WESTPORT, Conn.--(BUSINESS WIRE)--Feb. 17, 2015--
Terex Corporation (NYSE:TEX) today announced income from continuing
operations of $259.0 million, or $2.27 per share, on net sales of $7.3
billion for the full year 2014, as compared to 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. Excluding the $0.49 per share tax
benefit related to the ASV disposition and certain other items, income
from continuing operations as adjusted for the full year 2014 was
$268.5 million, or $2.35 per share, compared to $261.2 million, or $2.23
per share, in 2013. 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 2014 income from continuing operations was
$79.9 million, or $0.71 per share, on net sales of $1.8 billion,
compared to income from continuing operations of $84.8 million, or $0.72
per share, on net sales of $1.8 billion for the fourth quarter of 2013.
Excluding the $0.49 per share tax benefit related to the ASV disposition
and certain other items, income from continuing operations as adjusted
was $80.3 million, or $0.72 per share, in 2014 compared to $76.8
million, or $0.65 per share, in 2013.
“Terex continued to improve in 2014 despite a more challenging operating
environment than anticipated entering the year,” commented Ron DeFeo,
Terex Chairman and CEO. “We have streamlined our business portfolio,
reduced our cost structure, introduced innovative new products, and
simplified operations. There is more work to do, but overall we are
pleased with the progress we have made and the momentum of our internal
improvement initiatives. Additionally in 2014, we repurchased 5.3
million shares, lowered borrowing costs and extended our debt maturity
dates, as well as generated $329 million of free cash flow.
Consequently, we have announced a new $200 million share repurchase
authorization, as well as an increase in our dividend of 20%.”
“Operationally, performance was mixed during 2014, and the fourth
quarter was no exception. Our Cranes and Materials Handling & Ports
Solutions (MHPS) segments had meaningful adjusted operating profit
increases in the fourth quarter, while our Aerial Work Platforms (AWP)
segment was substantially below the prior year. During the fourth
quarter of 2013, AWP performance was particularly strong as we focused
on producing equipment during that traditionally softer demand period to
capture incremental demand in the quarter, as well as level the
production load on our factories. Conversely, in the fourth quarter of
2014, we curtailed production to align our product build schedules more
closely with actual demand and machine configuration in our order book.
Importantly, however, AWP backlog increased 137% when compared with the
prior year, giving us confidence that 2015 will be another solid year
for this segment.”
Mr. DeFeo continued, “For the full year, adjusted operating profit for
the company as a whole was flat with 2013; however, the contribution
varied by segment. Performance this year was led by adjusted operating
profit improvements of $54 million and $23 million from MHPS and
Construction, respectively. Cranes and AWP disappointed with adjusted
operating profit performance of $35 million and $25 million below 2013,
respectively. Cranes performance was negatively impacted by lower net
sales and AWP by productivity, product mix and higher material costs. MP
operating profit declined by $11 million during the year, driven by
unfavorable mix and investments in growth initiatives. Lastly, we are
pleased that our overall working capital as a percentage of sales
improved to 22.5% and ROIC for the year was 11.2% or 310 basis points
higher than 2013.”
Outlook: The Company expects 2015 earnings
per share between $2.00 and $2.30 (excluding restructuring and other
unusual items) on net sales of between $6.2 billion and $6.6 billion. We
anticipate currency and the ASV disposition will negatively affect net
sales between $650 million and $750 million and EPS between $0.15 and
$0.20 per share.
Mr. DeFeo commented, “Our improvement program targeting $202 million of
incremental operating profit over the next few years is progressing as
planned. We anticipate approximately $50 million of profit improvements
in 2015 from these initiatives. Furthermore, tax and cash generation
initiatives remain on track. Market uncertainty from oil price and
currency volatility is a key contributor to our sales outlook. We will
continue to focus on what we can influence and believe improved
operating conditions will eventually return.”
Capital Structure: The Company’s liquidity
at December 31, 2014 increased by approximately $184 million compared to
September 30, 2014, for a total of $1,078 million, which comprised cash
of $478 million and borrowing availability under the Company’s revolving
credit facilities of $600 million. The increase was mainly due to an
improvement in working capital, offset by the repurchase of Terex common
stock during the quarter and capital expenditures. Debt, less
cash and cash equivalents, decreased approximately $258 million to
$1,311 million compared to December 31, 2013.
