WESTPORT, Conn.--(BUSINESS WIRE)--Apr. 21, 2009--
Terex Corporation (NYSE: TEX) today announced a net loss for the first
quarter of 2009 of $74.9 million, or $0.79 per share, compared to net
income of $163.3 million, or $1.59 per share, for the first quarter of
2008. Net sales were $1.30 billion in the first quarter of 2009, a
decrease of 45% from $2.36 billion in the first quarter of 2008.
Adjusting for the translation effect of foreign currency exchange rate
changes, net sales decreased 37% from the comparable prior year period.
During the first quarter of 2009, the Company incurred after-tax charges
of $30 million, or $0.32 per share, associated with restructuring
programs and a continued reduction in production levels. All per share
amounts are on a fully diluted basis.
“The turmoil from the global credit crisis and economic slowdown has
quickly and deeply impacted sales for our industry, with certain sectors
down almost 75% from year ago levels,” commented Ron DeFeo, Terex
Chairman and Chief Executive Officer. “In response, we are aggressively
reducing costs, with manufacturing spending in the first quarter of 2009
down 39% from the peak spending level in the second quarter of 2008 and
down 16% sequentially, and selling, general and administrative spending
both excluding restructuring, down 26% and 14%, respectively, for the
same periods. Combined, this results in a $208 million quarterly
spending reduction, and we expect to exceed a $300 million per quarter
spending reduction by year end. We continue to operate at reduced
production levels, in many instances at levels well below our current
demand, with a primary objective to reduce inventory where we saw
progress in the quarter with a solid reduction in raw material
deliveries. The short term goal is to focus on the loss making
businesses to achieve a breakeven or profitable level, while being cash
flow positive for the overall Company, even at these trough levels.” Mr.
DeFeo continued, “We remain confident in the long term outlook for our
business as we concentrate on managing through these immediate
challenges.”
Tom Riordan, Terex President and Chief Operating Officer, commented, “We
are operating with a build-to-order approach as we tightly manage
inventory levels. All of our businesses are working closely with our
suppliers to minimize raw material deliveries, which were reduced by
over $90 million in the quarter. We are working closely with our
customers and dealers to confirm existing orders in an effort to
minimize the level of inventory in the distribution channel. We believe
that this, along with aggressive actions with production scheduling,
should generate significant cash flow from operations during the
remainder of 2009.”
Mr. Riordan, who is also acting in the capacity of Interim President for
Terex Construction, added, “The Construction segment generated a large
operating loss during the first quarter, as restructuring activities
resulted in substantial charges. Beginning in the third quarter of 2008,
aggressive actions have been underway and continue to be implemented, as
a minimum of $100 million of costs are targeted to be taken out of the
Construction business on an annualized basis. With the goal of achieving
breakeven profitability in 2010, the majority of these actions already
have been implemented, including headcount reductions, continued short
work weeks and temporary plant shut-downs, reductions in pay for
management, and other employee and non-essential cost related items.”
Mr. Riordan continued, “The balance of our businesses posted mixed
results for the first quarter, with our Mining and Cranes businesses
generating solid profitability as end markets remained healthy, although
these businesses have begun to experience the effects of the economic
downturn. This performance was offset by continued challenges with our
Aerial Work Platforms and Materials Processing businesses as net sales
declined more quickly than costs were taken out of these operations.
Significant cost reduction actions have been taken and are continuing in
both of these businesses.”
Highlights for the First Quarter of 2009
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. Certain
financial measures are shown in italics the first time referenced and
are described in a Glossary at the end of this press release.
Net Sales: Net sales were $1,302.6
million in the first quarter of 2009, a decrease of $1,060.1 million, or
44.9%, from $2,362.7 million in the first quarter of 2008. Each of the
Company’s segments experienced lower net sales as the global economy
continued to deteriorate. Approximately $194 million of the net sales
decrease was due to the translation effect of foreign currency exchange
rate changes, primarily the strength of the U.S. Dollar relative to the
Euro, British Pound and Australian Dollar.
(Loss)/Income from Operations and
Operating Margin: Loss from operations was $72.5 million in the
first quarter of 2009, as compared to income from operations of $256.3
million in the first quarter of 2008. The first quarter of 2009 operating
margin was negative 5.6%, versus the operating margin from the first
quarter of 2008 of 10.8%. Lower net sales negatively impacted
profitability by approximately $232 million. Costs, primarily related to
reductions in production levels and headcount, negatively impacted
profitability by approximately $40 million. Manufacturing spending
levels were reduced by $99 million or 32% compared to the first quarter
of 2008; however, due to the significant production volume reduction,
net manufacturing unabsorbed cost for the period increased by
approximately $44 million.
Interest and Other Income/Expense:
Lower average interest rates favorably impacted interest expense for the
first quarter of 2009 by $2.0 million as compared to the prior year
period, while interest income decreased $7.9 million due to lower
average cash balances and lower interest rates. Other expense for the
first quarter of 2009 compared unfavorably to other income for the first
quarter of 2008 by $11.3 million, due primarily to foreign currency
translation losses.
Taxes: The effective tax rate for
the first quarter of 2009 was 24.4%, compared to the effective tax rate
of 33.6% for the first quarter of 2008. The difference in tax rates
between the first quarter of 2009 versus the first quarter of 2008 was
due to losses incurred in jurisdictions in which the Company does not
receive a tax benefit due to a lack of near term expected profitability
and adjustments for estimates and settlements of certain income tax
audit exposures.
Capital Structure: Return on
Invested Capital (ROIC) was 11.8% for the trailing twelve
months ended March 31, 2009, compared to 19.2% for the full year 2008.
Cash flow from operations in the first quarter of 2009 was a use of
$139.2 million, primarily due to the operating loss incurred combined
with a use of $40.1 million from working capital. For the comparable
period in 2008, cash flow from operations was a use of $190.4 million. Debt,
less cash and cash equivalents, increased $187.1 million in the first
quarter of 2009 to $1,138.5 million, compared to the fourth quarter of
2008. The Company’s performance has led to a ratio of Debt, less cash
and cash equivalents, to Total Capitalization of 42.0% at the end
of the first quarter of 2009, versus 30.4% at year end 2008.
