WESTPORT, Conn.--(BUSINESS WIRE)--Feb. 18, 2014--
Terex Corporation (NYSE:TEX) today announced income from continuing
operations of $209.0 million, or $1.79 per share, on net sales of $7.1
billion for the full year 2013, as compared to income from continuing
operations of $77.0 million, or $0.68 per share, on net sales of $7.0
billion for the full year 2012. Excluding certain items, income from
continuing operations as adjusted for the full year 2013 was $261.2
million or $2.23 per share compared to $179.5 million or $1.58 per share
in 2012. The Glossary at the end of this press release contains further
details regarding these items and all per share amounts are on a fully
diluted basis.
For the fourth quarter of 2013 income from continuing operations was
$84.8 million, or $0.72 per share, on net sales of $1.8 billion,
compared to a loss from continuing operations of $33.2 million, or $0.30
per share, on net sales of $1.6 billion, for the fourth quarter of 2012.
Excluding certain items, income from continuing operations as adjusted
was $76.8 million, or $0.65 per share in 2013 compared to $19.4 million,
or $0.17 per share in 2012.
“Overall, 2013 was a good year and I am pleased with the improvements
and progress underway at Terex,” commented Ron DeFeo, Terex Chairman and
CEO. “This past year was a tale of two halves, with the second half of
the year significantly stronger than the first half. Our performance in
the second half was fueled by the continued strength of our Aerial Work
Platforms (AWP) segment and a turnaround in our Materials Handling &
Port Solutions (MHPS) segment. Our focus throughout the year on
strengthening margins and driving financial efficiency helped deliver a
strong close to the year.
“Operationally, our AWP segment is continuing to benefit from strong
North American rental channel demand plus a noticeable pickup in Latin
America and European performance. Additionally, the Materials Processing
(MP) segment performance remains solid, delivering double digit
operating margin in 2013 despite a relatively soft demand environment.
These business segments performed well in 2013 and we expect even better
performance in 2014. The remaining three segments did not meet our
expectations in 2013. However, we have made good progress with the
integration of our MHPS segment and we expect continued progress in
2014. The pending sale of our off highway truck business results in a
smaller and more focused Construction portfolio. We have confidence we
can improve the financial profile of this segment going forward. Lastly,
our Cranes segment failed to realize the growth that we had anticipated
entering 2013. While new product launches did provide some growth,
markets such as Australia, Europe and Latin America were more
challenging than anticipated.”
Mr. DeFeo continued, “During 2013, we made investments and implemented
actions to set us on a course toward increased profitability in 2014 and
beyond. We enter 2014 with optimism around our businesses and
expectations to deliver improved financial results. Much of this
optimism stems from our continued focus on internal areas of
improvement, such as our capital structure initiatives and business
simplification, as well as the year over year benefits anticipated from
the restructuring efforts undertaken in 2013.”
Outlook
The Company expects 2014 earnings per share to be between $2.50 and
$2.80 (excluding restructuring and other unusual items) on net sales of
between $7.3 billion and $7.7 billion.
Mr. DeFeo commented, “Our 2014 guidance reflects the benefits of
internal cost initiatives, capital structure improvements and some
anticipated net sales growth. The guidance is for continuing operations,
and as such excludes the earnings associated with the off-highway truck
business due to its impending sale. We see some signs of improvement in
many parts of the world although this is tempered with some continued
market uncertainty, particularly in developing markets. Overall, we
believe that the global economy will be stronger in 2014, but still
modest when viewed against historic demand levels.”
Capital Structure: The Company’s liquidity
at December 31, 2013 decreased by approximately $30 million compared to
September 30, 2013 and totaled $736.2 million, which comprised cash of
$408.1 million and borrowing availability under the Company’s revolving
credit facilities of $328.1 million. The decrease was mainly due to
investments in capital expenditures and the repurchase of Terex Common
Stock during the quarter. Debt, less cash and cash equivalents,
increased approximately $148 million to $1,568.6 million compared to
December 31, 2012 primarily as a result of the purchase of minority
shares of Terex Material Handling & Port Solutions AG.
Kevin Bradley, Terex Senior Vice President and Chief Financial Officer,
commented, “One of our main focuses is improving our financial
efficiency. During 2013 and into early 2014 we have taken a couple of
steps forward in this area. Over the past 12 months we have reduced our
debt and also lowered the interest rates on our term loans, yielding a
meaningful reduction in interest expense from 2012. In January 2014, we
completed the squeeze out of the remaining outstanding minority shares
of Terex Material Handling & Port Solutions AG, and now have attained
100% ownership. This simplifies our capital structure by eliminating the
obligation to make guaranteed payments to the minority shareholders and
also removes the complexity and financial cost of maintaining the entity
as a German public company.”
Mr. Bradley continued, “We are pleased that these positive steps have
enabled us to be in a position where we can begin to return a portion of
our cash flow to our shareholders on a regular basis. We initiated a
quarterly dividend and also announced a share repurchase program of up
to $200 million. During the fourth quarter we began to take action under
this program, purchasing approximately 0.8 million shares for
approximately $30 million. Overall, we are pleased with the evolution of
our capital structure and shareholder returns, and will continue to
focus on cash flow generation throughout 2014.”
Return on Invested Capital (ROIC) was 8.1% for the period ended December
31, 2013.
