WESTPORT, Conn.--(BUSINESS WIRE)--Feb. 15, 2012--
Terex Corporation (NYSE: TEX) today announced income from continuing
operations of $38.8 million, or $0.35 per share, on net sales of
$6,504.6 million for the full year 2011, as compared to a net loss from
continuing operations of $215.5 million, or $1.98 per share, on net
sales of $4,418.2 million for the full year 2010. Excluding the impact
of certain items in the full year 2011, income from continuing
operations as adjusted would have been approximately $51 million, or
$0.46 per share. Excluding the impact of certain items in the full year
2010, loss from continuing operations as adjusted would have been
approximately $140 million, or $1.29 per share. The Glossary at the end
of this press release contains further details regarding these items.
For the fourth quarter of 2011 loss from continuing operations was $4.0
million, or $0.03 per share, compared to a loss from continuing
operations of $32.5 million, or $0.30 per share for the fourth quarter
of 2010. Excluding the impact of certain items in the fourth quarter of
2011, income from continuing operations as adjusted would have been
approximately $28 million, or $0.26 per share. Excluding the impact of
certain items in the fourth quarter of 2010, loss from continuing
operations as adjusted would have been approximately $22 million, or
$0.20 per share. The Glossary at the end of this press release contains
further details regarding these items.
Net sales were $1,956.6 million in the fourth quarter of 2011, an
increase of 47.5% from $1,326.6 million in the fourth quarter of 2010.
Excluding the impact of the acquisition of Demag Cranes AG, net sales
increased approximately 20% from the comparable prior year period.
Income from operations was $32.0 million in the fourth quarter of 2011,
an improvement of $32.5 million as compared with a loss from operations
of $0.5 million in the fourth quarter of 2010. Excluding the impact of
certain items in the fourth quarter of 2011, income from operations
as adjusted would have been approximately $75 million. Excluding the
impact of certain items in the fourth quarter of 2010, income from
operations as adjusted would have been approximately $7 million. The
Glossary at the end of this press release contains further details
regarding these items.
All results are for continuing operations, unless stated otherwise.
Discontinued operations include the Mining, Atlas and Powertrain
businesses. Results for Demag Cranes AG are reported as the Material
Handling & Port Solutions (MHPS) segment. Income (loss) from continuing
operations reflects amounts attributable to Terex Corporation common
stockholders. Although the Company has completed substantially all of
its work on its tax provision, certain review procedures are still to be
completed prior to the filing of its Annual Report on Form 10-K. As a
result, while the Company believes the results contained in this release
are materially correct, certain amounts could be revised when the
Company files its Annual Report on Form 10-K. All per share amounts are
on a fully diluted basis.
“During 2011, we made significant investments and improvements and
implemented actions to set us on a course toward improved profitability
in 2012 and beyond,” said Ron DeFeo, Terex Chairman and Chief Executive
Officer. “We have seen further recovery in many of our end markets as
utilization rates improve and existing fleets age. This is consistent
with an overall improving construction and economic environment.
Emerging economies continue to grow most rapidly, along with solid
performance in North America. This has helped offset some of the
continuing weakness in several European markets.”
Mr. DeFeo continued, “The cost reduction initiatives during 2010 and
2011 have resulted in an improved cost structure as we begin 2012.
During this past year we fought to maintain and in many cases grew our
market shares resulting in increased production rates at many of our
facilities. Given the severity of the economic crisis in 2009 and 2010
in our product categories, re-establishing base production levels and
facility utilization rates were required to improve profitability. Our
ongoing goal is to establish a leaner, more customer responsive
organization. These efforts have allowed us to improve output with a
reduced manufacturing space of approximately 7%.
From a segment perspective, we continue to see recovery in most of our
end markets. In our Aerial Work Platforms (AWP) business, we see strong
demand and a growing backlog from a more diverse mix of customers. More
than half of our North American net sales for aerials came from smaller
independent rental customers in the fourth quarter of 2011. We also
expect margins to be meaningfully improved in 2012 as 2011 pricing
actions take hold.
Earlier in the year, our Cranes segment returned to profitability led by
a new management team and a leaner organization. Our port equipment
business began 2011 with significant losses but ended the year with a
modest fourth quarter profit and a strong backlog for 2012.
In our Materials Processing (MP) segment, we continue to see a
transition from static to mobile equipment with increasing demand from
small mines. While aggregate demand has weakened a bit, construction,
recycling and especially mining have sustained MP’s sales levels.
The MHPS business performed as expected since our acquisition on August
16, 2011.
The Construction segment continues to be our most challenging operation.
During the year, real progress was made but this business went through a
substantial transition with tier IV engine implementations, which
required substantial changes or updates depending on the individual
product and market. Our roadbuilding business continues to suffer from
weak end user demand and U.S. housing related products such as concrete
mixer trucks, while improving, remains significantly below expectations.
We believe we have now positioned the segment for profitability in 2012
and will be focusing on geographies and products where we have the
greatest profitability.”
Outlook
Mr. DeFeo added, “Turning now to our 2012 expectations, we see continued
demand for new equipment, and estimate that we are in the second year of
a multiple year recovery. Overall, our focus for 2012 will be on profit
improvement and cash generation as opposed to net sales growth. During
2011, net sales growth was important, as it provided us more consistent
run rates and we were able to solidify, if not improve our market
shares. In general, however, we were unable to offset increases from our
suppliers through pricing actions, which is common during the first year
of a recovery. We expect this will be different in 2012.
The following provides some insight into the drivers and expectations of
our 2012 performance by segment:
-
AWP – Our outlook is positive, with the North American rental channel
in a full replacement cycle and in need of new equipment. Operating
margin is expected to be in the 10% - 11% range for 2012, driven by
price realization and productivity enhancements.
-
Cranes – The outlook reflects the slightly weakened demand environment
for cranes in Europe, offset by anticipated continued growth in
markets that are experiencing recovery, such as North America and
Australia. Additionally, we expect that increasing demand from
developing markets, such as Latin America and the Middle East, will
continue. The combination of price increases implemented for 2012 and
restructuring activities enacted in 2011 are anticipated to enhance
overall profitability. We expect operating margins to be in the 5% -
6% range on steady sales.
-
MP – We anticipate continued strong sales performance in Australia and
South Africa, combined with improved pricing overall. We expect
operating margins of 10% - 11% on slightly higher sales.
-
MHPS – We expect improving sales trends, led by the services and the
port solutions businesses, specifically in North America, India and
the Middle East. With the Domination and Profit and Loss Transfer
Agreement yet to be effected, no integration benefits are included in
the outlook. We anticipate that operating margins will be in the 4.5%
- 5.5% range, including the impact of purchase accounting and
corporate allocation adjustments which are expected to comprise
approximately $60 million of expense during 2012.
-
Construction – Our focus will be on profitable products and markets.
We expect roadbuilding operations to continue to face challenges in
2012. Overall segment operating margin is expected to be in the range
of 2% - 3%.”
Mr. DeFeo concluded, “Overall, our current outlook for net sales in 2012
is $7.5 to $8.0 billion, an increase of 15 - 20% from 2011, and
approximately 5% excluding the impact of 2011 acquisitions. We expect
income from operations to be $475 to $525 million. As a result, we would
expect earnings per share (EPS) for 2012 to be approximately $1.65 to
$1.85 per share for the year based on an average share count of
approximately 116 million shares, excluding the impact of restructuring
and unusual items. The estimated average share count includes shares
that may be contingently issuable upon conversion of our outstanding
convertible notes. Our forecast assumes there is not a material
worsening of the European debt crisis. We also anticipate an effective
tax rate of approximately 38%. Interest expense for the year is forecast
to be approximately $145 million based on increased expense associated
with the term loans issued to partially fund the acquisition of Demag
Cranes AG. Other expense including amortization of debt issuance cost
and non-controlling interest is expected to be $20 - $25 million.
Capital expenditures for 2012 are expected to be approximately $140
million. We expect the ratio of our working capital to trailing three
months annualized sales to be approximately 25% at the end of 2012.”
Fourth Quarter Performance Review
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.
