Market Overview

Terex Announces First Quarter 2019 Results


•  Q1 Earnings per Share $0.79, $0.87 as adjusted
•  Increased Sales 2%, up 6% excluding the impact of FX
•  Backlog up 2%, up 6% excluding the impact of FX
•  Expect full year EPS in the upper half of our previously announced range of $3.60 to $4.20

WESTPORT, Conn., April 30, 2019 (GLOBE NEWSWIRE) -- Terex Corporation (NYSE:TEX) today announced first quarter 2019 income from continuing operations of $57.2 million, or $0.79 per share, on net sales of $1.1 billion.  In the first quarter of 2018, the reported income from continuing operations was $68.7 million, or $0.84 per share, on net sales of $1.1 billion.  Income from continuing operations, as adjusted, for the first quarter of 2019 was $62.3 million, or $0.87 per share. This compares to income from continuing operations, as adjusted, of $69.9 million or $0.85 per share in the first quarter of 2018. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.

"Overall we had a strong first quarter," stated John L. Garrison, Terex Chairman and CEO. "Our improving financial results, with adjusted operating margins greater than 9% and adjusted EPS increasing over 50% from what we presented in our Q1 earnings release in May 2018, clearly demonstrate the impact of executing our Focus, Simplify and Execute to Win strategy."

"Building on an excellent 2018, Materials Processing (MP) increased sales and expanded operating margin again in the first quarter."  Mr. Garrison continued, "MP's global markets remained strong and backlog continued to grow, increasing 17% on an FX-neutral basis."

"Aerial Work Platforms (AWP) started slower than last year, but gained momentum throughout the quarter. Revenue and operating margin were impacted by severe weather across the United States including a week-long closure of AWP's principal manufacturing and distribution facilities in Washington state.  Additionally, the strength of the U.S. dollar, particularly against the Euro, represented a headwind in the quarter."  Mr. Garrison added, "AWP is well positioned heading into the second quarter with $1.1 billion of backlog."

Mr. Garrison continued, "The previously announced agreement to sell the Demag® Mobile Cranes business remains on track to close mid-year, subject to government regulatory approvals and other customary closing conditions. We implemented our new two-segment structure, and are moving forward with plans to further simplify our corporate organization and reduce general and administrative expenses."

"We continue to invest in our Execute to Win business system, which remains focused on enhancing our capabilities in Commercial Excellence, Lifecycle Solutions and Strategic Sourcing," commented Mr. Garrison.  "We are seeing benefits from each of these areas in our financial performance."

Mr. Garrison concluded, "As a result of our first quarter performance, we now expect full year EPS to be in the upper half of our previously announced range of $3.60 to $4.20, excluding restructuring, transformation investments, and other unusual items, on net sales of approximately $4.7 billion."

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.

Total amounts in tables of this release may not add due to rounding.

Conference call

The Company has scheduled a one hour conference call to review the financial results on Wednesday, May 1, 2019 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  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

Contact Information:

Terex Corporation
Brian J. Henry, Senior Vice President
Business Development & Investor Relations
(203) 222-5954

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; changes in import/export regulatory regimes and the escalation of global trade conflicts could continue to negatively impact sales of our products and our financial results; our financial results could be adversely impacted by the United Kingdom's departure from the European Union; our 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; exposure from 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; 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 aerial work platforms, materials processing and crane products and services that deliver lifecycle solutions to maximize customer return on investment.  The Company reports in two business segments: Aerial Work Platforms 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 ( and its Facebook page ( to make information available to its investors and the market.

(in millions, except per share data)
    Three Months Ended
March 31,
    2019   2018
Net sales   $ 1,136.6     $ 1,116.6  
Cost of goods sold     (898.8 )     (888.0 )
Gross profit     237.8       228.6  
Selling, general and administrative expenses     (138.1 )     (134.3 )
Income (loss) from operations     99.7       94.3  
Other income (expense)            
Interest income     1.7       3.3  
Interest expense     (23.0 )     (15.9 )
Other income (expense) – net     (3.2 )     1.2  
Income (loss) from continuing operations before income taxes     75.2       82.9  
(Provision for) benefit from income taxes     (18.0 )     (14.2 )
Income (loss) from continuing operations     57.2       68.7  
Income (loss) from discontinued operations – net of tax     (124.4 )     (21.1 )
Gain (loss) on disposition of discontinued operations- net of tax     0.6       2.7  
Net income (loss)   $ (66.6 )   $ 50.3  
Basic Earnings (Loss) per Share:            
Income (loss) from continuing operations   $ 0.81     $ 0.86  
Income (loss) from discontinued operations – net of tax     (1.76 )     (0.26 )
Gain (loss) on disposition of discontinued operations – net of tax     0.01       0.03  
Net income (loss)   $ (0.94 )   $ 0.63  
Diluted Earnings (Loss) per Share:            
Income (loss) from continuing operations   $ 0.79     $ 0.84  
Income (loss) from discontinued operations – net of tax     (1.73 )     (0.26 )
Gain (loss) on disposition of discontinued operations – net of tax     0.01       0.04  
Net income (loss)   $ (0.93 )   $ 0.62  
Weighted average number of shares outstanding in per share calculation            
Basic     70.6       79.7  
Diluted     71.8       81.7  

 (in millions, except par value)
  March 31, 2019   December 31, 2018
Current assets          
Cash and cash equivalents $ 304.6   $ 339.5
Other current assets   1,796.8     1,624.0
Current assets held for sale   406.6     459.5
Total current assets   2,508.0     2,423.0
Non-current assets          
Property, plant and equipment – net   327.6     317.3
Other non-current assets   812.4     677.2
Non-current assets held for sale   6.8     68.4
Total non-current assets   1,146.8     1,062.9
Total assets $ 3,654.8   $ 3,485.9
Liabilities and Stockholders' Equity          
Current liabilities          
Notes payable and current portion of long-term debt $ 6.1   $ 4.1
Other current liabilities   954.7     1,031.1
Current liabilities held for sale   142.4     179.5
Total current liabilities   1,103.2     1,214.7
Non-current liabilities          
Long-term debt, less current portion   1,467.3     1,210.6
Other non-current liabilities   211.7     113.1
Non-current liabilities held for sale   90.3     86.5
Total non-current liabilities   1,769.3     1,410.2
Total liabilities   2,872.5     2,624.9
Total stockholders' e
View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at