The Company has no material near-term debt maturities, with the earliest
maturity in July 2012. Total debt of $1,482.8 million at the end of the
first quarter of 2009 was composed of $276.0 million of senior bank
debt, $1,098.7 million of senior subordinated notes and $108.1 million
of other local debt, capital leases and the gain on an interest rate
swap agreement.
The Company’s liquidity at March 31, 2009, totaled $899.3 million, which
was composed of cash balances of $344.3 million and borrowing
availability under the Company’s revolving credit facility of $555.0
million. Liquidity at March 31, 2009 decreased by $167.9 million as
compared to December 31, 2008 levels of $1,067.2 million, primarily due
to the operating losses and settlement of other liabilities, partially
offset by a reduction in letter of credit requirements during the first
quarter of 2009.
As previously announced on April 1, 2009, the Company has entered into a
non-binding term sheet to acquire the port equipment businesses of
Fantuzzi Industries and Noell Crane. The transaction, which is expected
to close in the near future, will be fully funded through long-term
financing on favorable terms to be extended by the existing creditors to
the Fantuzzi group, including credit availability that is expected to be
sufficient to complete the necessary restructuring of the operations. As
such, management does not expect there to be an impact on the available
liquidity of the Company as a result of the transaction.
Phil Widman, Terex Senior Vice President and Chief Financial Officer,
commented, “We remain in compliance with our financial covenants under
our credit agreement. We continue to pursue cash generation
opportunities, including cost reduction activities, reviewing
alternatives for under-utilized assets, and tightly managing capital
expenditures. We have reduced our capital expenditures, which were $20.7
million during the first quarter of 2009 versus $24.8 million for the
comparable prior year period, and we expect further reduction as we
proceed through the year.”
Working capital: Working Capital
as a percent of Trailing Three Month Annualized Sales was 42.3%
at March 31, 2009, as compared to 24.9% at March 31, 2008. Lower sales
during the first quarter of 2009 drove this increase as sales slowed
more quickly than working capital could be reduced.
Analyzing the three components of working capital (i.e. accounts
receivable plus inventory less accounts payable, as defined in the
Glossary) illustrates the actions being taken by the Company to preserve
and generate cash. Inventory of $2,151.9 million at March 31, 2009
decreased $26.1 million as compared to the balance at December 31, 2008,
excluding the translation effect of foreign currency exchange rate
changes. Efforts to minimize incoming material have contributed to a
reduction of approximately $92 million in raw material inventory,
excluding the translation effect of foreign currency exchange rate
changes. Slowing incoming deliveries and operating at reduced production
levels, should lead to further reductions in total inventory during the
coming months.
Days sales outstanding increased to 49 days at March 31, 2009
from 43 days at December 31, 2008. However, this was down from 54 days
in the prior year first quarter, as the Company continues to actively
manage its customer positions. Trade receivables decreased $243.4
million during the first quarter of 2009 from year end 2008 levels,
excluding the translation effect of foreign currency exchange rate
changes. The decrease reflected lower sales volume and tight management
of collections, offset partially by reduced receivable discounting.
Slowing raw material deliveries resulted in reduced accounts payable of
$309.6 million compared to year end 2008 levels, excluding the
translation effect of foreign exchange rate changes. Days payable
outstanding remained unchanged at 51 days at March 31, 2009 versus
year end 2008. Further reductions in working capital are expected during
the second quarter of 2009 and for the remainder of 2009, driven mainly
by inventory reductions. The Company continues to expect to reduce
inventory levels by more than $500 million by the end of 2009 as
compared to year end 2008.
Backlog: Backlog for orders
deliverable during the next twelve months was $1,983.3 million at March
31, 2009, a decrease of 58.8% versus March 31, 2008, and a decrease of
32.9% versus December 31, 2008. The decrease in backlog reflects lower
net order intake across each of the Company’s segments, combined with
the translation effect of foreign currency exchange rate changes of
approximately 7% year-over-year and 2% sequentially.
2009 Update:
The Company currently expects its 2009 net sales to decline in the range
of 40%-45% compared to 2008, approximately 14% of which is the estimated
translation effect of foreign currency exchange rate changes. Previous
guidance was for 2009 net sales to decline in the range of 30%-35%,
which included an estimated translation effect of foreign currency
exchange rate changes of 13%. The anticipated further decline in net
sales reflects weak global end markets combined with continued
constrained credit availability worldwide.
The impact of restructuring activities is expected to result in improved
financial results for the second quarter of 2009, and the Company
expects to be profitable for the second half of 2009, excluding charges
related to ongoing restructuring activities.
Costs are being aggressively targeted across the Company. A global
salary reduction for virtually all team members, including a 10% pay
reduction for all senior managers and experienced professionals, is
being implemented. Reductions in force continue, in conjunction with
short work weeks and temporary lay-offs to reduce costs while retaining
as many of the Company’s highly talented and skilled work force as
possible.
As illustrated below, manufacturing and selling, general &
administrative (SG&A) spending are being reduced to realign the cost
structure with lower net sales, and further actions are underway that
are not yet fully reflected in the Company’s run rate of spending.
(USD millions)
|
|
|
Terex Corporation
|
|
|
Terex AWP
|
|
|
Terex Construction
|
|
|
Terex Cranes
|
|
|
Terex MPM
|
|
|
|
Q1 2009 vs
Q4 2008
|
|
Q1 2009 vs
Q1 2008
|
|
|
Q1 2009
vs
Q4 2008
|
|
Q1 2009 vs
Q1 2008
|
|
|
Q1 2009 vs
Q4 2008
|
|
Q1 2009 vs
Q1 2008
|
|
|
Q1 2009 vs
Q4 2008
|
|
Q1 2009 vs
Q1 2008
|
|
|
Q1 2009 vs
Q4 2008
|
|
Q1 2009 vs
Q1 2008
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change
|
|
|
(37%)
|
|
(45%)
|
|
|
(43%)
|
|
(66%)
|
|
|
(34%)
|
|
(48%)
|
|
|
(38%)
|
|
(29%)
|
|
|
(32%)
|
|
(34%)
|
Dollar Change
|
|
$
|
(774)
|
|
(1,060)
|
|
$
|
(174)
|
|
(436)
|
|
$
|
(135)
|
|
(239)
|
|
$
|
(284)
|
|
(188)
|
|
$
|
(176)
|
|
(191)
|
Manufacturing spending (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change
|
|
|
(16%)
|
|
(32%)
|
|
|
(15%)
|
|
(46%)
|
|
|
(27%)
|
|
(39%)
|
|
|
(5%)
|
|
0%
|
|
|
(23%)
|
|
(39%)
|
Dollar Change
|
|
$
|
(40)
|
|
(99)
|
|
$
|
(11)
|
|
(51)
|
|
$
|
(15)
|
|
(27)
|
|
$
|
(4)
|
|
(0)
|
|
$
|
(10)
|
|
(21)
|
SG&A less restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage change
|
|
|
(14%)
|
|
(20%)
|
|
|
(21%)
|
|
(33%)
|
|
|
(15%)
|
|
(17%)
|
|
|
(9%)
|
|
(8%)
|
|
|
(10%)
|
|
(17%)
|
Dollar Change
|
|
$
|
(35)
|
|
(51)
|
|
$
|
(12)
|
|
(22)
|
|
$
|
(10)
|
|
(11)
|
|
$
|
(6)
|
|
(4)
|
|
$
|
(5)
|
|
(10)
|
(1) Manufacturing spending includes manufacturing salaries,
wages, fixed and variable overhead costs.