Aerial Work Platforms: Net sales for
the AWP segment for the fourth quarter of 2011 increased $94.6 million,
or 27.6%, to $437.4 million versus the fourth quarter of 2010. Rental
utilization rates and rental rates achieved by our customers continue to
increase in most regions and have been particularly strong in North
America. In addition, the Company has seen increased volume from
independent rental firms during the fourth quarter of 2011 and into
2012. Increases in fleet age have also led many rental companies to
replace equipment in their fleets. The Company also saw strong growth in
Europe as rental companies continued to replace machinery when needed as
their utilization has been good, and their rental rates have been
increasing but at a slower rate than in North America.
Income from operations in the fourth quarter of 2011 was $26.2 million,
or 6.0% of net sales, as compared to income from operations of $11.0
million, or 3.2% of net sales, during the fourth quarter of 2010.
Operating profit benefited from increased volumes and pricing, which
were partially offset by unfavorable product mix, increased component
and material costs, and a supplier quality campaign of approximately
$2.5 million.
Construction: Net sales for the
Construction segment for the fourth quarter of 2011 increased $92.8
million, or 29.3%, to $409.0 million versus the fourth quarter of 2010.
The increased sales were driven by continued demand in the developed
markets of North America and Europe, particularly for compact equipment
and material handlers in Germany. Sales growth in developing markets
during the quarter was most evident in Russia, Indonesia and South
Africa, largely for trucks and material handlers.
Loss from operations in the fourth quarter of 2011 was $2.8 million, or
0.7% of net sales, as compared to a loss from operations of $4.3
million, or 1.4% of net sales, during the fourth quarter of 2010.
Operating results were negatively impacted by continued soft demand for
roadbuilding equipment and the Company incurred charges to reduce
staffing to better align production with lower demand. Higher material
and component costs from various suppliers also negatively impacted
profitability.
Cranes: Net sales for the Cranes
segment for the fourth quarter of 2011 increased $44.6 million, or 8.1%,
to $593.7 million versus the fourth quarter of 2010. Strong demand for
rough terrain cranes in North America continued and our port equipment
businesses net sales grew more than 50% from the prior year period.
Additionally, the Company experienced strong demand for its pick and
carry crane product in Australia. Conversely, the Company has seen
reduced demand for crawler and all-terrain cranes in Europe.
Income from operations in the fourth quarter of 2011 was $10.8 million,
or 1.8% of net sales, as compared with income from operations of $15.7
million, or 2.9% of net sales, during the fourth quarter of 2010.
Operating results benefited from increased volumes and improved product
mix, as well as the restructuring activities that were taken earlier in
2011. Negatively impacting profitability in the fourth quarter of 2011
were expenses of $6.0 million for workforce reductions in Europe, a
charge of $7.7 million related to facility closures primarily in our
Port Equipment business and a charge for a supplier quality campaign of
$2.7 million.
Material Handling & Port Solutions: Net
sales for the MHPS segment for the fourth quarter of 2011 were $361.0
million. Net sales were driven by machine sales for industrial cranes
and mobile harbor cranes due to strong orders during earlier parts of
2011. Service and maintenance sales also contributed, as good capacity
utilization at customer plants led to an increased need for services.
Germany and the United States were the largest drivers of net sales in
the quarter, but Brazil, India and China also demonstrated considerable
strength.
Loss from operations was $16.6 million. These results included charges
of $22.1 million related to the step-up in the valuation of inventory at
the acquisition date of Demag Cranes AG. This was partially offset by
higher spare parts, service and maintenance revenue which generate
higher margins than new machine sales.
Materials Processing: Net sales for the MP
segment for the fourth quarter of 2011 increased $25.0 million, or
17.1%, to $170.8 million versus the fourth quarter of 2010. Mobile
equipment sales remained strong in Australia, South Africa and parts of
southern Asia and Latin America where mining activity drove increased
demand. This was partially offset by softness in crushing equipment in
Europe where demand has decreased in certain countries due to
difficulties obtaining financing for equipment.
Income from operations in the fourth quarter of 2011 was $14.6 million,
or 8.5% of net sales, compared to income from operations of $5.3
million, or 3.6% of net sales, during the fourth quarter of 2010.
Operating performance improved due to better absorption in 2011
associated with increased net sales volumes, the year-over-year
improvement related to the stabilization of MP’s start-up facility in
India, as well as proactive price management to keep pricing ahead of
commodity increases.
Corporate and Other / Eliminations: Loss
from operations of $0.2 million during the fourth quarter of 2011
improved by $28.0 million compared to the prior year period, mainly due
to the impact of a higher allocation of expenses to the business
segments.
Interest and Other Income (Expense):
Interest expense, net of interest income, in the fourth quarter of 2011
increased $1.6 million when compared to the fourth quarter of 2010,
primarily driven by increased interest expense associated with the Demag
Cranes AG acquisition, partially offset by reduced interest expense due
to the retirement of debt during the past year. Other income (expense)
declined by approximately $3.1 million from the prior year quarter. The
change was primarily driven by increases in foreign exchange losses in
the current year period.
Taxes: The effective tax rate for the
fourth quarter of 2011 was 59.3% as compared to an effective tax rate of
13.0% for the fourth quarter of 2010. As the Company had a loss from
continuing operations before income taxes, the Company received a
benefit from income taxes in the fourth quarter of 2011. The tax rate
recorded in the fourth quarter of 2011 compared favorably to statutory
tax rates mainly due to accrual to return results and resolution of
uncertain tax positions partially offset by losses not benefited for
income tax.
Capital Structure: The Company’s liquidity
at December 31, 2011 increased by approximately $66 million compared to
September 30, 2011 and totaled $1,270.2 million, which comprised cash
balances of $774.1 million and borrowing availability under the
Company’s revolving credit facilities of approximately $496 million.
These amounts include approximately $133 million of cash and
approximately $58 million of borrowing availability at Demag Cranes AG
that is available solely to support the Demag Cranes AG operations until
a Domination and Profit and Loss Transfer Agreement between the
companies becomes effective. Upon effectiveness of this agreement, the
Company will have the ability to pool cash generated by Demag Cranes AG
with other Terex cash so that this cash will be available to fund Terex
Group operations, including Demag Cranes AG.
Phil Widman, Terex’s Senior Vice President and Chief Financial Officer,
commented, “We generated free cash flow in the fourth quarter of
2011 of $168 million, which led to increased liquidity as compared to
September 30, 2011. This was below our expectations of $200 to $250
million principally due to higher working capital levels reflecting some
order intake softening in the Construction and Cranes segments
negatively impacting inventory levels carried over into 2012 and
increased demand in AWP which resulted in a higher level of receivables
and production.”
Return on Invested Capital (ROIC) was 3.7% for the
trailing twelve months ended December 31, 2011, reflecting the
relatively low operating income generated during the period and the
increase in invested capital for the acquisition of the Demag Cranes AG
business. Cash provided by operations in 2011 was approximately $19
million. For the comparable period in 2010, cash used in operations was
approximately $610 million. Debt, less cash and cash equivalents,
decreased approximately $105 million in the fourth quarter of 2011,
compared to the third quarter of 2011, to $1,526.3 million.
Working Capital: Working Capital as
a percent of Trailing Three Month Annualized Net Sales was 27.8%
at December 31, 2011, as compared to 31.8% at September 30, 2011 and
31.3% at the end of 2010. While falling somewhat short of 2011 working
capital expectations on a dollar basis, this percentage of sales was
largely in line with our plans. The Company is seeing positive results
in the execution of its production planning activities. The Company is
targeting its Working Capital as a percent of Trailing Three Month
Annualized Net Sales to be approximately 25% at the end of 2012.
Backlog: Backlog for orders
deliverable during the next twelve months was approximately $2,144
million at December 31, 2011, an increase of approximately 65% from
December 31, 2010 and essentially unchanged from September 30, 2011.
AWP segment backlog increased approximately 107% as compared to December
31, 2010 and increased approximately 15% as compared to September 30,
2011. Continued replacement of aging fleets was the primary driver of
the increase versus the prior periods. The developed markets made up the
majority of the order strength, particularly in North America and in
Australia where the Company has seen a significant increase in orders
due to energy infrastructure spending.