Kevin Bradley, Terex Senior Vice President and Chief Financial Officer,
commented, “Our primary focus areas in 2014 included improving our
capital structure and our financial efficiency. We made substantial
progress in these areas, notably the improvements in our balance sheet.
Aided by our focused working capital improvement activities, we were
able to generate $329 million in free cash flow in 2014, meaningfully
above our expectations. This, combined with our continued portfolio
management, particularly in our Construction segment, enabled us to
improve our liquidity by $342 million compared to December 2013.
Moreover, we completed our stock repurchase program, purchasing $170
million of stock in 2014 and paying $0.20 per share in dividends to our
shareholders.”
Taxes: The effective tax rate was negative
105.3% for the fourth quarter of 2014 and positive 12.7% for the full
year, as compared to an effective tax rate of positive 21.0% for the
fourth quarter of 2013 and positive 30.0% for the full year. The lower
effective tax rate for the fourth quarter of 2014 was primarily due to
tax benefits derived from divestitures and a more favorable geographic
mix of earnings.
Working Capital: Working Capital as
a percent of Trailing Three Month Annualized Net Sales was 22.5%
at December 31, 2014, as compared to 24.8% at December 31, 2013.
Backlog: Backlog for orders
deliverable during the next twelve months was approximately $2,001
million at December 31, 2014, an increase of approximately 17.4% from
September 30, 2014 and an increase of approximately 9.5% from December
31, 2013. The majority of the year over year increase relates to timing
differences in order patterns from large AWP rental customers, partially
offset by decreases in MHPS due to significant shipments of port
automation products in the fourth quarter of 2014 and the negative
impact of foreign exchange rates. The Glossary contains further details
regarding backlog.
All results are for continuing operations. All per share
amounts are on a fully diluted basis. A comprehensive review of
the quarterly financial performance is contained in the presentation
that will accompany the Company’s earnings conference call.
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 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 18, 2015, 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; 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
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 that arise from operating a multinational
business, 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 imposed by the United States
Securities and Exchange Commission (“SEC”); disruption or breach in our
information technology systems; 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 lifting and material handling solutions company
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,
manufacturing, shipping, transportation, refining, energy, utility,
quarrying and mining 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.
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|
|
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|