|
Specific actions not yet fully reflected in the spending above are
detailed in the presentation that will accompany the earnings release
conference call that is scheduled for 8:30 am, Wednesday, April 22,
2009. The details for participation in the conference call were provided
in the press release issued April 9, 2009, which is available in the
Investor Relations section of the Terex website, www.terex.com.
First Quarter Segment Performance Review
Segment Realignment: As previously
announced, on January 1, 2009, Terex realigned certain operations in an
effort to capture market synergies and streamline its cost structure.
The Roadbuilding businesses, formerly part of the Roadbuilding, Utility
Products and Other segment, are now consolidated within the Construction
segment. The Utility Products businesses, formerly part of the
Roadbuilding, Utility Products and Other segment, are now consolidated
within the Aerial Work Platforms segment. Certain other businesses that
were included in the Roadbuilding, Utility Products and Other segment
are now reported in Corporate and Other, which includes eliminations
among the Company’s segments. Additionally, the truck-mounted
articulated hydraulic crane line of business produced in Delmenhorst and
Vechta, Germany, formerly part of the Construction segment, is now
consolidated within the Cranes segment. The segment performance data
within this press release reflects this current organization, and prior
period amounts have been retrospectively adjusted to conform with this
presentation.
Aerial Work Platforms: Net sales
for the Aerial Work Platforms (AWP) segment for the first quarter of
2009 decreased $436.2 million, or 65.6%, to $228.5 million versus the
first quarter of 2008. Excluding the translation effect of foreign
currency exchange rate changes, net sales decreased approximately 64%.
Rental customers are aging their fleets and deferring the purchase of
new aerial and telehandler products. Demand is stable for large booms in
excess of 80 feet and very small aerials that are referred to as
‘runabouts’, but the core rental customer products of mid-size booms (40
– 60 feet), scissor lifts and telehandlers remain weak.
An operating loss of $41.0 million was incurred during the first quarter
of 2009 as compared to an operating profit of $108.7 million earned
during the first quarter of 2008, primarily driven by lower net sales
compared to the prior year period. Costs, primarily related to reduction
in production levels, negatively impacted profitability by approximately
$8 million. Manufacturing spending levels were reduced by $51 million or
46%. However, due to the significant production volume reduction, net
manufacturing unabsorbed cost for the period increased by approximately
$24 million. These negative factors were partially offset by reductions
in SG&A and other costs.
Construction: Net sales for the
Construction segment for the first quarter of 2009 decreased $238.9
million, or 47.7%, to $261.7 million versus the first quarter of 2008.
Excluding the translation effect of foreign currency exchange rate
changes, net sales decreased approximately 39%. Global weakness,
including in developing markets, negatively impacted the sales volume of
the entire Construction segment product line. Finished goods inventory
is being re-allocated from very weak markets, such as Spain, to markets
still displaying modest demand, such as some of the northern African
countries.
An operating loss of $83.6 million was incurred during the first quarter
of 2009 as compared to an operating profit of $4.5 million earned during
the first quarter of 2008. Lower net sales compared to the prior year
period negatively impacted profitability by approximately $46 million.
Costs primarily related to reduction in production levels negatively
impacted profitability by approximately $26 million. Manufacturing
spending levels were reduced by $27 million or 39%. However, due to the
significant production volume reduction, net manufacturing unabsorbed
cost for the period increased by approximately $8 million. These
negative factors were partially offset by reductions in SG&A and other
costs.
Cranes: Net sales for the Cranes
segment for the first quarter of 2009 decreased $187.5 million, or
28.9%, to $461.4 million versus the first quarter of 2008. Excluding the
translation effect of foreign currency exchange rate changes, net sales
decreased approximately 19%. Rough terrain and tower crane sales during
the first quarter of 2009 were at levels substantially below sales
volumes achieved during the first quarter of 2008, as commercial
construction projects were postponed or halted and oil related energy
demand for rough terrain cranes slowed. High capacity crawler and
all-terrain cranes continue to be needed for infrastructure projects and
energy related projects such as wind power and power plant construction.
Operating profit for the first quarter of 2009 totaled $25.4 million, a
decrease of $58.2 million compared with the operating profit of $83.6
million earned during the first quarter of 2008. Operating margin
decreased to 5.5% as compared to 12.9% in the first quarter of 2008.
Lower net sales compared to the prior year period combined with higher
input costs to negatively impact profitability by approximately $58
million. These decreases were partially offset by increased price
realization of approximately $14 million.
Materials Processing & Mining:
Net sales for the Materials Processing & Mining (MPM) segment for the
first quarter of 2009 decreased $191.2 million, or 33.9%, to $373.1
million versus the first quarter of 2008. Excluding the translation
effect of foreign currency exchange rate changes, net sales decreased
approximately 21%. Sales of materials processing equipment remained weak
during the first quarter of 2009, although production cuts have
succeeded in reducing finished goods inventory levels. Sales declines of
materials processing equipment were partially offset by mining equipment
sales that benefitted from a favorable product mix oriented towards
larger trucks, as well as price increases for shovels and trucks. Demand
for mining equipment is being driven by strength in select commodities
such as thermal coal and gold.