Construction segment backlog increased approximately 75% as compared to
December 31, 2010, but decreased approximately 12% as compared to
September 30, 2011. This increase over the prior year period was
primarily due to high demand for compact equipment and material handlers
in central Europe and backhoe loaders in Russia. Softening demand for
trucks was the primary driver of the sequential decrease.
Cranes segment backlog decreased approximately 7% as compared to
December 31, 2010 and decreased approximately 8% as compared to
September 30, 2011. Contributing to this decrease was softer order
growth in crawler and all terrain cranes, as well as the increased
deliveries in the fourth quarter of 2011.
MHPS backlog was approximately $468.5 million at December 31, 2011, an
increase of approximately 5% as compared to September 30, 2011.
Industrial cranes had a strong order book particularly in the standard
and process crane businesses primarily driven by increased customer
factory utilization. Port capacity and container traffic continued to be
strong and were the primary drivers of demand for mobile harbor cranes.
MP segment backlog increased approximately 3% compared to December 31,
2010, but decreased approximately 13% compared to September 30, 2011.
Mining activity continued to drive orders in emerging markets. This was
largely offset by softness in orders for mobile crushing products in
developed markets as some end customers chose to rent equipment as a
result of the macroeconomic uncertainty rather than place new orders.
Dealer inventory remains at historically low levels as confidence is yet
to return to end markets. Seasonality contributed to the lower
sequential backlog.
The Glossary contains further details regarding backlog.
Conference call
The Company will host a conference call to review the financial results
on Thursday, February 16, 2012 at 8:30 a.m. ET. Ronald M. DeFeo,
Chairman and CEO, will host the call. A simultaneous webcast of this
call will be available on the Company’s website, www.terex.com.
To listen to the call, select “Investor Relations” in the “About Terex”
section on the home page and then click on the webcast microphone link.
Participants are encouraged to access the call 10 minutes prior to the
starting time. The call will also be archived on the Company’s website
under “Audio Archives” in the “Investor Relations” section of the
website.
Forward-Looking Statements
This press release contains forward-looking information regarding future
events or the Company’s future financial performance based on the
current expectations of Terex Corporation. In addition, when included in
this press release, the words “may,” “expects,” “intends,”
“anticipates,” “plans,” “projects,” “estimates” and the negatives
thereof and analogous or similar expressions are intended to identify
forward-looking statements. However, the absence of these words does not
mean that the statement is not forward-looking. The Company has based
these forward-looking statements on current expectations and projections
about future events. These statements are not guarantees of future
performance.
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 affect the
sales of our products and financial results; our ability to successfully
integrate acquired businesses, including the recent acquisition of Demag
Cranes AG; our ability to access the capital markets to raise funds and
provide liquidity; our business is sensitive to government spending; our
business is very competitive and is affected by our cost structure,
pricing, product initiatives and other actions taken by competitors; the
effects of past operating losses; impairment in the carrying value of
goodwill and other indefinite-lived intangible assets; 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 providing
financing and credit support for some of our customers; we may
experience losses in excess of recorded reserves; impairment in the
carrying value of goodwill and other indefinite-lived intangible assets;
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 ability to generate
sufficient cash flow to service our debt obligations and operate our
business; our business is global and subject to changes in exchange
rates between currencies, regional economic conditions and trade
restrictions; our operations are subject to a number of potential risks,
including changing regulatory environments, the foreign corrupt
practices act and other similar laws and political instability; possible
work stoppages and other labor matters; compliance with changing laws
and regulations, particularly environmental and tax laws and
regulations; litigation, product liability claims, patent claims, class
action lawsuits and other liabilities; our ability to comply with an
injunction and related obligations resulting from the settlement of an
investigation by the United States Securities and Exchange Commission
(“SEC”); 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.
As a result of the final court decree in August 2009 that formalized the
settlement of an investigation of Terex by the SEC, for a period of
three years, or such earlier time as Terex is able to obtain a waiver
from the SEC, Terex cannot rely on the safe harbor provisions regarding
forward-looking statements provided by the regulations issued under the
Securities Exchange Act of 1934.
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.
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TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31,
|
|
|
Twelve Months
Ended December 31,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
|
Net sales
|
|
|
|
$
|
1,956.6
|
|
|
$
|
1,326.6
|
|
|
|
$
|
6,504.6
|
|
|
$
|
4,418.2
|
|
|
Cost of goods sold
|
|
|
|
|
(1,653.1
|
)
|
|
|
(1,141.0
|
)
|
|
|
|
(5,543.4
|
)
|
|
|
(3,815.3
|
)
|
|
Gross profit
|
|
|
|
|
303.5
|
|
|
|
185.6
|
|
|
|
|
961.2
|
|
|
|
602.9
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
(271.5
|
)
|
|
|
(186.1
|
)
|
|
|
|
(879.1
|
)
|
|
|
(676.7
|
)
|
|
Income (loss) from operations
|
|
|
|
|
32.0
|
|
|
|
(0.5
|
)
|
|
|
|
82.1
|
|
|
|
(73.8
|
)
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
6.0
|
|
|
|
3.9
|
|
|
|
|
14.3
|
|
|
|
9.8
|
|
|
Interest expense
|
|
|
|
|
(41.7
|
)
|
|
|
(38.0
|
)
|
|
|
|
(134.9
|
)
|
|
|
(145.4
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
|
-
|
|
|
|
(1.4
|
)
|
|
|
|
(7.7
|
)
|
|
|
(1.4
|
)
|
|
Amortization of debt issuance cost
|
|
|
|
|
(3.0
|
)
|
|
|
(2.8
|
)
|
|
|
|
(8.1
|
)
|
|
|
(7.9
|
)
|
|
Other income (expense) – net
|
|
|
|
|
(1.9
|
)
|
|
|
1.2
|
|
|
|
|
139.7
|
|
|
|
(19.6
|
)
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
|
(8.6
|
)
|
|
|
(37.6
|
)
|
|
|
|
85.4
|
|
|
|
(238.3
|
)
|
|
