Terex Corporation has announced that it is lowering its full-year 2013 guidance and providing second quarter guidance.
Full year 2013 earnings per share is now expected to be between $1.90 and $2.10, as adjusted for certain non-recurring items. Previous full year 2013 guidance was an earnings per share of between $2.40 and $2.70. Due to the timing of this announcement, the company is also providing second quarter 2013 earnings per share guidance of $0.50 - $0.60 per share, excluding certain non-recurring items.
"The level of sales growth has softened overall for Terex when compared with the increases we originally anticipated for 2013," said Ron DeFeo, Terex chairman and CEO. "More specifically, we are experiencing a softer marketplace for our Construction, Material Handling & Port Solutions ("MHPS"), and, to a lesser degree, our Cranes operations. We do continue to experience positive replacement demand for Aerial Work Platform products and solid performance for Materials Processing. However, strength from these businesses will not offset the revenue variances of the balance of our business."
He added: "Fundamentally, North America continues to improve, but now at a slower pace, while Europe remains challenging overall, and the markets in the rest of the world are mixed. We remain generally on track with the operating changes underway, including the cost reduction initiatives in our MHPS and Cranes businesses, as well as the divestiture of under-performing businesses in our Construction segment. We continue to expect that the second half of 2013 will show improved results when compared with 2012."
A segment specific outlook for the remainder of 2013 will be provided by Terex when second quarter results are reported in late July.