Taxes: The effective tax rate was 21.0% for
the fourth quarter of 2013 and 30.0% for the full year as compared to an
effective tax rate of 22.6% for the fourth quarter of 2012 and 40.8% for
the full year.
Working Capital: Working Capital as
a percent of Trailing Three Month Annualized Net Sales was 24.8%
at December 31, 2013, as compared to 26.9% at December 31, 2012.
Backlog: Backlog for orders
deliverable during the next twelve months was approximately $1,828
million at December 31, 2013, an increase of approximately 1.8% from
September 30, 2013 and a decrease of approximately 7.5% from December
31, 2012. The majority of the year over year decline was related to AWP
backlog, driven by the timing of orders received from one of our larger
rental customers, and lower demand for Crane products. This was
partially offset by existing large port equipment orders for MHPS, which
are now deliverable in the next twelve months. The Glossary contains
further details regarding backlog.
Discontinued Operations: The results of the
off-highway rigid and articulated haul trucks business are classified as
Discontinued Operations in the financial statements.
In this press release, Terex refers to various GAAP (U.S. generally
accepted accounting principles) an 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 the text or the Glossary at the end of this press release.
Conference call
The Company has scheduled a one-hour conference call to review the
financial results on Wednesday, February 19, 2014, 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 Terex Material Handling & Port
Solutions AG; 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 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; our ability to
timely manufacture and deliver products to customers; 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 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 compliance with changing regulatory
environments, the Foreign Corrupt Practices Act and other similar laws
and political instability; a material disruption to one of our
significant facilities; 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.
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
(www.terex.com)
and its Facebook page (www.facebook.com/TerexCorporation)
to make information available to its investors and the market.
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
(in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
|
|
|
Twelve Months
|
|
|
|
|
Ended December 31,
|
|
|
Ended December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Net sales
|
|
|
|
$
|
1,811.8
|
|
|
$
|
1,619.8
|
|
|
|
$
|
7,084.0
|
|
|
$
|
6,982.2
|
|
|
Cost of goods sold
|
|
|
|
|
(1,426.1
|
)
|
|
|
(1,319.8
|
)
|
|
|
|
(5,644.5
|
)
|
|
|
(5,582.1
|
)
|
|
Gross profit
|
|
|
|
|
385.7
|
|
|
|
300.0
|
|
|
|
|
1,439.5
|
|
|
|
1,400.1
|
|
|
Selling, general and administrative expenses
|
|
|
|
|
(254.3
|
)
|
|
|
(277.0
|
)
|
|
|
|
(1,020.4
|
)
|
|
|
(1,033.3
|
)
|
|
Income (loss) from operations
|
|
|
|
|
131.4
|
|
|
|
23.0
|
|
|
|
|
419.1
|
|
|
|
366.8
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
1.7
|
|
|
|
2.4
|
|
|
|
|
6.7
|
|
|
|
8.8
|
|
|
Interest expense
|
|
|
|
|
(29.5
|
)
|
|
|
(34.6
|
)
|
|
|
|
(126.1
|
)
|
|
|
(164.6
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
|
---
|
|
|
|
(30.7
|
)
|
|
|
|
(5.2
|
)
|
|
|
(83.0
|
)
|
|
Amortization of debt issuance costs
|
|
|
|
|
(2.2
|
)
|
|
|
(2.3
|
)
|
|
|
|
(8.5
|
)
|
|
|
(9.6
|
)
|
|
Other income (expense) – net
|
|
|
|
|
4.6
|
|
|
|
1.5
|
|
|
|
|
5.3
|
|
|
|
7.9
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
|
106.0
|
|
|
|
(40.7
|
)
|
|
|
|
291.3
|
|
|
|
126.3
|
|
|
(Provision for) benefit from income taxes
|
|
|
|
|
(22.3
|
)
|
|
|
9.2
|
|
|
|
|
(87.4
|
)
|
|
|
(51.5
|
)
|
|
Income (loss) from continuing operations