Operating profit for the first quarter of 2009 totaled $35.7 million, a
decrease of $33.0 million compared with the operating profit of $68.7
million earned during the first quarter of 2008. Operating margin for
the first quarter of 2009 was 9.6% as compared to 12.2% for the first
quarter of 2008, reflecting the deterioration in end markets for
Materials Processing that was partially offset by continued strength in
Mining.
Corporate and Other/ Eliminations:
The loss from operations of $9.0 million was virtually unchanged when
compared to the prior year period. However, segment allocations were
reduced in the first quarter of 2009 versus the prior year period by
approximately $8.0 million due to cost reduction actions taken in
Corporate.
Segment Backlog
Aerial Work Platforms segment backlog decreased 81.3% as compared to
March 31, 2008, and decreased 13.5% as compared to December 31, 2008,
primarily due to the significant slowing in economic activity. During
the last twelve months, demand has dropped from slowing economic
activity, up to 70% in some markets such as certain countries in Western
Europe. Demand has begun to exhibit some indications that stability has
been reached in end markets, although at a low level. Due to continuing
economic uncertainty, customers are ordering equipment when needed,
rather than planning purchases in advance as they did in prior periods,
resulting in minimal levels of backlog.
Construction segment backlog decreased 84.3% versus the comparable prior
year period and decreased 42.7% as compared to December 31, 2008, as
construction activity continued to slow. Order intake for heavy
construction equipment slowed during the first quarter of 2009 while
compact construction equipment demand remained weak. Similar to demand
for aerial work platforms, customers of construction equipment are only
purchasing equipment when they are ready to put it immediately to work,
rather than planning orders in advance, as was common practice a year
ago.
Cranes segment backlog decreased 41.1% when compared to March 31, 2008
levels, and decreased 32.6% as compared to December 31, 2008 levels.
Demand for high capacity cranes, including crawler cranes and
all-terrain cranes, remains stable as infrastructure and energy related
projects utilize these high capacity cranes. Rough terrain and tower
crane demand has slowed and demand for smaller capacity cranes remains
weak. Existing orders continue to be re-affirmed and a financing program
for cranes through Terex Financial Services was recently launched and
has helped solidify backlog.
Materials Processing & Mining segment backlog decreased 56.8% versus
March 31, 2008, and decreased 35.5% as compared to December 31, 2008.
Materials Processing backlog was basically unchanged sequentially as
some stability has been reached in end markets, although at a low level.
The Mining business continues to work through existing orders but new
order intake for the second half of 2009 has slowed, particularly for
trucks and drills.
The Glossary contains further details regarding backlog.
Safe Harbor Statement
This press release contains forward-looking information based on the
current expectations of Terex Corporation. 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 may affect the sales of our products
and financial results; our ability to access the capital markets to
raise funds and provide liquidity; our business is sensitive to
fluctuations in government spending; our business is very competitive
and may be affected by our cost structure, pricing, product initiatives
and other actions taken by competitors; a material disruption to one of
our significant facilities; our retention of key management personnel;
the financial condition of suppliers and customers, and their continued
access to capital; our ability to obtain parts and components from
suppliers on a timely basis at competitive prices; our ability to timely
manufacture and deliver products to customers; the need to comply with
restrictive covenants contained in our debt agreements; our business is
global and subject to changes in exchange rates between currencies, as
well as international politics, particularly in developing markets; the
effects of changes in laws and regulations; possible work stoppages and
other labor matters; compliance with applicable environmental laws and
regulations; litigation and product liability claims and other
liabilities; investigations by the Securities and Exchange Commission
(SEC) and the Department of Justice; our implementation of a global
enterprise system and its performance; 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.
Terex Corporation is a diversified global manufacturer with 2008 net
sales of $9.9 billion. Terex operates in four business segments: Terex
Aerial Work Platforms, Terex Construction, Terex Cranes, and Terex
Materials Processing & Mining. Terex manufactures a broad range of
equipment for use in various industries, including the construction,
infrastructure, quarrying, surface mining, shipping, transportation,
refining and utility industries. Terex offers a complete line of
financial products and services to assist in the acquisition of Terex
equipment through Terex Financial Services. More information on Terex
can be found at www.terex.com.
TEREX CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
(unaudited)
|
(in millions, except per share data)
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2009
|
|
|
|
2008
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,302.6
|
|
|
$
|
2,362.7
|
|
Cost of goods sold
|
|
|
(1,158.1
|
)
|
|
|
(1,848.7
|
)
|
|
|
|
|
|
|
|
Gross profit
|
|
|
144.5
|
|
|
|
514.0
|
|
Selling, general and administrative expenses
