Market Overview

Terex Announces Third Quarter 2018 Results

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  • Q3 Earnings per Share $0.51, $0.68 as adjusted
  • Increased sales 11%, bookings 22%, and backlog 41%
  • AWP backlog up 48%, MP backlog up 72%
  • Operating margin improvement in AWP and MP

WESTPORT, Conn., Nov. 01, 2018 (GLOBE NEWSWIRE) -- Terex Corporation (NYSE:TEX) today announced third quarter 2018 income from continuing operations of $38.4 million, or $0.51 per share, on net sales of $1.2 billion.  In the third quarter of 2017, the reported income from continuing operations, which benefited from a non-recurring interim period tax adjustment, was $56.6 million, or $0.63 per share, on net sales of $1.1 billion.  Income from continuing operations, as adjusted, for the third quarter of 2018 was $51.4 million, or $0.68 per share. This compares to income from continuing operations, as adjusted, of $45.0 million or $0.50 per share in the third quarter of 2017. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.

"We continue to see strong global demand for our products," stated John L. Garrison, Terex Chairman and CEO.  "We increased sales, bookings, and backlog in the quarter.  AWP bookings grew by 50% to $601 million, reflecting continued strong demand for AWP products across all our major regions.  Overall backlog increased by 41% to $1.6 billion, led by a 72% increase in MP."

"AWP continues to execute well, meeting growing customer demand and improving operating margins despite input cost headwinds including tariffs," Mr. Garrison continued.  "MP had another excellent quarter.  It improved its operating margin again, as it continues to execute very well across its portfolio of businesses."

Mr. Garrison added, "As a result of supply chain challenges our mobile crane operations did not achieve its production plan.   That led to lower Cranes revenue and margin in the quarter which impacts our outlook for the full year."

"We continue to implement our Execute to Win priorities," commented Mr. Garrison.  "We are seeing benefits from our Commercial Excellence initiative in our market performance and executing plans in Strategic Sourcing and Lifecycle Solutions designed to significantly improve future performance."

Mr. Garrison concluded, "We are updating our full year 2018 adjusted EPS guidance to $2.60 to $2.70.  While our global markets remain strong, this guidance reflects our third quarter results, updated production plan in Cranes, higher input costs, including tariffs, and anticipated foreign exchange headwinds."

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 Friday, November 2, 2018 at 8:30 a.m. ET.  John L. Garrison, Chairman 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
September 30,
  Nine Months Ended
September 30,
  2018   2017   2018   2017
Net sales $ 1,228.5     $ 1,111.2     $ 3,891.9     $ 3,299.8  
Cost of goods sold   (995.7 )     (892.2 )     (3,148.9 )     (2,687.8 )
Gross profit   232.8       219.0       743.0       612.0  
Selling, general and administrative expenses   (160.9 )     (153.1 )     (496.4 )     (473.1 )
Income (loss) from operations   71.9       65.9       246.6       138.9  
Other income (expense)                      
Interest income   1.7       1.9       7.1       5.2  
Interest expense   (18.5 )     (15.5 )     (52.7 )     (52 )
Loss on early extinguishment of debt         (0.7 )     (0.7 )     (52.6 )
Other income (expense) – net   (4.4 )     5.1       (5.8 )     47.1  
Income (loss) from continuing operations before income taxes   50.7       56.7       194.5       86.6  
(Provision for) benefit from income taxes   (12.3 )  
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