|
|
|
|
|
83.7
|
|
|
|
(31.5
|
)
|
|
|
|
203.9
|
|
|
|
74.8
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
1.6
|
|
|
|
1.8
|
|
|
|
|
14.4
|
|
|
|
28.4
|
|
|
Gain (loss) on disposition of discontinued operations- net of tax
|
|
|
|
|
---
|
|
|
|
(1.9
|
)
|
|
|
|
2.6
|
|
|
|
0.4
|
|
|
Net income (loss)
|
|
|
|
|
85.3
|
|
|
|
(31.6
|
)
|
|
|
|
220.9
|
|
|
|
103.6
|
|
|
Net (income) loss attributable to noncontrolling interest
|
|
|
|
|
1.1
|
|
|
|
(1.7
|
)
|
|
|
|
5.1
|
|
|
|
2.2
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
86.4
|
|
|
$
|
(33.3
|
)
|
|
|
$
|
226.0
|
|
|
$
|
105.8
|
|
|
Amounts attributable to Terex Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
84.8
|
|
|
$
|
(33.2
|
)
|
|
|
$
|
209.0
|
|
|
$
|
77.0
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
1.6
|
|
|
|
1.8
|
|
|
|
|
14.4
|
|
|
|
28.4
|
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
|
---
|
|
|
|
(1.9
|
)
|
|
|
|
2.6
|
|
|
|
0.4
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
86.4
|
|
|
$
|
(33.3
|
)
|
|
|
$
|
226.0
|
|
|
$
|
105.8
|
|
|
Basic Earnings (Loss) Per Share Attributable to Terex Corporation
Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
0.76
|
|
|
$
|
(0.30
|
)
|
|
|
$
|
1.88
|
|
|
$
|
0.70
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
|
0.13
|
|
|
|
0.26
|
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
|
---
|
|
|
|
(0.02
|
)
|
|
|
|
0.02
|
|
|
|
---
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
0.78
|
|
|
$
|
(0.30
|
)
|
|
|
$
|
2.03
|
|
|
$
|
0.96
|
|
|
Diluted Earnings (Loss) Per Share Attributable to Terex
Corporation Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
0.72
|
|
|
$
|
(0.30
|
)
|
|
|
$
|
1.79
|
|
|
$
|
0.68
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
|
0.12
|
|
|
|
0.25
|
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
|
---
|
|
|
|
(0.02
|
)
|
|
|
|
0.02
|
|
|
|
---
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
|
$
|
0.74
|
|
|
$
|
(0.30
|
)
|
|
|
$
|
1.93
|
|
|
$
|
0.93
|
|
|
Weighted average number of shares outstanding in per share
calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
111.3
|
|
|
|
110.5
|
|
|
|
|
111.1
|
|
|
|
110.3
|
|
|
Diluted
|
|
|
|
|
117.4
|
|
|
|
110.5
|
|
|
|
|
117.0
|
|
|
|
113.9
|
|
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(unaudited)
(in millions, except par value)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
|
December 31,
2012
|
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
408.1
|
|
|
|
$
|
678.0
|
|
|
Trade receivables (net of allowance of $47.6 and $38.5 at December
31, 2013 and 2012, respectively)
|
|
|
|
1,176.8
|
|
|
|
|
1,026.6
|
|
|
Inventories
|
|
|
|
1,613.2
|
|
|
|
|
1,632.2
|
|
|
Other current assets
|
|
|
|
312.0
|
|
|
|
|
319.6
|
|
|
Current assets – discontinued operations
|
|
|
|
129.3
|
|
|
|
|
141.0
|
|
|
Total current assets
|
|
|
|
3,639.4
|
|
|
|
|
3,797.4
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
Property, plant and equipment – net
|
|
|
|
789.4
|
|
|
|
|
806.8
|
|
|
Goodwill
|
|
|
|
1,245.6
|
|
|
|
|
1,245.3
|
|
|
Intangible assets – net
|
|
|
|
444.8
|
|
|
|
|
474.4
|
|
|
Other assets
|
|
|
|
401.9
|
|
|
|
|
410.8
|
|
|
Non-current assets – discontinued operations
|
|
|
|
15.6
|
|
|
|
|
11.5
|
|
|
Total assets
|
|
|
$
|
6,536.7
|
|
|
|
$
|
6,746.2
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Notes payable and current portion of long-term debt
|
|
|
$
|
86.8
|
|
|
|
$
|
83.8
|
|
|
Trade accounts payable
|
|
|
|
689.1
|
|
|
|
|
600.2
|
|
|
Accrued compensation and benefits
|
|
|
|
234.3
|
|
|
|
|
224.0
|
|
|
Accrued warranties and product liability
|
|
|
|
96.2
|
|
|
|
|
92.1
|
|
|
Customer advances
|
|
|
|
302.1
|
|
|
|
|
312.9
|
|
|
Other current liabilities
|
|
|
|
270.1
|
|
|
|
|
348.5
|
|
|
Current liabilities – discontinued operations