|
|
|
(217.0
|
)
|
|
|
(257.7
|
)
|
|
|
|
|
|
|
|
(Loss) income from operations
|
|
|
(72.5
|
)
|
|
|
256.3
|
|
Other income (expense)
|
|
|
|
|
|
|
Interest income
|
|
|
1.2
|
|
|
|
9.1
|
|
Interest expense
|
|
|
(23.5
|
)
|
|
|
(25.5
|
)
|
Other (expense) income – net
|
|
|
(3.7
|
)
|
|
|
7.6
|
|
(Loss) income before income taxes
|
|
|
(98.5
|
)
|
|
|
247.5
|
|
|
|
|
|
|
|
|
Benefit from (provision for) income taxes
|
|
|
24.0
|
|
|
|
(83.2
|
)
|
Net (loss) income
|
|
|
(74.5
|
)
|
|
|
164.3
|
|
Less: Net income attributable to non-controlling interest
|
|
|
(0.4
|
)
|
|
|
(1.0
|
)
|
Net (loss) income attributable to Terex Corporation
|
|
$
|
(74.9
|
)
|
|
$
|
163.3
|
|
(Loss) Earnings Per Common Share Attributable to Terex Corporation
Common Stockholders
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.79
|
)
|
|
$
|
1.62
|
|
Diluted
|
|
$
|
(0.79
|
)
|
|
$
|
1.59
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding in per share
calculation
|
|
|
|
|
|
|
Basic
|
|
|
94.8
|
|
|
|
101.1
|
|
Diluted
|
|
|
94.8
|
|
|
|
103.0
|
|
TEREX CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(unaudited)
|
(in millions, except par value)
|
|
|
March 31,
2009
|
|
December 31, 2008
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
344.3
|
|
|
$
|
484.4
|
|
Trade receivables (net of allowance of $60.7 and $62.8 at March
31, 2009 and December 31, 2008, respectively)
|
|
|
701.8
|
|
|
|
967.5
|
|
Inventories
|
|
|
2,151.9
|
|
|
|
2,234.8
|
|
Deferred taxes
|
|
|
140.8
|
|
|
|
139.0
|
|
Other current assets
|
|
|
184.4
|
|
|
|
215.2
|
|
Total current assets
|
|
|
3,523.2
|
|
|
|
4,040.9
|
|
Long-term assets
|
|
|
|
|
|
|
Property, plant and equipment - net
|
|
|
475.6
|
|
|
|
481.5
|
|
Goodwill
|
|
|
451.1
|
|
|
|
457.0
|
|
Deferred taxes
|
|
|
93.7
|
|
|
|
84.5
|
|
Other assets
|
|
|
377.2
|
|
|
|
381.5
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
4,920.8
|
|
|
$
|
5,445.4
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Notes payable and current portion of long-term debt
|
|
$
|
37.6
|
|
|
$
|
39.4
|
|
Trade accounts payable
|
|
|
647.5
|
|
|
|
983.9
|
|
Accrued compensation and benefits
|
|
|
156.2
|
|
|
|
169.3
|
|
Accrued warranties and product liability
|
|
|
138.0
|
|
|
|
149.3
|
|
Customer advances
|
|
|
103.4
|
|
|
|
119.3
|
|
Other current liabilities
|
|
|
344.0
|
|
|
|
363.4
|
|
Total current liabilities
|
|
|
1,426.7
|
|
|
|
1,824.6
|
|
Non-current liabilities
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
1,445.2
|
|
|
|
1,396.4
|
|
Retirement plans and other
|
|
|
459.4
|
|
|
|
480.5
|
|
Total liabilities
|
|
|
3,331.3
|
|
|
|
3,701.5
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
Common stock, $.01 par value – authorized 300.0 shares; issued 107.5
and
107.1 shares at March 31, 2009 and December 31, 2008, respectively
|
|
|
1.1
|
|
|
|
1.1
|
|
Additional paid-in capital
|
|
|
1,042.4
|
|
|
|
1,046.2
|
|
Retained earnings
|
|
|
1,281.8
|
|
|
|
1,356.6
|
|
Accumulated other comprehensive loss
|
|
|
(156.7
|
)
|
|
|
(82.3
|
)
|
Less cost of shares of common stock in treasury – 13.1 shares at March
31, 2009 and December 31, 2008, respectively
|
|
|
(598.8
|
)
|
|
|
(599.9
|
)
|
Total Terex Corporation stockholders’ equity
|
|
|
1,569.8
|
|
|
|
1,721.7
|
|
Noncontrolling interest
|
|
|
19.7
|
|
|
|
22.2
|
|
Total equity
|
|
|
1,589.5
|
|
|
|
1,743.9
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
4,920.8
|
|
|
$
|
5,445.4
|
|
TEREX CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
(unaudited)
|
(in millions)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2009
|
|
|
2008
|
|
Operating Activities
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(74.5
|
)
|
|
$
|
163.3
|
|
Adjustments to reconcile net (loss) income to cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
19.3
|
|
|
|
17.2
|
|
Amortization
|
|
|
5.3
|
|
|
|
5.2
|
|
Deferred taxes
|
|
|
(21.5
|
)
|
|
|
23.2
|
|
Gain on sale of assets
|
|
|
(0.3
|
)
|
|
|
(0.8
|
)
|
Stock-based compensation expense
|
|
|
9.2
|
|
|
|
17.0
|
|
Excess tax benefit from stock-based compensation
|
|
|
-
|
|
|
|
(6.0
|
)
|
Changes in operating assets and liabilities (net of effects of
acquisitions):
|
|
|
|
|
|
|
Trade receivables
|
|
|
243.4
|
|
|
|
(133.8
|
)
|
Inventories
|
|
|
26.1
|
|
|
|
(289.4
|
)
|
Trade accounts payable
|
|
|
(309.6
|
)
|
|
|
112.3
|
|
Accrued compensation and benefits
|
|
|
(14.6
|
)
|
|
|
(28.4
|
)
|
Income taxes payable
|
|
|
(18.7
|
)
|
|
|
46.5
|
|
Accrued warranties and product liability
|
|
|
(11.7
|
)
|
|
|
(0.7
|
)
|
Customer advances
|
|
|
(12.8
|
)
|
|
|
(48.1
|
)
|
Other, net
|
|
|
21.2
|
|
|
|
(67.9
|
)
|
Net cash used in operating activities
|
|
|
(139.2
|
)
|
|
|
(190.4
|
)
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
Acquisition of businesses, net of cash acquired
|
|
|
-
|
|
|
|
(439.1
|
)
|
Capital expenditures
|
|
|
(20.7
|
)
|
|
|
(24.8
|
)
|
Proceeds from sale of assets
|
|
|
0.5
|
|
|
|
2.0
|
|
Net cash used in investing activities
|
|
|
(20.2
|
)
|
|
|
(461.9
|
)
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
Payment of debt issuance costs
|
|
|
(3.0
|
)
|
|
|
-
|
|
Excess tax benefit from stock-based compensation
|
|
|
-
|
|
|
|
6.0
|
|
Proceeds from stock options exercised
|
|
|
-
|
|
|
|
0.7
|
|
Net borrowings (repayments) under revolving line of credit agreements
|
|
|
45.3
|
|
|
|
(6.6
|
)
|
Share repurchase
|
|
|
-
|
|
|
|
(44.4
|
)
|
Acquisition of noncontrolling interest
|
|
|
(1.7
|
)
|
|
|
-
|
|
Other, net
|
|
|
(0.4
|
)
|
|
|
(0.6
|
)
|
Net cash provided by (used in) financing activities
|
|
|
40.2
|
|
|
|
(44.9
|
)
|
|
|
|
|
|
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
(20.9
|
)
|
|
|
29.0
|