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,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Net sales
|
|
|
$
|
1,789.4
|
|
|
$
|
1,811.8
|
|
|
$
|
7,308.9
|
|
|
$
|
7,084.0
|
|
|
Cost of goods sold
|
|
|
|
(1,450.4
|
)
|
|
|
(1,426.1
|
)
|
|
|
(5,855.4
|
)
|
|
|
(5,644.5
|
)
|
|
Gross profit
|
|
|
|
339.0
|
|
|
|
385.7
|
|
|
|
1,453.5
|
|
|
|
1,439.5
|
|
|
Selling, general and administrative expenses
|
|
|
|
(268.6
|
)
|
|
|
(254.3
|
)
|
|
|
(1,030.4
|
)
|
|
|
(1,020.4
|
)
|
|
Income (loss) from operations
|
|
|
|
70.4
|
|
|
|
131.4
|
|
|
|
423.1
|
|
|
|
419.1
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
1.8
|
|
|
|
1.7
|
|
|
|
6.6
|
|
|
|
6.7
|
|
|
Interest expense
|
|
|
|
(28.2
|
)
|
|
|
(29.5
|
)
|
|
|
(119.1
|
)
|
|
|
(126.1
|
)
|
|
Loss on early extinguishment of debt
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.6
|
)
|
|
|
(5.2
|
)
|
|
Amortization of debt issuance costs
|
|
|
|
(1.4
|
)
|
|
|
(2.2
|
)
|
|
|
(7.4
|
)
|
|
|
(8.5
|
)
|
|
Other income (expense) – net
|
|
|
|
(3.2
|
)
|
|
|
4.6
|
|
|
|
(3.4
|
)
|
|
|
5.3
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
39.4
|
|
|
|
106.0
|
|
|
|
297.2
|
|
|
|
291.3
|
|
|
(Provision for) benefit from income taxes
|
|
|
|
41.5
|
|
|
|
(22.3
|
)
|
|
|
(37.7
|
)
|
|
|
(87.4
|
)
|
|
Income (loss) from continuing operations
|
|
|
|
80.9
|
|
|
|
83.7
|
|
|
|
259.5
|
|
|
|
203.9
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
—
|
|
|
|
1.6
|
|
|
|
1.4
|
|
|
|
14.4
|
|
|
Gain (loss) on disposition of discontinued operations- net of tax
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
58.6
|
|
|
|
2.6
|
|
|
Net income (loss)
|
|
|
|
81.0
|
|
|
|
85.3
|
|
|
|
319.5
|
|
|
|
220.9
|
|
|
Net loss (income) attributable to noncontrolling interest
|
|
|
|
(1.0
|
)
|
|
|
1.1
|
|
|
|
(0.5
|
)
|
|
|
5.1
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
$
|
80.0
|
|
|
$
|
86.4
|
|
|
$
|
319.0
|
|
|
$
|
226.0
|
|
|
Amounts attributable to Terex Corporation common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
79.9
|
|
|
$
|
84.8
|
|
|
$
|
259.0
|
|
|
$
|
209.0
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
—
|
|
|
|
1.6
|
|
|
|
1.4
|
|
|
|
14.4
|
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
58.6
|
|
|
|
2.6
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
$
|
80.0
|
|
|
$
|
86.4
|
|
|
$
|
319.0
|
|
|
$
|
226.0
|
|
|
Basic Earnings (Loss) per Share Attributable to Terex Corporation
Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
0.74
|
|
|
$
|
0.76
|
|
|
$
|
2.36
|
|
|
$
|
1.88
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
|
0.13
|
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.54
|
|
|
|
0.02
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
$
|
0.74
|
|
|
$
|
0.78
|
|
|
$
|
2.91
|
|
|
$
|
2.03
|
|
|
Diluted Earnings (Loss) per Share Attributable to Terex
Corporation Common Stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
0.71
|
|
|
$
|
0.72
|
|
|
$
|
2.27
|
|
|
$
|
1.79
|
|
|
Income (loss) from discontinued operations – net of tax
|
|
|
|
—
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
|
0.12
|
|
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.51