|
|
|
|
46.1
|
|
|
|
|
47.3
|
|
|
Total current liabilities
|
|
|
|
1,724.7
|
|
|
|
|
1,708.8
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
|
1,889.9
|
|
|
|
|
2,014.9
|
|
|
Retirement plans
|
|
|
|
388.2
|
|
|
|
|
430.7
|
|
|
Other non-current liabilities
|
|
|
|
259.5
|
|
|
|
|
308.0
|
|
|
Non-current liabilities – discontinued operations
|
|
|
|
5.7
|
|
|
|
|
5.6
|
|
|
Total liabilities
|
|
|
|
4,268.0
|
|
|
|
|
4,468.0
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
|
|
53.9
|
|
|
|
|
246.9
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
Common stock, $.01 par value – authorized 300.0 shares; issued
123.7 and 122.9 shares at December 31, 2013 and 2012, respectively
|
|
|
|
1.2
|
|
|
|
|
1.2
|
|
|
Additional paid-in capital
|
|
|
|
1,247.5
|
|
|
|
|
1,260.7
|
|
|
Retained earnings
|
|
|
|
1,688.1
|
|
|
|
|
1,467.7
|
|
|
Accumulated other comprehensive (loss) income
|
|
|
|
(116.5
|
)
|
|
|
|
(124.1
|
)
|
|
Less cost of shares of common stock in treasury – 13.8 and 13.0
shares at December 31, 2013 and 2012, respectively
|
|
|
|
(630.2
|
)
|
|
|
|
(597.8
|
)
|
|
Total Terex Corporation stockholders’ equity
|
|
|
|
2,190.1
|
|
|
|
|
2,007.7
|
|
|
Noncontrolling interest
|
|
|
|
24.7
|
|
|
|
|
23.6
|
|
|
Total stockholders’ equity
|
|
|
|
2,214.8
|
|
|
|
|
2,031.3
|
|
|
Total liabilities, redeemable noncontrolling interest and
stockholders’ equity
|
|
|
$
|
6,536.7
|
|
|
|
$
|
6,746.2
|
|
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited) (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
|
|
|
|
2013
|
|
|
2012
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
220.9
|
|
|
|
$
|
103.6
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
152.3
|
|
|
|
|
153.0
|
|
|
Changes in operating assets and liabilities (net of effects of
acquisitions and divestitures):
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
|
|
(153.1
|
)
|
|
|
|
122.5
|
|
|
Inventories
|
|
|
|
|
(70.4
|
)
|
|
|
|
(55.0
|
)
|
|
Trade accounts payable
|
|
|
|
|
86.9
|
|
|
|
|
(126.3
|
)
|
|
Customer advances
|
|
|
|
|
(16.5
|
)
|
|
|
|
97.1
|
|
|
Other, net
|
|
|
|
|
(31.6
|
)
|
|
|
|
(2.6
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
|
|
188.5
|
|
|
|
|
292.3
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
|
(82.8
|
)
|
|
|
|
(82.5
|
)
|
|
Other investing activities, net
|
|
|
|
|
45.4
|
|
|
|
|
6.2
|
|
|
Net cash (used in) provided by investing activities
|
|
|
|
|
(37.4
|
)
|
|
|
|
(76.3
|
)
|
|
Financing Activities
|
|
|
|
|
(420.1
|
)
|
|
|
|
(323.3
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
|
|
(420.1
|
)
|
|
|
|
(323.3
|
)
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
|
|
(0.9
|
)
|
|
|
|
11.2
|
|
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
|
|
(269.9
|
)
|
|
|
|
(96.1
|
)
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
|
|
678.0
|
|
|
|
|
774.1
|
|
|
Cash and Cash Equivalents at End of Period
|
|
|
|
$
|
408.1
|
|
|
|
$
|
678.0
|
|
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS DISCLOSURE
(unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Year-to-Date
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
% of
Net Sales
|
|
|
|
% of
Net Sales
|
|
|
|
|
% of
Net Sales
|
|
|
|
% of
Net Sales
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
1,811.8
|
|
|
|
|
$
|
1,619.8
|
|
|
|
|
|
$
|
7,084.0
|
|
|
|
|
$
|
6,982.2
|
|
|
|
|
Gross profit
|
|
|
|
385.7
|
|
|
21.3
|
%
|
|
|
300.0
|
|
|
18.5
|
%
|
|
|
|
1,439.5
|
|
|
20.3
|
%
|
|
|
1,400.1
|
|
|
20.1
|
%
|
|
SG&A
|
|
|
|
254.3
|
|
|
14.0
|
%
|
|
|
277.0
|
|
|
17.1
|
%
|
|
|
|
1,020.4
|
|
|
14.4
|
%
|
|
|
1,033.3
|
|
|
14.8
|
%
|
|
Income from operations
|
|
|
$
|
131.4
|
|
|
7.3
|
%
|
|
$
|
23.0
|
|
|
1.4
|
%
|
|
|
$
|
419.1
|
|
|
5.9
|
%
|
|
$
|
366.8