(Provision for) benefit from income taxes
|
|
|
|
|
5.1
|
|
|
|
4.9
|
|
|
|
|
(51.4
|
)
|
|
|
26.8
|
|
|
Income (loss) from continuing operations
|
|
|
|
|
(3.5
|
)
|
|
|
(32.7
|
)
|
|
|
|
34.0
|
|
|
|
(211.5
|
)
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
-
|
|
|
|
(8.2
|
)
|
|
|
|
5.8
|
|
|
|
(15.3
|
)
|
|
Gain (loss) on disposition of discontinued operations- net of tax
|
|
|
|
|
1.3
|
|
|
|
(4.6
|
)
|
|
|
|
0.8
|
|
|
|
589.3
|
|
|
Net income (loss)
|
|
|
|
|
(2.2
|
)
|
|
|
(45.5
|
)
|
|
|
|
40.6
|
|
|
|
362.5
|
|
|
Net (income) loss attributable to noncontrolling interest
|
|
|
|
|
(0.5
|
)
|
|
|
0.2
|
|
|
|
|
4.8
|
|
|
|
(4.0
|
)
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
(2.7
|
)
|
|
$
|
(45.3
|
)
|
|
|
$
|
45.4
|
|
|
$
|
358.5
|
|
|
Amounts attributable to Terex Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
|
(4.0
|
)
|
|
$
|
(32.5
|
)
|
|
|
|
38.8
|
|
|
$
|
(215.5
|
)
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
-
|
|
|
|
(8.2
|
)
|
|
|
|
5.8
|
|
|
|
(15.3
|
)
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
|
1.3
|
|
|
|
(4.6
|
)
|
|
|
|
0.8
|
|
|
|
589.3
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
(2.7
|
)
|
|
$
|
(45.3
|
)
|
|
|
$
|
45.4
|
|
|
$
|
358.5
|
|
|
Basic Earnings (loss) Per Share Attributable to Terex Corporation
Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.30
|
)
|
|
|
$
|
0.35
|
|
|
$
|
(1.98
|
)
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
-
|
|
|
|
(0.08
|
)
|
|
|
|
0.05
|
|
|
|
(0.14
|
)
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
|
0.01
|
|
|
|
(0.04
|
)
|
|
|
|
0.01
|
|
|
|
5.42
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.42
|
)
|
|
|
$
|
0.41
|
|
|
$
|
3.30
|
|
|
Diluted Earnings (loss) Per Share Attributable to Terex Corporation
Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.30
|
)
|
|
|
$
|
0.35
|
|
|
$
|
(1.98
|
)
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
-
|
|
|
|
(0.08
|
)
|
|
|
|
0.05
|
|
|
|
(0.14
|
)
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
|
0.01
|
|
|
|
(0.04
|
)
|
|
|
|
0.01
|
|
|
|
5.42
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.42
|
)
|
|
|
$
|
0.41
|
|
|
$
|
3.30
|
|
|
Weighted average number of shares outstanding in per share
calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
109.7
|
|
|
|
108.9
|
|
|
|
|
109.5
|
|
|
|
108.7
|
|
|
Diluted
|
|
|
|
|
109.7
|
|
|
|
108.9
|
|
|
|
|
110.7
|
|
|
|
108.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in millions, except par value)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
|
2011
|
|
|
|
2010
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
774.1
|
|
|
|
|
$
|
894.2
|
|
|
Investments in marketable securities
|
|
|
|
|
3.0
|
|
|
|
|
|
521.4
|
|
|
Trade receivables (net of allowance of $42.5 and $46.8 at December
31, 2011 and 2010, respectively)
|
|
|
|
|
1,178.1
|
|
|
|
|
|
782.5
|
|
|
Inventories
|
|
|
|
|
1,758.9
|
|
|
|
|
|
1,448.7
|
|
|
Deferred taxes
|
|
|
|
|
85.5
|
|
|
|
|
|
23.4
|
|
|
Other current assets
|
|
|
|
|
218.5
|
|
|
|
|
|
298.7
|
|
|
Total current assets
|
|
|
|
|
4,018.1
|
|
|
|
|
|
3,968.9
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment - net
|
|
|
|
|
835.5
|
|
|
|
|
|
573.5
|
|
|
Goodwill
|
|
|
|
|
1,265.6
|
|
|
|
|
|
492.9
|
|
|
Intangible assets – net
|
|
|
|
|
520.0
|
|
|
|
|
|
140.4
|
|
|
Deferred taxes
|
|
|
|
|
82.7
|
|
|
|
|
|
90.5
|
|
|
Other assets
|
|
|
|
|
353.3
|
|
|
|
|
|
250.2
|
|
|
Total assets
|
|
|
|
$
|
7,075.2
|
|
|
|
|
$
|
5,516.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable and current portion of long-term debt
|
|
|
|
$
|
77.0
|
|
|
|
|
$
|
346.8
|
|
|
Trade accounts payable
|
|
|
|
|
764.6
|
|
|
|
|
|
570.0
|
|
|
Accrued compensation and benefits
|
|
|
|
|
222.3
|
|
|
|
|
|
128.5
|
|
|
Accrued warranties and product liability
|
|
|
|
|
111.0
|
|
|
|
|
|
86.4
|
|
|
Customer advances
|
|
|
|
|
223.2
|
|
|
|
|
|
95.8
|
|
|
Income taxes payable
|
|
|
|
|
185.0
|
|
|
|
|
|
186.8
|
|
|
Other current liabilities
|
|
|
|
|
314.2
|
|
|
|
|
|
259.9
|
|
|
Total current liabilities
|
|
|
|
|
1,897.3
|
|
|
|
|
|
1,674.2
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
|
|
2,223.4
|
|
|
|
|
|
1,339.5
|
|
|
Retirement plans and other
|
|
|
|
|
344.6
|
|
|
|
|
|
155.0
|
|
|
Other non-current liabilities
|
|
|
|
|
420.9
|
|
|
|
|
|
236.3
|
|
|
Total liabilities
|
|
|
|
|
4,886.2
|
|
|
|
|
|
3,405.0
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par value – authorized 300.0 shares; issued 121.9
and 121.2 shares at December 31, 2011 and 2010, respectively
|
|
|
|
|
1.2
|
|
|
|
|
|
1.2
|
|
|
Additional paid-in capital
|
|
|
|
|
1,271.8
|
|
|
|
|
|
1,264.2
|
|
|
Retained earnings
|
|
|
|
|
1,362.1
|
|
|
|
|
|
1,316.7
|
|
|
Accumulated other comprehensive (loss) income
|
|
|
|
|
(124.8
|
)
|
|
|
|
|
100.4
|
|
|
Less cost of shares of common stock in treasury – 13.1 shares at
December 31, 2011 and 2010, respectively
|
|
|
|
|
(599.1
|
)
|
|
|
|
|
(599.3
|
)
|
|
Total Terex Corporation stockholders’ equity
|
|
|
|
|
1,911.2
|
|
|
|
|
|
2,083.2
|
|
|
Noncontrolling interest
|
|
|
|
|
277.8
|
|
|
|
|
|
28.2
|
|
|
Total stockholders’ equity
|
|
|
|
|
2,189.0
|
|
|
|
|
|
2,111.4
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
7,075.2
|
|
|
|
|
$
|
5,516.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited) (in millions)
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
|
|
|
2011
|
|
2010
|
Operating Activities of Continuing Operations
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
40.6
|
|
|
$
|
362.5
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities of continuing operations:
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
(6.6
|
)
|
|
|
(574.0
|
)
|
Depreciation and amortization
|
|
|
|
|
126.6
|
|
|
|
104.8
|
|
Deferred taxes
|
|
|
|
|
(3.7
|
)
|
|
|
108.0
|
|
Gain on sale of assets
|
|
|
|
|
(173.5
|
)
|
|
|
(3.3
|
)
|
Stock-based compensation expense
|
|
|
|
|
23.4
|
|
|
|
34.9
|
|
Changes in operating assets and liabilities (net of effects of
acquisitions and divestitures):
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
|
|
(181.2
|
)
|
|
|
(215.1
|
)
|
Inventories
|
|
|
|
|
(26.9
|
)
|
|
|
(194.2
|
)
|
Trade accounts payable
|
|
|
|
|
64.6
|
|
|
|
36.1
|
|
Other, net
|
|
|
|
|
155.8
|
|
|
|
(269.8
|
)
|
Net cash provided by (used in) operating activities of continuing
operations
|
|
|
|
|
19.1
|
|
|
|
(610.1
|
)
|
Investing Activities of Continuing Operations
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(79.1
|
)
|
|
|
(55.0
|
)
|
Acquisitions of business net of cash acquired
|
|
|
|
|
(1,035.2
|
)
|
|
|
(12.8
|
)
|
Investments in and advances to affiliates
|
|
|
|
|
-
|
|
|
|
(19.3
|
)
|
Proceeds from disposition of discontinued operations
|
|
|
|
|
0.5
|
|
|
|
1,002.0
|
|
