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Terex Announces Positive First Quarter Results

Terex Corp. announced positive first quarter results due largely to the company's aerial work platform (AWP), and crane divisions, with continuing operations coming in at $20.9 million in 2013’s first quarter compared to $20.5 million in the first quarter of 2012.

Terex Chairman and CEO, Ron DeFeo said: “Our business performance was mixed in the first quarter. We are encouraged by the performance of our AWP business, which continues to reflect the strong end-market dynamics of the rental channel, particularly in North America. Our cranes and materials processing businesses also positively contributed to our results and performed generally as expected."

DeFeo continued on to say that their Material Handling & Port Solutions (MHPS) and construction segments have seen a decrease in revenue with Europe and India showing areas of weakness. “As a result, we are initiating additional actions in the second quarter to further adjust the cost structure of the MHPS and construction organizations to better reflect the reduced demand for certain of their products. We anticipate that we will be incurring restructuring and related charges of approximately $30-$50 million in the MHPS segment in the second quarter, and expect to realize a similar amount in savings over the next 12 to 24 months.”

The company’s liquidity at the end of the quarter increased approximately $52.3 million from December 31, 2012 to a total of $1, 184.9 million. Kevin Bradley, Terex senior vice president and CFO, commented: “We generated free cash flow in the first quarter of 2013 of approximately $135 million. We are pleased with this result as we normally consume cash early in the year. We continue to anticipate improved cash generation throughout the remainder of the year.”

The company reported a 7.7 % Return on Invested Capital for the trailing twelve months ended March 31, 2013; and a backlog of around $2, 166.1 million as of March 31 for deliverable orders during the next 12 months, again with  strong demand for AWP products and less such for construction.

Overall the company’s fiscal outlook for 2013 is consistent with prior forecasts. Defeo said: “Terex remains focused on improving profit through organic means, integrating the businesses more thoroughly, and generating consistent free cash flow. We reiterate our annual outlook of earnings per share to be between $2.40 and $2.70 per share, excluding restructuring and other unusual items, on net sales of between $7.9 billion and $8.3 billion.”

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