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AWP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
482.0
|
|
|
|
|
$
|
368.3
|
|
|
|
|
|
$
|
2,131.0
|
|
|
|
|
$
|
1,742.4
|
|
|
|
|
Gross profit
|
|
|
|
121.8
|
|
|
25.3
|
%
|
|
|
80.5
|
|
|
21.9
|
%
|
|
|
|
514.9
|
|
|
24.2
|
%
|
|
|
381.2
|
|
|
21.9
|
%
|
|
SG&A
|
|
|
|
50.3
|
|
|
10.4
|
%
|
|
|
44.8
|
|
|
12.2
|
%
|
|
|
|
189.1
|
|
|
8.9
|
%
|
|
|
170.3
|
|
|
9.8
|
%
|
|
Income from operations
|
|
|
$
|
71.5
|
|
|
14.8
|
%
|
|
$
|
35.7
|
|
|
9.7
|
%
|
|
|
$
|
325.8
|
|
|
15.3
|
%
|
|
$
|
210.9
|
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
193.5
|
|
|
|
|
$
|
190.7
|
|
|
|
|
|
$
|
820.0
|
|
|
|
|
$
|
952.1
|
|
|
|
|
Gross profit
|
|
|
|
24.0
|
|
|
12.4
|
%
|
|
|
(5.6
|
)
|
|
(2.9
|
%)
|
|
|
|
83.2
|
|
|
10.1
|
%
|
|
|
68.2
|
|
|
7.2
|
%
|
|
SG&A
|
|
|
|
24.0
|
|
|
12.4
|
%
|
|
|
42.8
|
|
|
22.4
|
%
|
|
|
|
108.0
|
|
|
13.2
|
%
|
|
|
137.5
|
|
|
14.4
|
%
|
|
Loss from operations
|
|
|
$
|
0.0
|
|
|
0.0
|
%
|
|
$
|
(48.4
|
)
|
|
(25.4
|
%)
|
|
|
$
|
(24.8
|
)
|
|
(3.0
|
%)
|
|
$
|
(69.3
|
)
|
|
(7.3
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cranes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
480.4
|
|
|
|
|
$
|
511.2
|
|
|
|
|
|
$
|
1,925.5
|
|
|
|
|
$
|
1,987.6
|
|
|
|
|
Gross profit
|
|
|
|
84.3
|
|
|
17.5
|
%
|
|
|
113.6
|
|
|
22.2
|
%
|
|
|
|
337.1
|
|
|
17.5
|
%
|
|
|
393.6
|
|
|
19.8
|
%
|
|
SG&A
|
|
|
|
58.6
|
|
|
12.2
|
%
|
|
|
59.7
|
|
|
11.7
|
%
|
|
|
|
226.6
|
|
|
11.8
|
%
|
|
|
225.6
|
|
|
11.4
|
%
|
|
Income from operations
|
|
|
$
|
25.7
|
|
|
5.3
|
%
|
|
$
|
53.9
|
|
|
10.5
|
%
|
|
|
$
|
110.5
|
|
|
5.7
|
%
|
|
$
|
168.0
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MHPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
528.9
|
|
|
|
|
$
|
416.3
|
|
|
|
|
|
$
|
1,698.5
|
|
|
|
|
$
|
1,742.1
|
|
|
|
|
Gross profit
|
|
|
|
117.0
|
|
|
22.1
|
%
|
|
|
73.3
|
|
|
17.6
|
%
|
|
|
|
345.4
|
|
|
20.3
|
%
|
|
|
386.7
|
|
|
22.2
|
%
|
|
SG&A
|
|
|
|
91.0
|
|
|
17.2
|
%
|
|
|
96.5
|
|
|
23.2
|
%
|
|
|
|
387.2
|
|
|
22.8
|
%
|
|
|
381.1
|
|
|
21.9
|
%
|
|
Income (loss) from operations
|
|
|
$
|
26.0
|
|
|
4.9
|
%
|
|
$
|
(23.2
|
)
|
|
(5.6
|
%)
|
|
|
$
|
(41.8
|
)
|
|
(2.5
|
%)
|
|
$
|
5.6
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
149.9
|
|
|
|
|
$
|
152.1
|
|
|
|
|
|
$
|
628.2
|
|
|
|
|
$
|
661.5
|
|
|
|
|
Gross profit
|
|
|
|
34.7
|
|
|
23.1
|
%
|
|
|
34.5
|
|
|
22.7
|
%
|
|
|
|
145.4
|
|
|
23.1
|
%
|
|
|
149.6
|
|
|
22.6
|
%
|
|
SG&A
|
|
|
|
18.0
|
|
|
12.0
|
%
|
|
|
18.3
|
|
|
12.0
|
%
|
|
|
|
73.6
|
|
|
11.7
|
%
|
|
|
74.3
|
|
|
11.2
|
%
|
|
Income from operations
|
|
|
$
|
16.7
|
|
|
11.1
|
%
|
|
$
|
16.2
|
|
|
10.7
|
%
|
|
|
$
|
71.8
|
|
|
11.4
|
%
|
|
$
|
75.3
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate/Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
(22.9
|
)
|
|
|
|
$
|
(18.8
|
)
|
|
|
|
|
$
|
(119.2
|
)
|
|
|
|
$
|
(103.5
|
)
|
|
|
|
Gross profit
|
|
|
|
3.9
|
|
|
(17.0
|
%)
|
|
|
3.7
|
|
|
(19.7
|
%)
|
|
|
|
13.5
|
|
|
(11.3
|
%)
|
|
|
20.8
|
|
|
(20.1
|
%)
|
|
SG&A
|
|
|
|
12.4
|
|
|
(54.1
|
%)
|
|
|
14.9
|
|
|
(79.3
|
%)
|
|
|
|
35.9
|
|
|
(30.1
|
%)
|
|
|
44.5
|
|
|
(43.0
|
%)
|
|
Loss from operations
|
|
|
$
|
(8.5
|
)
|
|
37.1
|
%
|
|
$
|
(11.2
|
)
|
|
59.6
|
%
|
|
|
$
|
(22.4
|
)
|
|
18.8
|
%
|
|
$
|
(23.7
|
)
|
|
22.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (except per share data and percentages), and are as of or
for the period ended December 31, 2013, unless otherwise indicated.
After-tax gains or expense and per share amounts (Income from
continuing operations as adjusted) are calculated using pre-tax amounts,
applying a tax rate based on 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 discussing earnings per share,
the Company adjusts for items it believes are not reflective of
operating activities in the periods.