Investments in derivative securities
|
|
|
|
|
(16.1
|
)
|
|
|
(21.1
|
)
|
Proceeds from sale of assets
|
|
|
|
|
539.6
|
|
|
|
10.0
|
|
Other investing activities, net
|
|
|
|
|
(2.2
|
)
|
|
|
-
|
|
Net cash (used in) provided by investing activities of continuing
operations
|
|
|
|
|
(592.5
|
)
|
|
|
903.8
|
|
Financing Activities of Continuing Operations
|
|
|
|
|
|
|
|
|
Principal repayments of debt
|
|
|
|
|
(444.2
|
)
|
|
|
(365.5
|
)
|
Proceeds from issuance of debt
|
|
|
|
|
926.7
|
|
|
|
73.9
|
|
Payment of debt issuance costs
|
|
|
|
|
(26.6
|
)
|
|
|
(7.8
|
)
|
Purchase of noncontrolling interest
|
|
|
|
|
(6.3
|
)
|
|
|
(12.9
|
)
|
Distributions to noncontrolling interest
|
|
|
|
|
-
|
|
|
|
(3.4
|
)
|
Other financing activities, net
|
|
|
|
|
4.6
|
|
|
|
-
|
|
Net cash provided by (used in) financing activities of continuing
operations
|
|
|
|
|
454.2
|
|
|
|
(315.7
|
)
|
Cash Flows From Discontinued Operations
|
|
|
|
|
|
|
|
|
Net cash used in operating activities of discontinued operations
|
|
|
|
|
-
|
|
|
|
(53.1
|
)
|
Net cash provided by investing activities of discontinued operations
|
|
|
|
|
-
|
|
|
|
0.1
|
|
Net cash used in financing activities of discontinued operations
|
|
|
|
|
-
|
|
|
|
-
|
|
Net cash used in discontinued operations
|
|
|
|
|
-
|
|
|
|
(53.0
|
)
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
|
|
(0.9
|
)
|
|
|
(2.0
|
)
|
Net Decrease in Cash and Cash Equivalents
|
|
|
|
|
(120.1
|
)
|
|
|
(77.0
|
)
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
|
|
894.2
|
|
|
|
971.2
|
|
Cash and Cash Equivalents at End of Period
|
|
|
|
$
|
774.1
|
|
|
$
|
894.2
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS DISCLOSURE
(unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
|
Year-to-Date
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
% of
Net Sales
|
|
|
|
|
% of
Net Sales
|
|
|
|
|
|
% of
Net Sales
|
|
|
|
|
% of
Net Sales
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
1,956.6
|
|
|
|
|
|
$
|
1,326.6
|
|
|
|
|
|
|
$
|
6,504.6
|
|
|
|
|
|
$
|
4,418.2
|
|
|
|
|
Gross profit
|
|
|
|
|
303.5
|
|
|
15.5
|
%
|
|
|
|
185.6
|
|
|
14.0
|
%
|
|
|
|
|
961.2
|
|
|
14.8
|
%
|
|
|
|
602.9
|
|
|
13.6
|
%
|
|
SG&A
|
|
|
|
|
271.5
|
|
|
13.9
|
%
|
|
|
|
186.1
|
|
|
14.0
|
%
|
|
|
|
|
879.1
|
|
|
13.5
|
%
|
|
|
|
676.7
|
|
|
15.3
|
%
|
|
Income (loss) from operations
|
|
|
|
$
|
32.0
|
|
|
1.6
|
%
|
|
|
$
|
(0.5
|
)
|
|
0.0
|
%
|
|
|
|
$
|
82.1
|
|
|
1.3
|
%
|
|
|
$
|
(73.8
|
)
|
|
(1.7
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AWP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
437.4
|
|
|
|
|
|
$
|
342.8
|
|
|
|
|
|
|
$
|
1,750.0
|
|
|
|
|
|
$
|
1,076.3
|
|
|
|
|
Gross profit
|
|
|
|
|
80.3
|
|
|
18.4
|
%
|
|
|
|
51.8
|
|
|
15.1
|
%
|
|
|
|
|
278.3
|
|
|
15.9
|
%
|
|
|
|
147.7
|
|
|
13.7
|
%
|
|
SG&A
|
|
|
|
|
54.1
|
|
|
12.4
|
%
|
|
|
|
40.8
|
|
|
11.9
|
%
|
|
|
|
|
192.0
|
|
|
11.0
|
%
|
|
|
|
144.9
|
|
|
13.5
|
%
|
|
Income from operations
|
|
|
|
$
|
26.2
|
|
|
6.0
|
%
|
|
|
$
|
11.0
|
|
|
3.2
|
%
|
|
|
|
$
|
86.3
|
|
|
4.9
|
%
|
|
|
$
|
2.8
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
409.0
|
|
|
|
|
|
$
|
316.2
|
|
|
|
|
|
|
$
|
1,505.6
|
|
|
|
|
|
$
|
1,081.2
|
|
|
|
|
Gross profit
|
|
|
|
|
44.2
|
|
|
10.8
|
%
|
|
|
|
32.3
|
|
|
10.2
|
%
|
|
|
|
|
163.1
|
|
|
10.8
|
%
|
|
|
|
91.9
|
|
|
8.5
|
%
|
|
SG&A
|
|
|
|
|
47.0
|
|
|
11.5
|
%
|
|
|
|
36.6
|
|
|
11.6
|
%
|
|
|
|
|
181.5
|
|
|
12.1
|
%
|
|
|
|
143.9
|
|
|
13.3
|
%
|
|
Loss from operations
|
|
|
|
$
|
(2.8
|
)
|
|
(0.7
|
%)
|
|
|
$
|
(4.3
|
)
|
|
(1.4
|
%)
|
|
|
|
$
|
(18.4
|
)
|
|
(1.2
|
%)
|
|
|
$
|
(52.0
|
)
|
|
(4.8
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cranes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
593.7
|
|
|
|
|
|
$
|
549.1
|
|
|
|
|
|
|
$
|
1,999.7
|
|
|
|
|
|
$
|
1,780.6
|
|
|
|
|
Gross profit
|
|
|
|
|
75.3
|
|
|
12.7
|
%
|
|
|
|
75.0
|
|
|
13.7
|
%
|
|
|
|
|
251.2
|
|
|
12.6
|
%
|
|
|
|
268.5
|
|
|
15.1
|
%
|
|
SG&A
|
|
|
|
|
64.5
|
|
|
10.9
|
%
|
|
|
|
59.3
|
|
|
10.8
|
%
|
|
|
|
|
271.0
|
|
|
13.6
|
%
|
|
|
|
235.0
|
|
|
13.2
|
%
|
|
Income (loss) from operations
|
|
|
|
$
|
10.8
|
|
|
1.8
|
%
|
|
|
$
|
15.7
|
|
|
2.9
|
%
|
|
|
|
$
|
(19.8
|
)
|
|
(1.0
|
%)
|
|
|
$
|
33.5
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MHPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
361.0
|
|
|
|
|
|
$
|
-
|
|
|
-
|
|
|
|
|
$
|
617.0
|
|
|
|
|
|
$
|
-
|
|
|
-
|
|
|
Gross profit
|
|
|
|
|
64.2
|
|
|
17.8
|
%
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
112.0
|
|
|
18.2
|
%
|
|
|
|
-
|
|
|
-
|
|
|
SG&A
|
|
|
|
|
80.8
|
|
|
22.4
|
%
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
131.2
|
|
|
21.3
|
%
|
|
|
|
-
|
|
|
-
|
|
|
Loss from operations
|
|
|
|
$
|
(16.6
|
)
|
|
(4.6
|
%)
|
|
|
$
|
-
|
|
|
-
|
|
|
|
|
$
|
(19.2
|
)
|
|
(3.1
|
%)
|
|
|
$
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
170.8
|
|
|
|
|
|
$
|
145.8
|
|
|
|
|
|
|
$
|
682.8
|
|
|
|
|
|
$
|
533.1
|
|
|
|
|
Gross profit
|
|
|
|
|
31.6
|
|
|
18.5
|
%
|
|
|
|
25.4
|
|
|
17.4
|
%
|
|
|
|
|
136.7
|
|
|
20.0
|
%
|
|
|
|
90.7
|
|
|
17.0
|
%
|
|
SG&A
|
|
|
|
|
17.0
|
|
|
10.0
|
%
|
|
|
|
20.1
|
|
|
13.8
|
%
|
|
|
|
|
76.3
|
|
|
11.2
|
%
|
|
|
|
66.2
|
|
|
12.4
|
%
|
|
Income from operations
|
|
|
|
$
|
14.6
|
|
|
8.5
|
%
|
|
|
$
|
5.3
|
|
|
3.6
|
%
|
|
|
|
$
|
60.4
|
|
|
8.8
|
%
|
|
|
$
|
24.5
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate/Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
$
|
(15.3
|
)
|
|
|
|
|
$
|
(27.3
|
)
|
|
|
|
|
|
$
|
(50.5
|
)
|
|
|
|
|
$
|
(53.0
|
)
|
|
|
|
Gross profit
|
|
|
|
|
7.9
|
|
|
(51.6
|
%)
|
|
|
|
1.1
|
|
|
(4.0
|
%)
|
|
|
|
|
19.9
|
|
|
(39.4
|
%)
|
|
|
|
4.1
|
|
|
(7.7
|
%)
|
|
SG&A
|
|
|
|
|
8.1
|
|
|
(52.9
|
%)
|
|
|
|
29.3
|
|
|
(107.3
|
%)
|
|
|
|
|
27.1
|
|
|
(53.7
|
%)
|
|
|
|
86.7
|
|
|
(163.6
|
%)
|
|
Loss from operations
|
|
|
|
$
|
(0.2
|
)
|
|
1.3
|
%
|
|
|
$
|
(28.2
|
)
|
|
103.3
|
%
|
|
|
|
$
|
(7.2
|
)
|
|
14.3
|
%
|
|
|
$
|
(82.6
|
)
|
|
155.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
As changes in foreign currency exchange rates have a non-operating
impact on our financial results, we believe excluding the effect of
these changes assists in the assessment of our business results between
periods. We calculate the translation effect of foreign currency
exchange rate changes by translating the current period results at the
rates that the comparable prior periods were translated to isolate the
foreign exchange component of the fluctuation from the operational
component. Similarly, the impact of changes in our results from
acquisitions that were not included in comparable prior periods is
subtracted from the absolute change in results to allow for better
comparability of results between periods.