|
|
|
|
0.02
|
|
|
Net income (loss) attributable to Terex Corporation
|
|
|
$
|
0.71
|
|
|
$
|
0.74
|
|
|
$
|
2.79
|
|
|
$
|
1.93
|
|
|
Weighted average number of shares outstanding in per share
calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
107.8
|
|
|
|
111.3
|
|
|
|
109.7
|
|
|
|
111.1
|
|
|
Diluted
|
|
|
|
112.2
|
|
|
|
117.4
|
|
|
|
114.2
|
|
|
|
117.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)
(in millions, except par value)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
2014
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
478.2
|
|
|
$
|
408.1
|
|
|
Trade receivables (net of allowance of $30.5 and $47.6 at December
31, 2014 and 2013, respectively)
|
|
|
|
1,086.4
|
|
|
|
1,176.8
|
|
|
Inventories
|
|
|
|
1,460.9
|
|
|
|
1,613.2
|
|
|
Prepaid assets
|
|
|
|
248.0
|
|
|
|
220.9
|
|
|
Other current assets
|
|
|
|
82.7
|
|
|
|
91.1
|
|
|
Current assets – discontinued operations
|
|
|
|
—
|
|
|
|
129.3
|
|
|
Total current assets
|
|
|
|
3,356.2
|
|
|
|
3,639.4
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
Property, plant and equipment – net
|
|
|
|
690.3
|
|
|
|
789.4
|
|
|
Goodwill
|
|
|
|
1,131.0
|
|
|
|
1,245.6
|
|
|
Intangible assets – net
|
|
|
|
325.4
|
|
|
|
444.8
|
|
|
Other assets
|
|
|
|
425.1
|
|
|
|
401.9
|
|
|
Non-current assets – discontinued operations
|
|
|
|
—
|
|
|
|
15.6
|
|
|
Total assets
|
|
|
$
|
5,928.0
|
|
|
$
|
6,536.7
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Notes payable and current portion of long-term debt
|
|
|
$
|
152.5
|
|
|
$
|
86.8
|
|
|
Trade accounts payable
|
|
|
|
736.1
|
|
|
|
689.1
|
|
|
Accrued compensation and benefits
|
|
|
|
204.0
|
|
|
|
234.3
|
|
|
Accrued warranties and product liability
|
|
|
|
74.2
|
|
|
|
96.2
|
|
|
Customer advances
|
|
|
|
197.4
|
|
|
|
302.1
|
|
|
Other current liabilities
|
|
|
|
278.9
|
|
|
|
270.1
|
|
|
Current liabilities – discontinued operations
|
|
|
|
—
|
|
|
|
46.1
|
|
|
Total current liabilities
|
|
|
|
1,643.1
|
|
|
|
1,724.7
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
|
1,636.3
|
|
|
|
1,889.9
|
|
|
Retirement plans
|
|
|
|
432.5
|
|
|
|
388.2
|
|
|
Other non-current liabilities
|
|
|
|
177.0
|
|
|
|
259.5
|
|
|
Non-current liabilities – discontinued operations
|
|
|
|
—
|
|
|
|
5.7
|
|
|
Total liabilities
|
|
|
|
3,888.9
|
|
|
|
4,268.0
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
|
|
—
|
|
|
|
53.9
|
|
|
Stockholders’ equity
|
|
|
|
|
|
|
|
|
Common stock, $.01 par value – authorized 300.0 shares; issued
124.6 and 123.7 shares at December 31, 2014 and 2013, respectively
|
|
|
|
1.2
|
|
|
|
1.2
|
|
|
Additional paid-in capital
|
|
|
|
1,251.5
|
|
|
|
1,247.5
|
|
|
Retained earnings
|
|
|
|
1,984.9
|
|
|
|
1,688.1
|
|
|
Accumulated other comprehensive (loss) income
|
|
|
|
(429.8
|
)
|
|
|
(116.5
|
)
|
|
Less cost of shares of common stock in treasury – 19.2 and 13.8
shares at December 31, 2014 and 2013, respectively
|
|
|
|
(801.9
|
)
|
|
|
(630.2
|
)
|
|
Total Terex Corporation stockholders’ equity
|
|
|
|
2,005.9
|
|
|
|
2,190.1
|
|
|
Noncontrolling interest
|
|
|
|
33.2
|
|
|
|
24.7
|
|
|
Total stockholders’ equity
|
