Market Overview

Terex Announces Second Quarter 2018 Results

Share:

Q2 Earnings per Share $0.73, $0.98 as adjusted
•  Increased sales 19% and backlog 31%, growth in every segment
•  Increased operating profit by 33%, and 41% as adjusted
•  Disciplined capital allocation results in 2.9 million shares repurchased for $116 million
•  Updating 2018 full year EPS guidance from $2.70 - $3.00 to $2.80 - $3.00

WESTPORT, Conn., July 31, 2018 (GLOBE NEWSWIRE) -- Terex Corporation (NYSE:TEX) today announced second quarter 2018 income from continuing operations of $55.9 million, or $0.73 per share, on net sales of $1.4 billion. In the second quarter of 2017, the reported income from continuing operations was $95.4 million, or $0.98 per share, on net sales of $1.2 billion. Income from continuing operations, as adjusted, for the second quarter of 2018 was $74.9 million, or $0.98 per share. This compares to income from continuing operations, as adjusted, of $49.6 million or $0.51 per share in the second quarter of 2017. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.

"Terex significantly improved its second quarter, as adjusted, earnings per share compared to last year," stated John L. Garrison, Terex President and CEO. "These strong financial results reflect operational improvements, the considerable benefit of executing our disciplined capital allocation strategy and broad-based improvements in our global markets."

"Aerial Work Platforms (AWP) and Materials Processing (MP) continue to execute very well," Mr. Garrison continued. "Our Cranes segment improved as expected compared to the first quarter, but continued to be impacted by material shortages."

"We made progress implementing our Execute to Win business system across our three priority areas: Commercial Excellence; Lifecycle Solutions; and Strategic Sourcing" commented Mr. Garrison. "The initial benefits of Commercial Excellence are positively impacting our current performance.  We will start to see benefits from Strategic Sourcing in the second half of 2018."

"We remain committed to our Disciplined Capital Allocation Strategy. During the quarter we repurchased 2.9 million shares for $116 million. Over the past 18 months we repurchased approximately 34 million shares, or roughly one-third of our outstanding shares," said Mr. Garrison. "In addition, we recently announced a new $300 million share repurchase authorization."

"We are updating our full year 2018 adjusted EPS guidance range from $2.70 to $3.00 to $2.80 to $3.00," continued Mr. Garrison.  "This improvement reflects our first half operational results, capital market actions, and our expectations for the balance of 2018."

Non-GAAP Measures and Other Items

Results of operations reflect continuing operations. All per share amounts are on a fully diluted basis. A comprehensive review of the quarterly financial performance is contained in the presentation that will accompany the Company's earnings conference call.

In this press release, Terex refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Terex believes that this non-GAAP information is useful to understanding its operating results and the ongoing performance of its underlying businesses.

The Company provides guidance on a non-GAAP basis as the Company cannot predict with a reasonable degree of certainty the timing and magnitude of future charges that would be included in the reported GAAP results.

The Glossary at the end of this press release contains further details about this subject.

Conference call

The Company has scheduled a one hour conference call to review the financial results on Wednesday, August 1, 2018 at 8:30 a.m. ET.  John L. Garrison, President and CEO, will host the call. A simultaneous webcast of this call can be accessed at https://investors.terex.com. Participants are encouraged to access the call 10 minutes prior to the starting time. The call will also be archived in the Event Archive at https://investors.terex.com.

Contact Information:

Terex Corporation
Brian J. Henry, Senior Vice President
Business Development & Investor Relations
(203) 222-5954
brian.henry@terex.com
https://investors.terex.com

Forward-Looking Statements

This press release contains forward-looking information regarding future events or the Company's future financial performance based on the current expectations of Terex Corporation. In addition, when included in this press release, the words "may," "expects," "intends," "anticipates," "plans," "projects," "estimates" and the negatives thereof and analogous or similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statement is not forward-looking. The Company has based these forward-looking statements on current expectations and projections about future events. These statements are not guarantees of future performance.

Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond the control of Terex, include among others: Our business is cyclical and weak general economic conditions affect the sales of our products and financial results; the need to comply with restrictive covenants contained in our debt agreements; our ability to generate sufficient cash flow to service our debt obligations and operate our business; our ability to access the capital markets to raise funds and provide liquidity; our business is sensitive to government spending; our business is highly competitive and is affected by our cost structure, pricing, product initiatives and other actions taken by competitors; our retention of key management personnel; the financial condition of suppliers and customers, and their continued access to capital; our providing financing and credit support for some of our customers; we may experience losses in excess of recorded reserves; we are dependent upon third-party suppliers, making us vulnerable to supply shortages and price increases; the imposition of tariffs and related actions on trade by the U.S. and foreign governments; our business is global and subject to changes in exchange rates between currencies, commodity price changes, regional economic conditions and trade restrictions; our operations are subject to a number of potential risks that arise from operating a multinational business, including compliance with changing regulatory environments, the Foreign Corrupt Practices Act and other similar laws and political instability; a material disruption to one of our significant facilities; possible work stoppages and other labor matters; compliance with changing laws and regulations, particularly environmental and tax laws and regulations; litigation, product liability claims, intellectual property claims, class action lawsuits and other liabilities; our ability to comply with an injunction and related obligations imposed by the United States Securities and Exchange Commission ("SEC"); disruption or breach in our information technology systems and storage of sensitive data; our ability to successfully implement our Execute to Win strategy; and other factors, risks and uncertainties that are more specifically set forth in our public filings with the SEC.

Actual events or the actual future results of Terex may differ materially from any forward-looking statement due to these and other risks, uncertainties and significant factors.  The forward-looking statements speak only as of the date of this release. Terex expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this release to reflect any changes in expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.

About Terex
Terex Corporation is a global manufacturer of lifting and material processing products and services that deliver lifecycle solutions to maximize customer return on investment.  The company reports in three business segments: Aerial Work Platforms, Cranes, and Materials Processing. Terex delivers lifecycle solutions to a broad range of industries, including the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries.  Terex offers financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. Terex uses its website (www.terex.com) and its Facebook page (www.facebook.com/TerexCorporation) to make information available to its investors and the market.

       
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in millions, except per share data)
       
  Three Months Ended
June 30,
  Six Months Ended
June 30,
   
  2018   2017   2018   2017
Net sales $ 1,402.5     $ 1,181.7     $ 2,663.4     $ 2,188.6  
Cost of goods sold   (1,123.2 )     (941.0 )     (2,153.2 )     (1,795.6 )
Gross profit   279.3       240.7       510.2       393.0  
Selling, general and administrative expenses   (175.9 )     (163.0 )     (335.5 )     (320.0 )
Income (loss) from operations   103.4       77.7       174.7       73.0  
Other income (expense)                      
Interest income   2.0       1.5       5.4       3.3  
Interest expense   (18.2 )     (15.1 )     (34.2 )     (36.5 )
Loss on early extinguishment of debt         (6.5 )     (0.7 )     (51.9 )
Other income (expense) – net   (2.4 )     60.9       (1.4 )     42.0  
Income (loss) from continuing operations before income taxes   84.8       118.5       143.8       29.9  
(Provision for) benefit from income taxes   (28.9 )     (23.1 )     (40.3 )     5.2  
Income (loss) from continuing operations   55.9       95.4       103.5       35.1  
Gain (loss) on disposition of discontinued operations- net of tax   1.9       5.4       4.6       61.1  
Net income (loss) $ 57.8     $ 100.8     $ 108.1     $ 96.2  
Basic Earnings (Loss) per Share:                      
Income (loss) from continuing operations $
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