The amounts described below are unaudited, are reported in millions of
U.S. dollars (except per share data and percentages), and are as of or
for the period ended December 31, 2011, unless otherwise indicated.
After-tax gains or expense and per share amounts are calculated
using pre-tax amounts, applying a tax rate based on normal
jurisdictional rates to arrive at an after-tax amount. This number is
divided by the weighted average diluted shares to provide the impact on
earnings per share. The Company assesses the impact of these items
because when providing guidance on earnings per share, the Company
adjusts for items it believes are not reflective of operating activities
in the periods.
Fourth Quarter 2011
|
|
|
|
|
Pre-Tax
|
|
|
Tax Rate
|
|
|
After-Tax
|
|
|
EPS*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition inventory step-up amortization
|
|
|
|
|
$
|
(22.1
|
)
|
|
|
30.7%
|
|
|
$
|
(15.3
|
)
|
|
|
$
|
(0.14
|
)
|
|
Supplier quality issues
|
|
|
|
|
|
(5.2
|
)
|
|
|
35.8%
|
|
|
|
(3.3
|
)
|
|
|
|
(0.03
|
)
|
|
Restructuring and related items
|
|
|
|
|
|
(15.6
|
)
|
|
|
**
|
|
|
|
(12.9
|
)
|
|
|
|
(0.12
|
)
|
|
Total EPS Effect
|
|
|
|
|
$
|
(42.9
|
)
|
|
|
|
|
|
$
|
(31.5
|
)
|
|
|
|
(0.29
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on weighted average diluted shares of 109.7 M
** Based on jurisdictional blend
|
|
|
|
Fourth Quarter 2010
|
|
|
|
Pre-Tax
|
|
|
Tax Rate
|
|
|
After-Tax
|
|
|
EPS*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative mark to market
|
|
|
|
$
|
(4.5
|
)
|
|
|
36.0%
|
|
|
$
|
(2.9
|
)
|
|
|
$
|
(0.03
|
)
|
|
Unusual legal expenses
|
|
|
|
|
(4.1
|
)
|
|
|
28.0%
|
|
|
|
(3.0
|
)
|
|
|
|
(0.03
|
)
|
|
Debt retirement
|
|
|
|
|
(4.0
|
)
|
|
|
36.0%
|
|
|
|
(2.6
|
)
|
|
|
|
(0.02
|
)
|
|
Restructuring and related items
|
|
|
|
|
(4.6
|
)
|
|
|
**
|
|
|
|
(3.0
|
)
|
|
|
|
(0.03
|
)
|
|
Provision for foreign duty
|
|
|
|
|
1.7
|
|
|
|
34.0%
|
|
|
|
1.1
|
|
|
|
|
0.01
|
|
|
Total EPS Effect
|
|
|
|
$
|
(15.5
|
)
|
|
|
|
|
|
$
|
(10.4
|
)
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on weighted average diluted shares of 108.9 M
** Based on jurisdictional blend
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2011
|
|
|
|
Pre-Tax
|
|
|
Tax Rate
|
|
|
After-Tax
|
|
|
EPS*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related costs (incl. step-up)
|
|
|
|
$
|
(74.4
|
)
|
|
|
**
|
|
|
$
|
(55.8
|
)
|
|
|
$
|
(0.50
|
)
|
|
Supplier quality issues
|
|
|
|
|
(5.2
|
)
|
|
|
35.8%
|
|
|
|
(3.3
|
)
|
|
|
|
(0.03
|
)
|
|
Restructuring and related items
|
|
|
|
|
(63.5
|
)
|
|
|
**
|
|
|
|
(54.3
|
)
|
|
|
|
(0.49
|
)
|
|
Gain on sale of BUCY shares
|
|
|
|
|
167.8
|
|
|
|
35.8%
|
|
|
|
107.7
|
|
|
|
|
0.97
|
|
|
Debt – early extinguishment
|
|
|
|
|
(7.7
|
)
|
|
|
35.8%
|
|
|
|
(4.9
|
)
|
|
|
|
(0.04
|
)
|
|
Other
|
|
|
|
|
0.9
|
|
|
|
**
|
|
|
|
(1.8
|
)
|
|
|
|
(0.02
|
)
|
|
Total EPS Effect
|
|
|
|
$
|
17.9
|
|
|
|
|
|
|
$
|
(12.4
|
)
|
|
|
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on weighted average diluted shares of 108.9 M
** Based on jurisdictional blend
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2010
|
|
|
|
Pre-Tax
|
|
|
Tax Rate
|
|
|
After-Tax
|
|
|
EPS*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and related items
|
|
|
|
$
|
(30.8
|
)
|
|
|
**
|
|
|
$
|
(20.6
|
)
|
|
|
$
|
(0.19
|
)
|
|
Mark to market derivatives related to BUCY
|
|
|
|
|
(21.5
|
)
|
|
|
36.0%
|
|
|
|
(13.8
|
)
|
|
|
|
(0.13
|
)
|
|
Debt- early extinguishment
|
|
|
|
|
(4.0
|
)
|
|
|
36.0%
|
|
|
|
(2.6
|
)
|
|
|
|
(0.02
|
)
|
|
Other
|
|
|
|
|
3.6
|
|
|
|
**
|
|
|
|
2.8
|
|
|
|
|
0.03
|
|
|
Tax impacts
|
|
|
|
|
-
|
|
|
|
N/A
|
|
|
|
(41.2
|
)
|
|
|
|
(0.38
|
)
|
|
Total EPS Effect
|
|
|
|
$
|
(52.7
|
)
|
|
|
|
|
|
$
|
(75.4
|
)
|
|
|
|
(0.69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Based on weighted average diluted shares of 108.9 M
** Based on jurisdictional blend
|
|
|
|
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 the various Terex businesses
is not necessarily indicative of sales to be recognized in a specified
future period.
