Terex Corporation has announced that it lost $60.3 million, or ($0.57) per share from continuing operations on net sales of $1.0 billion during the first quarter of 2017.
In the first quarter of 2016, the reported loss from continuing operations was $22.0 million, or $0.20 per share, on net sales of $1.1 billion.
Excluding after-tax charges of $65.8 million, income from continuing operations, as adjusted, for the first quarter of 2017 was $5.5 million, or $0.05 per share.
That compares to income from continuing operations, as adjusted, of $5.0 million or $0.05 per share in the first quarter of 2016.
The after-tax charges in the first quarter of 2017 were primarily for deal-related costs and the company’s refinancing activities.
“We are encouraged by our start to 2017,” said John L. Garrison, Terex president and CEO. “Our Material Processing (MP) segment had an excellent first quarter, growing sales and operating margin. Our Cranes segment results were consistent with our expectation that volumes would be down in the first half of 2017. In Aerial Work Platforms (AWP), sales were down as expected, and operating margins compressed on lower sales and the strength of the U.S. dollar.”
“Looking forward, we see positive momentum in our backlog, which grew year-over-year for the first time in eight quarters,” continued Garrison. “Overall backlog grew 10%, rising in each of our segments. In particular, the North American market for AWP products is stronger than we anticipated, with positive customer sentiment tempering the impact of the replacement cycle. Year over year, AWP backlog grew 21% and bookings rose 38%. In addition, MP backlog grew 29%.”
Garrison also said that Terex made substantial progress executing its strategy to focus and simplify the company, and to build capabilities in key commercial and operational areas. "In January we completed the MHPS sale. We also closed the sale of our loader backhoe business based in Coventry, England, and announced the sale of our India loader backhoe business," he said. "Our Cranes restructuring program is making progress, with the closing of our Jinan facility, and we continue to address structural costs. The Commercial Excellence program is providing greater visibility to sales opportunities and helping to improve our bookings and backlog.”
Garrison also noted that Terex significantly improved its capital structure, reducing debt by approximately $600 million, improving interest rates, and extending maturities. He said the company expects to see interest savings of approximately $35 million on an annualized basis.
Garrison continued: “In the first quarter we earned a dividend on our Konecranes shares of $13.5 million, contributing $0.09 to our earnings per share. We also repurchased approximately 6.5 million shares of Terex stock through our previously announced programs. Including the full year impact of the Konecranes dividends and our share repurchases, we are increasing our full year adjusted EPS guidance to $0.80 to $0.95.”
Re-segmentation and Non-GAAP Measures
A company statement said that current and prior period results reflect the re-segmentation of its scrap material handling, concrete mixer trucks, and concrete paver business from its former Construction segment into MP, and part of the North American services business from Cranes to MHPS and AWP. Also, the company said its MHPS business is reported as a discontinued operation. Remaining product lines of its former Construction segment, such as mini-excavators, loader backhoes, and site dumpers, are included in Corporate and Other.
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.
The full release with tables of financial data is available here.
Lift & Access is part of the Catalyst Communications Network publication family.