|
|
|
2,039.1
|
|
|
|
2,214.8
|
|
|
Total liabilities, redeemable noncontrolling interest and
stockholders’ equity
|
|
|
$
|
5,928.0
|
|
|
$
|
6,536.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
Twelve Months
|
|
|
|
Ended December 31,
|
|
|
|
|
2014
|
|
2013
|
|
Operating Activities
|
|
|
|
|
|
|
Net income
|
|
|
$
|
319.5
|
|
|
$
|
220.9
|
|
|
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
155.7
|
|
|
|
152.3
|
|
|
Changes in operating assets and liabilities (net of effects of
acquisitions and divestitures):
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
|
(4.2
|
)
|
|
|
(153.1
|
)
|
|
Inventories
|
|
|
|
(27.1
|
)
|
|
|
(70.4
|
)
|
|
Trade accounts payable
|
|
|
|
85.8
|
|
|
|
86.9
|
|
|
Customer advances
|
|
|
|
(75.2
|
)
|
|
|
(16.5
|
)
|
|
Other, net
|
|
|
|
(43.8
|
)
|
|
|
(31.6
|
)
|
|
Net cash provided by (used in) operating activities
|
|
|
$
|
410.7
|
|
|
$
|
188.5
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(81.5
|
)
|
|
|
(82.8
|
)
|
|
Proceeds from disposition of discontinued operations
|
|
|
|
162.2
|
|
|
|
0.7
|
|
|
Other investing activities, net
|
|
|
|
14.3
|
|
|
|
44.7
|
|
|
Net cash provided by (used in) investing activities
|
|
|
|
95.0
|
|
|
|
(37.4
|
)
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
(396.7
|
)
|
|
|
(420.1
|
)
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
|
(38.9
|
)
|
|
|
(0.9
|
)
|
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
|
70.1
|
|
|
|
(269.9
|
)
|
|
Cash and Cash Equivalents at Beginning of Period
|
|
|
|
408.1
|
|
|
|
678.0
|
|
|
Cash and Cash Equivalents at End of Period
|
|
|
$
|
478.2
|
|
|
$
|
408.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
SEGMENT RESULTS DISCLOSURE
(unaudited)
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
|
|
|
Year-to-Date
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
|
% of
|
|
|
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
|
|
|
Net Sales
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
1,789.4
|
|
|
|
|
|
|
$
|
1,811.8
|
|
|
|
|
|
|
$
|
7,308.9
|
|
|
|
|
|
|
$
|
7,084.0
|
|
|
|
|
|
Gross profit
|
|
|
|
339.0
|
|
|
|
18.9
|
%
|
|
|
|
385.7
|
|
|
|
21.3
|
%
|
|
|
|
1,453.5
|
|
|
|
19.9
|
%
|
|
|
|
1,439.5
|
|
|
|
20.3
|
%
|
|
SG&A
|
|
|
|
268.6
|
|
|
|
15.0
|
%
|
|
|
|
254.3
|
|
|
|
14.0
|
%
|
|
|
|
1,030.4
|
|
|
|
14.1
|
%
|
|
|
|
1,020.4
|
|
|
|
14.4
|
%
|
|
Income from operations
|
|
|
$
|
70.4
|
|
|
|
3.9
|
%
|
|
|
$
|
131.4
|
|
|
|
7.3
|
%
|
|
|
$
|
423.1
|
|
|
|
5.8
|
%
|
|
|
$
|
419.1
|
|
|
|
5.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AWP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
468.2
|
|
|
|
|
|
|
$
|
482.0
|
|
|
|
|
|
|
$
|
2,369.7
|
|
|
|
|
|
|
$
|
2,131.0
|
|
|
|
|
|
Gross profit
|
|
|
|
87.7
|
|
|
|
18.7
|
%
|
|
|
|
121.8
|
|
|
|
25.3
|
%
|
|
|
|
504.3
|
|
|
|
21.3
|
%
|
|
|
|
514.9
|
|
|
|
24.2
|
%
|
|
SG&A
|
|
|
|
49.0
|
|
|
|
10.5
|
%
|
|
|
|
50.3
|
|
|
|
10.4
|
%
|
|
|
|
201.5
|
|
|
|
8.5
|
%
|
|
|
|
189.1
|
|
|
|
8.9
|
%
|
|
Income from operations
|
|
|
$
|
38.7
|
|
|
|
8.3
|
%
|
|
|
$
|
71.5
|
|
|
|
14.8
|
%
|
|
|
$
|
302.8
|
|
|
|
12.8
|
%
|
|
|
$
|
325.8
|
|