|
|
|
|
|
Dec 31,
2011
|
|
|
|
Dec 31,
2010
|
|
|
%
change
|
|
|
|
Sept 30,
2011
|
|
|
%
change
|
Consolidated Backlog
|
|
|
|
$
|
2,143.5
|
|
|
$
|
1,298.0
|
|
|
65%
|
|
|
$
|
2,144.0
|
|
|
-
|
AWP
|
|
|
|
$
|
634.8
|
|
|
$
|
307.0
|
|
|
107%
|
|
|
$
|
550.7
|
|
|
15%
|
Construction
|
|
|
|
$
|
243.1
|
|
|
$
|
139.0
|
|
|
75%
|
|
|
$
|
275.9
|
|
|
(12%)
|
Cranes
|
|
|
|
$
|
716.3
|
|
|
$
|
773.8
|
|
|
(7%)
|
|
|
$
|
776.6
|
|
|
(8%)
|
MHPS
|
|
|
|
$
|
468.5
|
|
|
$
|
-
|
|
|
n/a
|
|
|
$
|
448.1
|
|
|
5%
|
MP
|
|
|
|
$
|
80.8
|
|
|
$
|
78.2
|
|
|
3%
|
|
|
$
|
92.7
|
|
|
(13%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31, 2011
|
|
|
|
Sept 30, 2011
|
Trade Accounts Payable
|
|
|
|
|
$
|
764.6
|
|
|
|
$
|
804.6
|
Adjusted Cost of goods sold for the three months ended
|
|
|
|
|
|
1,653.1
|
|
|
|
|
1,736.2^
|
|
|
|
|
|
|
x 4
|
|
|
|
|
x 4
|
Annualized cost of goods sold
|
|
|
|
|
$
|
6,612.4
|
|
|
|
$
|
6,944.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Quotient
|
|
|
|
|
|
0.1156
|
|
|
|
|
0.1158
|
|
|
|
|
|
|
X 365 days
|
|
|
|
|
X 365 days
|
Days Payable Outstanding
|
|
|
|
|
|
42 days
|
|
|
|
|
42 days
|
^ Demag Cranes’ AG Cost of Goods Sold of $208.2M was doubled for these
calculations to approximate a three month period.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31, 2011
|
|
|
|
Sept 30, 2011
|
Trade Receivables
|
|
|
|
|
$
|
1,178.1
|
|
|
|
$
|
1,202.3
|
Adjusted Net sales for the three months ended
|
|
|
|
|
|
1,956.6
|
|
|
|
|
2,059.6^
|
|
|
|
|
|
|
x 4
|
|
|
|
|
x 4
|
Annualized net sales
|
|
|
|
|
$
|
7,826.4
|
|
|
|
$
|
8,238.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Quotient
|
|
|
|
|
|
0.1505
|
|
|
|
|
0.1459
|
|
|
|
|
|
|
x 365 days
|
|
|
|
|
x 365 days
|
Days Sales Outstanding
|
|
|
|
|
|
55 days
|
|
|
|
|
53 days
|
^ Demag Cranes’ AG Net Sales of $256.0M was doubled for these
calculations to approximate a three month period.
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.
|
|
|
|
|
|
|
Dec 31, 2011
|
|
Long term debt, less current portion
|
|
|
|
|
|
|
$
|
2,223.4
|
|
Notes payable and current portion of long-term debt
|
|
|
|
|
|
|
|
77.0
|
|
Debt
|
|
|
|
|
|
|
$
|
2,300.4
|
|
|
|
|
|
|
|
|
|
|
|
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
December 31,
|
|
|
Twelve months ended
December 31,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
2011
|
|
2010
|
|
Income (loss) from operations
|
|
|
|
$
|
32.0
|
|
|
$
|
(0.5
|
)
|
|
|
$
|
82.1
|
|
|
$
|
(73.8
|
)
|
|
Depreciation
|
|
|
|
|
22.5
|
|
|
|
22.6
|
|
|
|
|
89.5
|
|
|
|
78.6
|
|
|
Amortization
|
|
|
|
|
14.8
|
|
|
|
7.9
|
|
|
|
|
37.1
|
|
|
|
26.2
|
|
|
Bank fee amortization not included in Income (loss) from operations
|
|
|
|
|
(3.0
|
)
|
|
|
(2.8
|
)
|
|
|
|
(8.1
|
)
|
|
|
(7.9
|
)
|
|
EBITDA
|
|
|
|
$
|
66.3
|
|
|
$
|
27.2
|
|
|
|
$
|
200.6
|
|
|
$
|
23.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is defined as income from operations plus
depreciation and amortization, proceeds from the sale of fixed assets,
inventory step-up amortization, asset impairment, plus or minus changes
in working capital, customer advances and rental/demo equipment and less
capital expenditures.
|
|
|
|
|
|
Three months ended
Dec 31, 2011
|
|
|
|
Income from operations
|
|
|
|
|
|
$
|
32.0
|
|
|
|
|
Asset impairment
|
|
|
|
|
|
|
7.1
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
37.3
|
|
|
|
|
Proceeds from sale of fixed assets
|
|
|
|
|
|
|
2.6
|
|
|
|
|
Changes in working capital
|
|
|
|
|
|
|
94.1
|
|
|
|
|
Customer advances
|
|
|
|
|
|
|
11.0
|
|
|
|
|
Rental/demo equipment
|
|
|
|
|
|
|
(0.5
|
)
|
|
|
|
Capital expenditures
|
|
|
|
|
|
|
(15.5
|
)
|
|
|
|
Free cash flow
|
|
|
|
|
|
$
|
168.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations as adjusted
|
|
|
|
|
|
|
Three months ended Dec 31,
|
|
|
|
|
|
|
|
2011
|
|
|
|
2010
|
Income (loss) from operations as reported
|
|
|
|
|
|
$
|
32.0
|
|
|
|
$
|
(0.5
|
)
|
Supplier quality issues
|
|
|
|
|
|
|
5.2
|
|
|
|
|
-
|
|
Restructuring and related items
|
|
|
|
|
|
|
15.6
|
|
|
|
|
4.6
|
|
Acquisition-related amortization
|
|
|
|
|
|
|
22.1
|
|
|
|
|
-
|
|
Unusual legal fees
|
|
|
|
|
|
|
-
|
|
|
|
|
4.1
|
|
Other Items
|
|
|
|
|
|
|
-
|
|
|
|
|
(1.7
|
)
|
Income from operations as adjusted
|
|
|
|
|
|
$
|
74.9
|
|
|
|
$
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory Turns and Days: Inventory Turns is calculated by
dividing annualized cost of sales by the inventory balance. Days
inventory is calculated by dividing 365 days by the inventory turns
result.
Inventory Turns and Days
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31, 2011
|
|
|
|
Sept 30, 2011
|
Inventory
|
|
|
|
|
|
$
|
1,758.9
|
|
|
|
$
|
1,893.5
|
Adjusted Cost of goods sold for the three months ended
|
|
|
|
|
|
|
1,653.1
|
|
|
|
|
1,736.2^
|
|
|
|
|
|
|
|
x 4
|
|
|
|
|
x 4
|
Annualized cost of sales
|
|
|
|
|
|
$
|
6,612.4
|
|
|
|
$
|
6,944.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
365 days/
|
|
|
|
|
365 days/
|
Inventory turns
|
|
|
|
|
|
|
3.76 x
|
|
|
|
|
3.67 x
|
Days Inventory
|
|
|
|
|
|
|
97 days
|
|
|
|
|
100 days
|
^ Demag Cranes’ AG Cost of Goods Sold of $208.2M was doubled for
these calculations to approximate a three month period.
Operating Margin is defined as the ratio of Income (Loss) from
Operations to Net Sales.
Return on Invested Capital (“ROIC”) is determined by dividing the
sum of Net Operating Profit After Tax (“NOPAT”) (as defined below) for
each of the previous four quarters by the average of the sum of Total
stockholders’ equity plus Debt (as defined above) less Cash and cash
equivalents for the previous five quarters. NOPAT, which is a non-GAAP
measure, for each quarter is calculated by multiplying Income (loss)
from continuing and discontinued operations by a figure equal to one
minus the effective tax rate of the Company. The Company believes that
earnings from discontinued operations, as well as the net assets that
comprise those operations’ invested capital, should be included in this
calculation because it captures the financial returns on its capital
allocation decisions for the measured periods. Furthermore, the Company
believes that returns on capital deployed in Terex Financial Services
(“TFS”) do not represent management of the Company’s primary operations
and, therefore, TFS finance receivable assets and results of operations
have been excluded from the calculation below. Additionally, the Company
does not believe that the deferred gain on marketable securities and
specifically the shares of Bucyrus (“BUCY shares”), held from the sale
of our Mining business, is reflective of its ongoing operations and has
been excluded from the calculation below. The effective tax rate is
equal to the (Provision for) benefit from income taxes divided by Income
(loss) before income taxes for the respective quarter. The Company
calculates ROIC using the last four quarters’ 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, the Company 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 and in connection
with certain compensation programs. Terex utilizes ROIC as a unifying
metric because management believes that it measures how effectively the
Company invests its capital and provides a better measure to compare the
Company to peer companies to assist in assessing how it drives
operational improvement. ROIC measures return on the amount of capital
invested in the Company’s primary businesses, excluding TFS, 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 the Company’s 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.