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash and Cash Equivalents
|
|
|
(140.1
|
)
|
|
|
(668.2
|
)
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
484.4
|
|
|
|
1,272.4
|
|
Cash and Cash Equivalents at End of Period
|
|
$
|
344.3
|
|
|
$
|
604.2
|
|
TEREX CORPORATION AND SUBSIDIARIES
|
SEGMENT RESULTS DISCLOSURE
|
(in millions)
|
(unaudited)
|
|
|
|
First Quarter
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
|
|
|
Net sales
|
|
|
|
|
Net sales
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,302.6
|
|
|
|
|
$
|
2,362.7
|
|
|
|
Gross profit
|
|
|
144.5
|
|
|
11.1
|
%
|
|
|
514.0
|
|
|
21.8
|
%
|
SG&A
|
|
|
217.0
|
|
|
16.7
|
%
|
|
|
257.7
|
|
|
10.9
|
%
|
(Loss) income from operations
|
|
$
|
(72.5
|
)
|
|
(5.6
|
%)
|
|
$
|
256.3
|
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
AWP
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
228.5
|
|
|
|
|
$
|
664.7
|
|
|
|
Gross profit
|
|
|
5.1
|
|
|
2.2
|
%
|
|
|
176.4
|
|
|
26.5
|
%
|
SG&A
|
|
|
46.1
|
|
|
20.2
|
%
|
|
|
67.7
|
|
|
10.2
|
%
|
(Loss) income from operations
|
|
$
|
(41.0
|
)
|
|
(17.9
|
%)
|
|
$
|
108.7
|
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
261.7
|
|
|
|
|
$
|
500.6
|
|
|
|
Gross profit
|
|
|
(23.7
|
)
|
|
(9.1
|
%)
|
|
|
67.7
|
|
|
13.5
|
%
|
SG&A
|
|
|
59.9
|
|
|
22.9
|
%
|
|
|
63.2
|
|
|
12.6
|
%
|
(Loss) income from operations
|
|
$
|
(83.6
|
)
|
|
(31.9
|
%)
|
|
$
|
4.5
|
|
|
0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cranes
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
461.4
|
|
|
|
|
$
|
648.9
|
|
|
|
Gross profit
|
|
|
78.5
|
|
|
17.0
|
%
|
|
|
140.7
|
|
|
21.7
|
%
|
SG&A
|
|
|
53.1
|
|
|
11.5
|
%
|
|
|
57.1
|
|
|
8.8
|
%
|
Income from operations
|
|
$
|
25.4
|
|
|
5.5
|
%
|
|
$
|
83.6
|
|
|
12.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
MPM
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
373.1
|
|
|
|
|
$
|
564.3
|
|
|
|
Gross profit
|
|
|
84.6
|
|
|
22.7
|
%
|
|
|
127.6
|
|
|
22.6
|
%
|
SG&A
|
|
|
48.9
|
|
|
13.1
|
%
|
|
|
58.9
|
|
|
10.4
|
%
|
Income from operations
|
|
$
|
35.7
|
|
|
9.6
|
%
|
|
$
|
68.7
|
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Corporate/Eliminations
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
(22.1
|
)
|
|
|
|
$
|
(15.8
|
)
|
|
|
Gross profit
|
|
|
0.0
|
|
|
0.0
|
%
|
|
|
1.6
|
|
|
(10.1
|
%)
|
SG&A
|
|
|
9.0
|
|
|
(40.7
|
%)
|
|
|
10.8
|
|
|
(68.4
|
%)
|
Loss from operations
|
|
$
|
(9.0
|
)
|
|
40.7
|
%
|
|
$
|
(9.2
|
)
|
|
58.2
|
%
|
GLOSSARY
In an effort to provide investors with additional information regarding
the Company’s results, Terex refers to various GAAP (U.S. generally
accepted accounting principles) and non-GAAP financial measures which
management believes provides useful information to investors. These
non-GAAP measures may not be comparable to similarly titled measures
being disclosed by other companies. In addition, the Company believes
that non-GAAP financial measures should be considered in addition to,
and not in lieu of, GAAP financial measures.
Terex believes that this non-GAAP information is useful to understanding
its operating results and the ongoing performance of its underlying
businesses. Management of Terex uses both GAAP and non-GAAP financial
measures to establish internal budgets and targets and to evaluate the
Company’s financial performance against such budgets and targets.
The amounts described below are unaudited, are reported in millions of
U.S. dollars, and are as of or for the period ended March 31, 2009,
unless otherwise indicated.
Adjusted Net Operating Profit After Tax (NOPAT) is calculated by
multiplying Income from operations, as adjusted, by a figure equal to
one minus the adjusted effective tax rate of the Company. The adjusted
effective tax rate is equal to the (Provision for)/benefit from Income
taxes divided by Income before income taxes as adjusted for the
respective quarter.
Backlog is defined as firm orders that are expected to be filled
within one year. The disclosure of backlog aids in the analysis of the
Company’s customers’ demand for product, as well as the ability of the
Company to meet that demand. The backlog of Terex’s business is not
necessarily indicative of sales to be recognized in a specified future
period.
|
|
|
Mar 31,
2009
|
|
|
Mar 31,
2008
|
|
%
change
|
|
|
Dec 31,
2008
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Backlog
|
|
$
|
1,983.3
|
|
$
|
4,815.6
|
|
(58.8%)
|
|
$
|
2,955.6
|
|
(32.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AWP
|
|
$
|
148.9
|
|
$
|
794.5
|
|
(81.3%)
|
|
$
|
172.1
|
|
(13.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
143.3
|
|
$
|
913.5
|
|
(84.3%)
|
|
$
|
250.0
|
|
(42.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cranes
|
|
$
|
1,306.9
|
|
$
|
2,217.8
|
|
(41.1%)
|
|
$
|
1,937.8
|
|
(32.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPM
|
|
$
|
384.2
|
|
$
|
889.8
|
|
(56.8%)
|
|
$
|
595.7
|
|
(35.5%)
|
Days Payable Outstanding is calculated by dividing Trade accounts
payable by the product of the trailing three months Cost of goods sold
multiplied by four, which ratio is multiplied by 365 days.
Days Payable Outstanding
|
|
|
|
|
|
|
|
|
|
Mar 31, 2009
|
|
|
Dec 31, 2008
|
Trade Accounts Payable
|
|
$
|
647.5
|
|
$
|
983.9
|
|
|
|
|
|
|
|
Cost of sales for the three months ended
|
|
$
|
1,158.1
|
|
$
|
1,760.1
|
|
|
|
x 4
|
|
|
x 4
|
Annualized cost of sales
|
|
$
|
4,632.4
|
|
$
|
7,040.4
|
|
|
|
|
|
|
|
Quotient
|
|
|
0.1398
|
|
|
0.1398
|
|
|
|
x 365
|
|
|
x 365
|
Days Payable Outstanding
|
|
|
51 days
|
|
|
51 days
|
Days Sales Outstanding is calculated by dividing Trade
receivables by the trailing three months Net sales multiplied by four,
which ratio is multiplied by 365 days.