|
Fourth Quarter 2013
|
|
|
Pre-Tax
|
|
Tax Rate
|
|
After-Tax
|
|
EPS*
|
|
|
|
Restructuring and related items
|
|
|
$
|
10.0
|
|
**
|
|
$
|
8.0
|
|
$
|
0.07
|
|
|
|
Total EPS Effect
|
|
|
$
|
10.0
|
|
|
|
$
|
8.0
|
|
$
|
0.07
|
|
|
* Based on weighted average diluted shares of 117.4M
|
** Based on a jurisdictional blend
|
|
|
Fourth Quarter 2012
|
|
|
Pre-Tax
|
|
|
Tax Rate
|
|
|
After-Tax
|
|
|
EPS*
|
|
Debt – Early Extinguishment
|
|
$
|
(30.7)
|
|
|
35.7%
|
|
$
|
(19.7)
|
|
$
|
(0.18)
|
|
Restructuring and related items
|
|
|
(22.5)
|
|
|
**
|
|
|
(15.7)
|
|
|
(0.14)
|
|
Roadbuilding Related
|
|
|
(15.3)
|
|
|
**
|
|
|
(10.0)
|
|
|
(0.09)
|
|
Post-Employment Benefits and Other
|
|
|
(10.8)
|
|
|
**
|
|
|
(7.2)
|
|
|
(0.06)
|
|
Total EPS Effect
|
|
$
|
(79.3)
|
|
|
|
|
$
|
(52.6)
|
|
$
|
(0.47)
|
* Based on weighted average diluted shares of 114.2M
|
** Based on a jurisdictional blend
|
|
|
Full Year 2013
|
|
|
Pre-Tax
|
|
Tax Rate
|
|
After-Tax
|
|
EPS*
|
|
|
|
Roadbuilding related
|
|
|
$
|
(6.1
|
)
|
|
36.0%
|
|
$
|
(3.9
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
Debt – Early Extinguishment
|
|
|
|
(5.2
|
)
|
|
**
|
|
|
(3.5
|
)
|
|
|
(0.03
|
)
|
|
|
|
Restructuring and related items
|
|
|
|
(62.1
|
)
|
|
**
|
|
|
(47.9
|
)
|
|
|
(0.41
|
)
|
|
|
|
MHPS Redeemable NCI
|
|
|
|
3.1
|
|
|
-
|
|
|
3.1
|
|
|
|
0.03
|
|
|
|
|
Total EPS Effect
|
|
|
$
|
(70.3
|
)
|
|
|
|
$
|
(52.2
|
)
|
|
$
|
(0.44
|
)
|
|
|
* Based on weighted average diluted shares of 117.0M
|
** Based on a jurisdictional blend
|
|
|
Full Year 2012
|
|
|
Pre-Tax
|
|
Tax Rate
|
|
After-Tax
|
|
EPS*
|
|
|
|
Debt – Early Extinguishment
|
|
|
$
|
(80.6
|
)
|
|
**
|
|
$
|
(52.0
|
)
|
|
$
|
(0.46
|
)
|
|
|
|
Restructuring and related items
|
|
|
|
(29.5
|
)
|
|
**
|
|
|
(19.5
|
)
|
|
|
(0.17
|
)
|
|
|
|
Change in UK rate
|
|
|
|
-
|
|
|
-
|
|
|
(1.6
|
)
|
|
|
(0.01
|
)
|
|
|
|
Write down of acquisition related note
|
|
|
|
(12.3
|
)
|
|
-
|
|
|
(12.3
|
)
|
|
|
(0.11
|
)
|
|
|
|
Roadbuilding related
|
|
|
|
(15.3
|
)
|
|
**
|
|
|
(10.0
|
)
|
|
|
(0.09
|
)
|
|
|
|
Post-Employment benefits and other
|
|
|
|
(10.8
|
)
|
|
**
|
|
|
(7.1
|
)
|
|
|
(0.06
|
)
|
|
|
|
Total EPS Effect
|
|
|
$
|
(148.5
|
)
|
|
|
|
$
|
(102.5
|
)
|
|
$
|
(0.90
|
)
|
|
|
* Based on weighted average diluted shares of 113.9M
|
** Based on a 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,
2013
|
|
|
Dec 31,
2012
|
|
%
change
|
|
|
Sept 30,
2013
|
|
%
change
|
Consolidated Backlog
|
|
|
$
|
1,827.7
|
|
$
|
1,976.1
|
|
(7.5%)
|
|
$
|
1,796.1
|
|
1.8%
|
AWP
|
|
|
$
|
294.4
|
|
$
|
509.9
|
|
(42.3%)
|
|
$
|
311.9
|
|
(5.6%)
|
Construction
|
|
|
$
|
165.6
|
|
$
|
176.0
|
|
(5.9%)
|
|
$
|
119.9
|
|
38.1%
|
Cranes
|
|
|
$
|
501.2
|
|
$
|
642.7
|
|
(22.0%)
|
|
$
|
485.4
|
|
3.3%
|
MHPS
|
|
|
$
|
805.3
|
|
$
|
577.1
|
|
39.5%
|
|
$
|
826.8
|
|
(2.6%)
|
MP
|
|
|
$
|
61.2
|
|
$
|
70.4
|
|
(13.1%)
|
|
$
|
52.1
|
|
17.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt is calculated using the Condensed 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, 2013
|
|
|
Dec 31, 2012
|
|
Long term debt, less current portion
|
|
|
$
|
1,889.9
|
|
|
$
|
2,014.9
|
|
Notes payable and current portion of long-term debt
|
|
|
|
86.8
|
|
|
|
83.8
|
|
Debt
|
|
|
$
|
1,976.7
|
|
|
$
|
2,098.7
|
|
|
|
|
|
|
|
|
|
|
|
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
Condensed 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,
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Income (loss) from operations
|
|
|
$
|
131.4
|
|
|
$
|
23.0
|
|
|
|
$
|
419.1
|
|
|
$
|
366.8
|
|
|
Depreciation
|
|
|
|
25.8
|
|
|
|
27.3
|
|
|
|
|
104.4
|
|
|
|
99.7
|
|
|
Amortization
|
|
|
|
8.6
|
|
|
|
13.3
|
|
|
|
|
47.1
|
|
|
|
52.6
|
|
|
Bank fee amortization not included in Income (loss) from operations
