AEDNews - Construction Equipment Industry News|
Terex Announces First Quarter Results
Terex Corporation announced income from continuing operations of $20.5 million, or $0.18 per share for the first quarter of 2012, as compared to income from continuing operations of $5.0 million, or $0.04 per share for the first quarter of 2011. Excluding the impact of a write down of an acquisition related note receivable of approximately $12 million, or $0.11 per share, income from continuing operations as adjusted was approximately $33 million, or $0.29 per share in the first quarter of 2012. Excluding certain items, loss from continuing operations as adjusted was a loss of $20.3 million, or a loss of $0.17 per share, in the first quarter of 2011. The glossary at the end of this press release contains further details regarding these items.
Net sales were $1,819.4 million in the first quarter of 2012, an increase of 44.8 percent from $1,256.2 million in the first quarter of 2011. Excluding the impact of the acquisition of Demag Cranes AG, net sales increased approximately 16 percent from the comparable prior year period. Income from operations was $63.8 million in the first quarter of 2012, an improvement of $73.1 million when compared to a loss from operations of $9.3 million in the first quarter of 2011. Excluding the impact of a write down of an acquisition related note receivable of approximately $12 million, income from operations as adjusted was $76.1 million. Excluding certain items from the first quarter of 2011, loss from operations as adjusted was approximately $3.8 million.
All results are for continuing operations, unless stated otherwise. Results for Demag Cranes AG are reported as the Material Handling & Port Solutions (MHPS) segment. All per share amounts are on a fully diluted basis.
“We are pleased that 2012 is developing as planned,” stated Ron DeFeo, Terex chairman and CEO. “While we still have a significant amount of work ahead of us, we have taken a solid step towards our margin expansion and cash flow objectives for the year. In fact, this is the first time in almost 10 years that we have generated positive operating cash flow in the first quarter, excluding the tax payment made this quarter as a result of the divestiture of the Mining business. We have traditionally used cash in operations in the first quarter, but our improved profitability combined with progress in factory efficiency and inventory focus, helped deliver our improved cash flow.”
DeFeo continued, “Overall, net sales were consistent with our expectations. North America was a strong market for most product categories, with the exception of our Roadbuilding products. We believe the global business environment continues to support growth and increased equipment sales. Although the Chinese market has softened somewhat, this was not unexpected and was built into our expectations for the year. We continue to be cautious about European markets where economic activity has been strong in some areas and weak in others. In terms of segment performance, we are encouraged by the performances of our Aerial Work Platforms (AWP) and Materials Processing (MP) businesses, both of which achieved operating margins in the high single digits giving us confidence that we will achieve our 2012 targets. Our Cranes business improved significantly versus the prior year, with a positive operating margin of approximately 5 percent in the quarter versus a negative 4 percent in the prior year period on a similar net sales level, excluding the effects of the write-down of receivables in both periods. Our Construction segment is on target for the year, with a breakeven first quarter and a backlog and order book that supports a profitable second quarter. Our MHPS segment’s operating results were in line with what we anticipated for the quarter.”
DeFeo added, “We are focused on executing the plan we articulated in February, namely achieving in 2012 approximately $475 to $525 million in operating profit and earnings per share of $1.65 to $1.85 per share (based on an average share count of approximately 116 million shares and excluding the impact of restructuring and unusual items) on sales of $7.5 to $8.0 billion. We believe, based on current economic conditions, that we can achieve these targets, while also continuing the momentum of cash generation started this past quarter.”
To view the full release visit www.terex.com.
Terex Corporation is a diversified global manufacturer reporting in five business segments: Aerial Work Platforms, Construction, Cranes, Material Handling & Port Solutions and Materials Processing. Terex manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, manufacturing, mining, shipping, transportation, refining, energy and utility industries. Terex offers financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. Terex uses its website to make information available to its investors and the market at www.terex.com.
Article Date: 2012-04-30
Source: Terex Corp.
Copyright(C) 2012 Associated Equipment Distributors. All Rights Reserved.