Days Sales Outstanding
|
|
|
|
|
|
|
|
|
|
Mar 31, 2009
|
|
|
Dec 31, 2008
|
Trade Accounts Receivable
|
|
$
|
701.8
|
|
$
|
967.5
|
|
|
|
|
|
|
|
Net sales for the three months ended
|
|
$
|
1,302.6
|
|
$
|
2,076.4
|
|
|
|
x 4
|
|
|
x 4
|
Annualized net sales
|
|
$
|
5,210.4
|
|
$
|
8,305.6
|
|
|
|
|
|
|
|
Quotient
|
|
|
0.1347
|
|
|
0.1165
|
|
|
|
x 365
|
|
|
x 365
|
Days Sales Outstanding
|
|
|
49 days
|
|
|
43 days
|
Debt is calculated using the Consolidated Balance Sheet amounts
for Notes payable and current portion of long-term debt plus Long-term
debt, less current portion. It is a measure that aids in the evaluation
of the Company’s financial condition.
Long term debt, less current portion
|
|
$1,445.2
|
Notes payable and current portion of long-term debt
|
|
37.6
|
|
|
|
Debt
|
|
$1,482.8
|
EBITDA is defined as earnings, before interest, taxes,
depreciation and amortization. The Company calculates this by adding the
amount of depreciation and amortization expenses that have been deducted
from income from operations back into income from operations to arrive
at EBITDA. Depreciation and amortization amounts reported in the
Consolidated Statement of Cash Flows include amortization of debt
issuance costs that are recorded in Other income (expense) - net and,
therefore, are not included in EBITDA. Terex believes that disclosure of
EBITDA will be helpful to those reviewing its performance, as EBITDA
provides information on Terex’s ability to meet debt service, capital
expenditure and working capital requirements, and is also an indicator
of profitability.
|
|
|
Three months ended
Mar 31,
|
|
|
|
2009
|
|
2008
|
(Loss) income from operations
|
|
$
|
(72.5)
|
$
|
256.3
|
Depreciation
|
|
|
19.3
|
|
17.2
|
Amortization
|
|
|
5.3
|
|
5.2
|
Bank fee amortization not included in (Loss) Income from operations
|
|
|
(0.9)
|
|
(0.8)
|
EBITDA
|
|
$
|
(48.8)
|
$
|
277.9
|
Gross Margin is defined as the ratio of Gross Profit to Net Sales.
Operating Margin is defined as the ratio of Income from
Operations to Net Sales.
Return on Invested Capital, or ROIC, is calculated by Terex by
dividing the sum of the last four quarters’ Adjusted Net Operating
Profit After Tax (as defined above) by the average of the sum of Total
Terex Corporation stockholders’ equity as adjusted plus Debt (as defined
above) less Cash and cash equivalents for the last five quarters ended
Consolidated Balance Sheets. ROIC is calculated by using the last four
quarters’ Adjusted NOPAT, as this represents the most recent twelve
month period at any given point of determination. In order for the
denominator of the ROIC ratio to properly match the operational period
reflected in the numerator, Terex includes the average of five quarters
ending balance sheet amounts so that the denominator includes the
average of the opening through ending balances (on a quarterly basis)
over the same time period as the numerator (four quarters of average
invested capital).
Terex management and the Board of Directors use ROIC as one of the
primary measures to assess operational performance, including in
connection with certain compensation programs. Terex utilizes ROIC as a
unifying metric because our management believes that it measures how
effectively we invest our capital and provides a better measure to
compare ourselves to peer companies to assist in assessing how we drive
operational improvement. ROIC measures return on the full
enterprise-wide amount of capital invested in our business, as opposed
to another metric such as return on Terex Corporation stockholders’
equity that only incorporates book equity, and is thus a more accurate
and descriptive measure of our performance. Terex also believes that
adding Debt less Cash and cash equivalents to Total Terex Corporation
stockholders’ equity provides a better comparison across similar
businesses regarding total capitalization, and that ROIC highlights the
level of value creation as a percentage of capital invested.
See reconciliation of adjusted amounts below on table following ROIC
table. Amounts are as of and for the three months ended for the periods
referenced in the table below.
|
|
|
Mar 09
|
|
|
Dec 08
|
|
|
Sep 08
|
|
|
Jun 08
|
|
|
Mar 08
|
(Benefit from) provision for income taxes as adjusted
|
|
$
|
(24.0
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
44.9
|
|
|
$
|
116.8
|
|
|
|
|
Divided by: Income before income taxes as adjusted
|
|
|
(98.5
|
)
|
|
|
37.0
|
|
|
|
139.4
|
|
|
|
353.8
|
|
|
|
|
Adjusted effective tax rate
|
|
|
24.4
|
%
|
|
|
(2.7
|
%)
|
|
|
32.2
|
%
|
|
|
33.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations as adjusted
|
|
|
(72.5
|
)
|
|
|
68.1
|
|
|
|
167.2
|
|
|
|
370.9
|
|
|
|
|
Multiplied by: 1 minus adjusted effective tax rate
|
|
|
75.6
|
%
|
|
|
102.7
|
%
|
|
|
67.8
|
%
|
|
|
67.0
|
%
|
|
|
|
Adjusted net operating profit after tax
|
|
$
|
(54.8
|
)
|
|
$
|
69.9
|
|
|
$
|
113.4
|
|
|
$
|
248.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (as defined above)
|
|
$
|
1,482.8
|
|
|
$
|
1,435.8
|
|
|
$
|
1,568.2
|
|
|
$
|
1,355.9
|
|
|
$
|
1,373.4
|
|
Less: Cash and cash equivalents
|
|
|
(344.3
|
)
|
|
|
(484.4
|
)
|
|
|
(487.9
|
)
|
|
|
(590.0
|
)
|
|
|
(604.2
|
)
|
Debt less Cash and cash equivalents
|
|
$
|
1,138.5
|
|
|
$
|
951.4
|
|
|
$
|
1,080.3
|
|
|
$
|
765.9
|
|
|
$
|
769.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Terex Corporation stockholders’ equity as adjusted
|
|
$
|
1,569.8
|
|
|
$
|
2,181.2
|
|
|
$
|
2,302.9
|
|
|
$
|
2,664.6
|
|
|
$
|
2,538.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt less Cash and cash equivalents plus Total Terex Corporation
stockholders’ equity as adjusted (Total capitalization)
|
|
$
|
2,708.3
|
|
|
$
|
3,132.6
|
|
|
$
|
3,383.2
|
|
|
$
|
3,430.5
|
|
|
$
|
3,307.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted NOPAT (4 qtrs)
|
|
$
|
377.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg Net Debt plus Equity (5 qtr ends)
|
|
$
|
3,192.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROIC
|
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Income from operations, effective tax rate and total
stockholders equity have been adjusted in the table above to
eliminate the goodwill impairment taken in the fourth quarter of
2008.