|
|
|
|
(2.2
|
)
|
|
|
(2.3
|
)
|
|
|
|
(8.5
|
)
|
|
|
(9.6
|
)
|
|
EBITDA
|
|
|
$
|
163.6
|
|
|
$
|
61.3
|
|
|
|
|
562.1
|
|
|
|
509.5
|
|
|
Operating profit adjustments
|
|
|
|
|
|
|
|
|
61.0
|
|
|
|
67.9
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
$
|
623.1
|
|
|
$
|
577.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MHPS - EBITDA
|
|
|
Twelve months ended
December 31,2013
|
|
|
Twelve months ended
December 31,2012
|
|
Income (loss) from operations - MHPS
|
|
|
$
|
(41.8
|
)
|
|
|
$
|
5.6
|
|
|
Depreciation
|
|
|
|
35.8
|
|
|
|
|
35.1
|
|
|
Amortization
|
|
|
|
25.4
|
|
|
|
|
29.2
|
|
|
Bank fee amortization not included in Income (loss) from operations
|
|
|
|
---
|
|
|
|
|
(0.5
|
)
|
|
EBITDA - MHPS
|
|
|
|
19.4
|
|
|
|
|
69.4
|
|
|
Operating profit adjustments
|
|
|
|
46.2
|
|
|
|
|
22.3
|
|
|
Adjusted EBITDA - MHPS
|
|
|
$
|
65.6
|
|
|
|
$
|
91.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is defined as income from operations plus
depreciation and amortization, proceeds from the sale of assets, certain
impairments and write-downs, plus or minus changes in working capital,
customer advances and rental/demo equipment and less capital
expenditures.
|
|
|
|
Three months ended
December 31, 2013
|
|
|
Twelve months ended
December 31,2013
|
|
Income (loss) from operations
|
|
|
|
$
|
131.4
|
|
|
|
$
|
419.1
|
|
|
Depreciation and amortization
|
|
|
|
|
34.4
|
|
|
|
|
151.5
|
|
|
Proceeds from sale of assets
|
|
|
|
|
0.9
|
|
|
|
|
46.1
|
|
|
Changes in working capital
|
|
|
|
|
(13.6
|
)
|
|
|
|
(161.2
|
)
|
|
Capital expenditures
|
|
|
|
|
(21.6
|
)
|
|
|
|
(79.5
|
)
|
|
Free cash flow
|
|
|
|
$
|
131.5
|
|
|
|
$
|
376.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations as adjusted: The Company adjusts
income (loss) from operations for items it believes are not reflective
of operating activities in the periods.
|
|
|
Three months ended Dec 31,
|
|
|
Twelve Months ended Dec 31,
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Income (loss) from operations as reported
|
|
|
$
|
131.4
|
|
|
$
|
23.0
|
|
|
$
|
419.1
|
|
$
|
366.8
|
|
Write Down of Acquisition Related Note
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
12.3
|
|
Roadbuilding Related
|
|
|
|
-
|
|
|
|
15.3
|
|
|
|
3.4
|
|
|
15.3
|
|
Restructuring and Related Items
|
|
|
|
(10.0
|
)
|
|
|
22.5
|
|
|
|
57.6
|
|
|
29.5
|
|
Other Items
|
|
|
|
-
|
|
|
|
10.8
|
|
|
|
-
|
|
|
10.8
|
|
Income (loss) from operations as adjusted
|
|
|
$
|
121.4
|
|
|
$
|
71.6
|
|
|
$
|
480.1
|
|
$
|
434.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Terex Corporation 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 operations by a figure equal to one minus
the effective tax rate of the Company. 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 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. Total Terex Corporation Stockholders’ equity is adjusted to
include redeemable noncontrolling interest as this item is deemed to be
temporary equity and therefore the Company believes it should be
included in the denominator of the ROIC ratio. 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) thereby providing, 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 ‘13
|
|
Sept ‘13
|
|
Jun ‘13
|
|
Mar ‘13
|
|
Dec ‘12
|
|
Provision for (benefit from) income taxes
|
|
|
$
|
22.3
|
|
|
$
|
22.8
|
|
|
$
|
27.7
|
|
|
$
|
14.6
|
|
|
|
|
Divided by: Income (loss) before income taxes
|
|
|
|
106.0
|
|
|
|
106.6
|
|
|
|
46.4
|
|
|
|
32.3
|
|
|
|
|
Effective tax rate
|
|
|
|
21.0
|
%
|
|
|
21.4
|
%
|
|
|
59.7
|
%
|
|
|
45.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations as adjusted
|
|
|
$
|
131.5
|
|
|
$
|
139.4
|
|
|
$
|
83.8
|
|
|
$
|
66.1
|
|
|
|
|
Multiplied by: 1 minus Effective tax rate
|
|
|
|
79.0
|