|
|
|
|
Dec ‘11
|
|
|
Sept ‘11
|
|
|
Jun ‘11
|
|
|
Mar ‘11
|
|
|
Dec ‘10
|
|
Provision for (benefit from) income taxes as adjusted
|
|
|
$
|
(5.1
|
)
|
|
$
|
7.0
|
|
|
$
|
2.5
|
|
|
$
|
(18.8
|
)
|
|
|
|
|
Divided by: Loss before income taxes as adjusted
|
|
|
|
(8.6
|
)
|
|
|
(8.9
|
)
|
|
|
(23.6
|
)
|
|
|
(41.4
|
)
|
|
|
|
|
Effective tax rate as adjusted
|
|
|
|
59.3
|
%
|
|
|
(78.7
|
%)
|
|
|
(10.6
|
%)
|
|
|
45.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) income from operations as adjusted
|
|
|
$
|
31.6
|
|
|
$
|
53.1
|
|
|
$
|
7.1
|
|
|
$
|
(8.2
|
)
|
|
|
|
|
Multiplied by: 1 minus Effective tax rate as adjusted
|
|
|
|
40.7
|
%
|
|
|
178.7
|
%
|
|
|
110.6
|
%
|
|
|
54.6
|
%
|
|
|
|
|
Adjusted net operating income (loss) after tax
|
|
|
$
|
12.9
|
|
|
$
|
94.9
|
|
|
$
|
7.9
|
|
|
$
|
(4.5
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (as defined above)
|
|
|
$
|
2,300.4
|
|
|
$
|
2,316.6
|
|
|
$
|
1,426.5
|
|
|
$
|
1,417.1
|
|
|
$
|
1,686.3
|
|
|
Less: Cash and cash equivalents
|
|
|
|
(774.1
|
)
|
|
|
(684.9
|
)
|
|
|
(702.0
|
)
|
|
|
(723.7
|
)
|
|
|
(894.2
|
)
|
|
Debt less Cash and cash equivalents
|
|
|
$
|
1,526.3
|
|
|
$
|
1,631.7
|
|
|
$
|
724.5
|
|
|
$
|
693.4
|
|
|
$
|
792.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Terex Corporation stockholders’ equity as adjusted
|
|
|
$
|
1,786.3
|
|
|
$
|
1,854.4
|
|
|
$
|
1,999.3
|
|
|
$
|
1,998.6
|
|
|
$
|
1,907.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt less Cash and cash equivalents plus Total
Terex Corporation stockholders’ equity as adjusted
|
|
|
$
|
3,312.6
|
|
|
$
|
3,486.1
|
|
|
$
|
2,723.8
|
|
|
$
|
2,692.0
|
|
|
$
|
2,699.3
|
|
|
December 31, 2011 ROIC
|
|
|
|
|
|
|
|
3.7%
|
|
Adjusted net operating income (loss) after tax (last 4 quarters)
|
|
|
|
|
|
$
|
|
111.1
|
|
Average Debt less Cash and cash equivalents plus Total Terex
Corporation stockholders’ equity as adjusted (5 quarters)
|
|
|
|
|
|
$
|
|
2,982.8
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Loss before income taxes:
|
|
|
|
Three
months
ended
12/31/11
|
|
Three
months
ended
9/30/11
|
|
Three
months
ended
6/30/11
|
|
Three
months
ended
3/31/11
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
(8.6
|
)
|
|
$
|
67.3
|
|
|
$
|
16.5
|
|
|
$
|
10.2
|
|
|
|
|
Less: Gain realized on sale of BUCY shares
|
|
|
|
-
|
|
|
|
(76.2
|
)
|
|
|
(40.0
|
)
|
|
|
(51.6
|
)
|
|
|
|
Loss from discontinued operations before income taxes
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
|
Loss before income taxes as adjusted
|
|
|
$
|
(8.6
|
)
|
|
$
|
(8.9
|
)
|
|
$
|
(23.6
|
)
|
|
$
|
(41.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of income (loss) from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations as reported
|
|
|
$
|
32.0
|
|
|
$
|
52.6
|
|
|
$
|
6.8
|
|
|
$
|
(9.3
|
)
|
|
|
|
Income (loss) from operations for TFS
|
|
|
|
(0.4
|
)
|
|
|
0.5
|
|
|
|
0.4
|
|
|
|
1.1
|
|
|
|
|
Loss from operations for discontinued operations
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.1
|
)
|
|
|
-
|
|
|
|
|
Income (loss) from operations as adjusted
|
|
|
$
|
31.6
|
|
|
$
|
53.1
|
|
|
$
|
7.1
|
|
|
$
|
(8.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Provision for (Benefit from) income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit from) income taxes as reported
|
|
|
$
|
(5.1
|
)
|
|
$
|
34.2
|
|
|
$
|
16.3
|
|
|
$
|
6.0
|
|
|
|
|
Provision for income taxes on realized gain for sale of BUCY shares
|
|
|
|
-
|
|
|
|
(27.2
|
)
|
|
|
(14.3
|
)
|
|
|
(18.4
|
)
|
|
|
|
Provision for (benefit from) income taxes for discontinued operations
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.5
|
|
|
|
(6.4
|
)
|
|
|
|
Provision for (benefit from) income taxes as adjusted
|
|
|
$
|
(5.1
|
)
|
|
$
|
7.0
|
|
|
$
|
2.5
|
|
|
$
|
(18.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Terex Corporation stockholders’ equity:
|
|
|
|
As of
12/31/11
|
|
As of
9/30/11
|
|
As of
6/30/11
|
|
As of
3/31/11
|
|
As of
12/31/10
|
Terex Corporation stockholders’ equity as reported
|
|
|
$
|
1,911.3
|
|
|
$
|
1,991.7
|
|
|
$
|
2,178.2
|
|
|
$
|
2,157.9
|
|
|
$
|
2,083.2
|
|
TFS assets
|
|
|
|
(124.6
|
)
|
|
|
(138.0
|
)
|
|
|
(127.5
|
)
|
|
|
(85.4
|
)
|
|
|
(76.2
|
)
|
Deferred (gain) loss on marketable securities
|
|
|
|
(0.3
|
)
|
|
|
0.7
|
|
|
|
(51.4
|
)
|
|
|
(73.9
|
)
|
|
|
(99.8
|
)
|
Terex Corporation stockholders’ equity as adjusted
|
|
|
$
|
1,786.3
|
|
|
$
|
1,854.4
|
|
|
$
|
1,999.3
|
|
|
$
|
1,998.6
|
|
|
$
|
1,907.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
December 31, 2011 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
|
|
|
|
|
|
$
|
|
|
1,911.2
|
|
|
Debt (as defined above)
|
|
|
|
|
|
|
|
|
2,300.4
|
|
|
Less: Cash and cash equivalents
|
|
|
|
|
|
|
|
|
(774.1
|
)
|
|
Total Capitalization
|
|
|
|
|
|
$
|
|
|
3,437.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Three Month Annualized Net Sales is calculated using the
net sales for the quarter multiplied by four.
|
|
|
|
|
Terex
|
|
|
|
Demag
Cranes AG
|
|
|
|
Ex Demag
Cranes AG
|
Fourth Quarter Net Sales
|
|
|
|
$
|
1,956.6
|
|
|
$
|
361.0
|
|
|
$
|
1,595.6
|
x
|
|
|
|
|
4
|
|
|
|
|
|
|
|
4
|
Trailing Three Month Annualized Net Sales
|
|
|
|
$
|
7,826.4
|
|
|
|
|
|
|
$
|
6,382.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, 2011, working capital was:
|
|
|
|
|
Terex
|
|
|
|
Demag
Cranes AG
|
|
|
|
Ex Demag
Cranes AG
|
|
Inventories
|
|
|
|
|
$
|
1,758.9
|
|
|
|
|
$
|
298.5
|
|
|
|
|
$
|
1,460.4
|
|
|
Trade Receivables
|
|
|
|
|
|
1,178.1
|
|
|
|
|
|
244.7
|
|
|
|
|
|
933.4
|
|
|
Less: Trade Accounts Payable
|
|
|
|
|
|
(764.6
|
)
|
|
|
|
|
(127.7
|
)
|
|
|
|
|
(636.9
|
)
|
|
Total Working Capital
|
|
|
|
|
$
|
2,172.4
|
|
|
|
|
$
|
415.5
|
|
|
|
|
$
|
1,756.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943
Vice President,
Investor Relations
thomas.gelston@terex.com