|
Reconciliation of the December 2008 Column (above) of ROIC
Adjusted for Goodwill Impairment, as of and for the three months
ended December 31, 2008.
|
|
|
|
Dec 2008
|
Loss before income taxes as reported
|
$
|
(422.9)
|
Goodwill impairment
|
|
(459.9)
|
Income before income taxes as adjusted
|
$
|
37.0
|
|
|
|
Benefit from income taxes as reported
|
$
|
2.7
|
Less benefit from income taxes on impairment
|
|
1.7
|
Benefit from income taxes as adjusted
|
$
|
1.0
|
|
|
|
Income before income taxes as adjusted
|
$
|
37.0
|
Benefit from income taxes as adjusted
|
|
1.0
|
Net income as adjusted
|
$
|
38.0
|
|
|
|
Loss from operations as reported
|
$
|
(391.8)
|
Goodwill impairment
|
|
(459.9)
|
Income from operations as adjusted
|
$
|
68.1
|
|
|
|
Total Terex Corporation stockholders' equity as reported
|
$
|
1,721.7
|
Less: Net loss as reported
|
|
(421.5)
|
Add: Net income as adjusted
|
|
38.0
|
Total Terex Corporation stockholders' equity as adjusted
|
$
|
2,181.2
|
Effective Tax Rate Reconciliation Excluding Impairment
|
|
|
|
Three months ended Dec 31, 2008
|
|
|
|
As Reported
|
|
|
Impairment
|
|
|
Excluding Impairment
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes
|
|
$
|
(422.9
|
)
|
|
$
|
(459.9
|
)
|
|
$
|
37.0
|
|
|
|
|
|
|
|
|
|
|
|
Benefit from (provision for) income taxes
|
|
|
2.7
|
|
|
|
1.7
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(420.2
|
)
|
|
|
|
|
$
|
38.0
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
0.6
|
%
|
|
|
0.4
|
%
|
|
|
(2.7
|
%)
|
Selling, General & Administrative expenses less Restructuring is
calculated by removing restructuring expenses that are included in
selling, general & administrative expenses.
|
|
Terex
Corporation
|
|
Terex
AWP
|
|
Terex
Construction
|
|
Terex
Cranes
|
|
Terex
MPM
|
|
|
Q1
2009
|
|
Q4
2008
|
|
Q1
2009
|
|
Q4
2008
|
|
Q1
2009
|
|
Q4
2008
|
|
Q1
2009
|
|
Q4
2008
|
|
Q1
2009
|
|
Q4
2008
|
SG&A
|
|
$
|
217.0
|
|
|
$
|
248.2
|
|
|
$
|
46.1
|
|
|
$
|
61.0
|
|
|
$
|
59.9
|
|
|
$
|
63.7
|
|
|
$
|
53.1
|
|
|
$
|
58.5
|
|
|
$
|
48.9
|
|
$
|
54.9
|
|
Less: Restructuring
|
|
|
(10.0
|
)
|
|
|
(6.4
|
)
|
|
|
(0.7
|
)
|
|
|
(3.4
|
)
|
|
|
(7.5
|
)
|
|
|
(1.7
|
)
|
|
|
(0.3
|
)
|
|
|
(0.2
|
)
|
|
|
-
|
|
|
(0.6
|
)
|
SG&A adjusted for restructuring
|
|
$
|
207.0
|
|
|
$
|
241.8
|
|
|
$
|
45.4
|
|
|
$
|
57.6
|
|
|
$
|
52.4
|
|
|
$
|
62.0
|
|
|
$
|
52.8
|
|
|
$
|
58.3
|
|
|
$
|
48.9
|
|
$
|
54.3
|
|
Total Capitalization is a measure that aids in the evaluation of
the Company’s balance sheet. It is an integral component of certain
financial metrics that are often used to evaluate the Company’s
valuation, liquidity and overall health. Total capitalization as of
March 31, 2009 is defined as the sum of:
-
Total Terex Corporation stockholders’ equity; and
-
Debt (as defined above);
-
Less: Cash and cash equivalents.
Total Terex Corporation stockholders' equity
|
|
$
|
1,569
|
.8
|
Debt (as defined above)
|
|
|
1,482
|
.8
|
Less: Cash and cash equivalents
|
|
|
(344
|
.3)
|
|
|
|
|
Total Capitalization
|
|
$
|
2,708
|
.3
|
Trailing Three Month Annualized Net Sales is calculated using the
net sales for the quarter multiplied by four.
First Quarter Net Sales
|
|
$
|
1,302
|
.6
|
x
|
|
|
4
|
|
Trailing Three Month Annualized Sales
|
|
$
|
5,210
|
.4
|
Working Capital is calculated using the Consolidated Balance
Sheet amounts for Trade receivables (net of allowance) plus Inventories
less Trade accounts payable. The Company views excessive working capital
as an inefficient use of resources, and seeks to minimize the level of
investment without adversely impacting the ongoing operations of the
business. As of March 31, 2009, working capital was:
Inventories
|
|
$
|
2,151.9
|
|
Trade Receivables, net
|
|
|
701.8
|
|
Less: Trade Accounts Payable
|
|
|
(647.5
|
)
|
Total Working Capital
|
|
$
|
2,206.2
|
|
Source: Terex Corporation
Tom Gelston, 203-222-5943
Vice President, Investor Relations
thomas.gelston@terex.com
or
Kurt
Goddard, 203-222-6160
Manager, Investor Relations
kurt.goddard@terex.com