%
|
|
|
78.6
|
%
|
|
|
40.3
|
%
|
|
|
54.8
|
%
|
|
|
|
Adjusted net operating income after tax
|
|
|
$
|
103.9
|
|
|
$
|
109.6
|
|
|
$
|
33.8
|
|
|
$
|
36.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (as defined above)
|
|
|
$
|
1,976.7
|
|
|
$
|
1,905.9
|
|
|
$
|
1,870.4
|
|
|
$
|
2,082.5
|
|
|
$
|
2,098.7
|
|
|
Less: Cash and cash equivalents
|
|
|
|
(408.1
|
)
|
|
|
(370.6
|
)
|
|
|
(548.2
|
)
|
|
|
(729.7
|
)
|
|
|
(678.0
|
)
|
|
Debt less Cash and cash equivalents
|
|
|
$
|
1,568.6
|
|
|
$
|
1,535.3
|
|
|
$
|
1,322.2
|
|
|
$
|
1,352.8
|
|
|
$
|
1,420.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Terex Corporation stockholders’ equity as adjusted
|
|
|
$
|
2,092.4
|
|
|
$
|
2,002.2
|
|
|
$
|
2,042.7
|
|
|
$
|
2,053.8
|
|
|
$
|
2,103.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt less Cash and cash equivalents plus Total Terex Corporation
stockholders’ equity as adjusted
|
|
|
$
|
3,661.0
|
|
|
$
|
3,537.5
|
|
|
$
|
3,364.9
|
|
|
$
|
3,406.6
|
|
|
$
|
3,524.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013 ROIC
|
|
|
|
8.1
|
%
|
|
Adjusted net operating income (loss) after tax (last 4 quarters)
|
|
|
$
|
283.5
|
|
|
Average Debt less Cash and cash equivalents plus Total Terex
Corporation stockholders’ equity as adjusted (5 quarters)
|
|
|
$
|
3,498.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
12/31/13
|
|
Three months
ended
9/30/13
|
|
Three months
ended
6/30/13
|
|
Three months
ended
3/31/13
|
|
Reconciliation of income (loss) from operations:
|
|
|
|
|
|
|
|
|
|
|
Income from operations as reported
|
|
|
$
|
131.4
|
|
$
|
138.6
|
|
$
|
83.5
|
|
$
|
65.6
|
|
(Income) loss from operations for TFS
|
|
|
|
0.1
|
|
|
0.8
|
|
|
0.3
|
|
|
0.5
|
|
Income from operations as adjusted
|
|
|
$
|
131.5
|
|
$
|
139.4
|
|
$
|
83.8
|
|
$
|
66.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Terex Corporation stockholders’ equity:
|
|
|
As of
12/31/13
|
|
As of
9/30/13
|
|
As of
6/30/13
|
|
As of
3/31/13
|
|
As of
12/31/12
|
|
Terex Corporation stockholders’ equity as reported
|
|
|
$
|
2,190.1
|
|
|
$
|
2,094.2
|
|
|
$
|
1,955.8
|
|
|
$
|
1,957.5
|
|
|
$
|
2,007.7
|
|
|
Less: TFS assets
|
|
|
|
(151.6
|
)
|
|
|
(149.8
|
)
|
|
|
(139.7
|
)
|
|
|
(147.5
|
)
|
|
|
(150.9
|
)
|
|
Redeemable noncontrolling interest
|
|
|
|
53.9
|
|
|
|
57.8
|
|
|
|
226.6
|
|
|
|
243.8
|
|
|
|
246.9
|
|
|
Terex Corporation stockholders’ equity as adjusted
|
|
|
$
|
2,092.4
|
|
|
$
|
2,002.2
|
|
|
$
|
2,042.7
|
|
|
$
|
2,053.8
|
|
|
$
|
2,103.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Three Month Annualized Net Sales is calculated using the
net sales for the quarter multiplied by four.
|
|
|
Three Months Ended
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
Fourth Quarter Net Sales
|
|
|
$
|
1,811.8
|
|
|
1,619.8
|
|
|
|
|
x 4
|
|
|
x 4
|
|
Trailing Three Month Annualized Net Sales
|
|
|
$
|
7,247.2
|
|
|
6,479.2
|
|
|
|
|
|
|
|
|
|
|
Working Capital is calculated using the Consolidated Balance
Sheet amounts for Trade receivables (net of allowance) plus Inventories
less Trade accounts payable and Customer Advances. 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. For the periods stated below,
working capital was:
|
|
|
Dec 31, 2013
|
|
|
Sept 30, 2013
|
|
|
Dec 31, 2012
|
|
Inventories
|
|
|
$
|
1,613.2
|
|
|
|
$
|
1,669.0
|
|
|
|
$
|
1,632.2
|
|
|
Trade Receivables
|
|
|
|
1,176.8
|
|
|
|
|
1,122.5
|
|
|
|
|
1,026.6
|
|
|
Less: Trade Accounts Payable
|
|
|
|
(689.1
|
)
|
|
|
|
(676.3
|
)
|
|
|
|
(600.2
|
)
|
|
Less: Customer Advances
|
|
|
|
(302.1
|
)
|
|
|
|
(312.1
|
)
|
|
|
|
(312.9
|
)
|
|
Total Working Capital
|
|
|
$
|
1,798.8
|
|
|
|
$
|
1,803.1
|
|
|
|
$
|
1,745.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943
Vice President,
Investor Relations
[email protected]