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
206.4
|
|
|
|
|
|
|
$
|
193.5
|
|
|
|
|
|
|
$
|
836.6
|
|
|
|
|
|
|
$
|
820.0
|
|
|
|
|
|
Gross profit
|
|
|
|
20.2
|
|
|
|
9.8
|
%
|
|
|
|
24.0
|
|
|
|
12.4
|
%
|
|
|
|
90.4
|
|
|
|
10.8
|
%
|
|
|
|
83.2
|
|
|
|
10.1
|
%
|
|
SG&A
|
|
|
|
19.6
|
|
|
|
9.5
|
%
|
|
|
|
24.0
|
|
|
|
12.4
|
%
|
|
|
|
89.2
|
|
|
|
10.7
|
%
|
|
|
|
108.0
|
|
|
|
13.2
|
%
|
|
Income (loss) from operations
|
|
|
$
|
0.6
|
|
|
|
0.3
|
%
|
|
|
$
|
-
|
|
|
|
0.0
|
%
|
|
|
$
|
1.2
|
|
|
|
0.1
|
%
|
|
|
$
|
(24.8
|
)
|
|
|
(3.0
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cranes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
474.3
|
|
|
|
|
|
|
$
|
480.4
|
|
|
|
|
|
|
$
|
1,791.1
|
|
|
|
|
|
|
$
|
1,925.5
|
|
|
|
|
|
Gross profit
|
|
|
|
88.0
|
|
|
|
18.6
|
%
|
|
|
|
84.3
|
|
|
|
17.5
|
%
|
|
|
|
313.4
|
|
|
|
17.5
|
%
|
|
|
|
337.1
|
|
|
|
17.5
|
%
|
|
SG&A
|
|
|
|
53.4
|
|
|
|
11.3
|
%
|
|
|
|
58.6
|
|
|
|
12.2
|
%
|
|
|
|
227.5
|
|
|
|
12.7
|
%
|
|
|
|
226.6
|
|
|
|
11.8
|
%
|
|
Income from operations
|
|
|
$
|
34.6
|
|
|
|
7.3
|
%
|
|
|
$
|
25.7
|
|
|
|
5.3
|
%
|
|
|
$
|
85.9
|
|
|
|
4.8
|
%
|
|
|
$
|
110.5
|
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MHPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
515.6
|
|
|
|
|
|
|
$
|
528.9
|
|
|
|
|
|
|
$
|
1,783.4
|
|
|
|
|
|
|
$
|
1,698.5
|
|
|
|
|
|
Gross profit
|
|
|
|
108.5
|
|
|
|
21.0
|
%
|
|
|
|
117.0
|
|
|
|
22.1
|
%
|
|
|
|
392.2
|
|
|
|
22.0
|
%
|
|
|
|
345.4
|
|
|
|
20.3
|
%
|
|
SG&A
|
|
|
|
139.7
|
|
|
|
27.1
|
%
|
|
|
|
91.0
|
|
|
|
17.2
|
%
|
|
|
|
409.4
|
|
|
|
23.0
|
%
|
|
|
|
387.2
|
|
|
|
22.8
|
%
|
|
Income (loss) from operations
|
|
|
$
|
(31.2
|
)
|
|
|
(6.1
|
)%
|
|
|
$
|
26.0
|
|
|
|
4.9
|
%
|
|
|
$
|
(17.2
|
)
|
|
|
(1.0
|
)%
|
|
|
$
|
(41.8
|
)
|
|
|
(2.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
164.4
|
|
|
|
|
|
|
$
|
149.9
|
|
|
|
|
|
|
$
|
653.1
|
|
|
|
|
|
|
$
|
628.2
|
|
|
|
|
|
Gross profit
|
|
|
|
35.1
|
|
|
|
21.4
|
%
|
|
|
|
34.7
|
|
|
|
23.1
|
%
|
|
|
|
140.8
|
|
|
|
21.6
|
%
|
|
|
|
145.4
|
|
|
|
23.1
|
%
|
|
SG&A
|
|
|
|
16.9
|
|
|
|
10.3
|
%
|
|
|
|
18.0
|
|
|
|
12.0
|
%
|
|
|
|
80.2
|
|
|
|
12.3
|
%
|
|
|
|
73.6
|
|
|
|
11.7
|
%
|
|
Income from operations
|
|
|
$
|
18.2
|
|
|
|
11.1
|
%
|
|
|
$
|
16.7
|
|
|
|
11.1
|
%
|
|
|
$
|
60.6
|
|
|
|
9.3
|
%
|
|
|
$
|
71.8
|
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corp & Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$
|
(39.5
|
)
|
|
|
|
|
|
$
|
(22.9
|
)
|
|
|
|
|
|
$
|
(125.0
|
)
|
|
|
|
|
|
$
|
(119.2
|
)
|
|
|
|
|
Gross profit
|
|
|
|
(0.5
|
)
|
|
|
1.3
|
%
|
|
|
|
3.9
|
|
|
|
(17.0
|
)%
|
|
|
|
12.4
|
|
|
|
(9.9
|
)%
|
|
|
|
13.5
|
|
|
|
(11.3
|
)%
|
|
SG&A
|
|
|
|
(10.0
|
)
|
|
|
25.3
|
%
|
|
|
|
12.4
|
|
|
|
(54.1
|
)%
|
|
|
|
22.6
|
|
|
|
(18.1
|
)%
|
|
|
|
35.9
|
|
|
|
(30.1
|
)%
|
|
Income (loss) from operations
|
|
|
$
|
9.5
|
|
|
|
(24.1
|
)%
|
|
|
$
|
(8.5
|
)
|
|
|
37.1
|
%
|
|
|
$
|
(10.2
|
)
|
|
|
8.2
|
%
|
|
|
$
|
(22.4
|
)
|
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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, 2014, unless otherwise indicated.
As changes in foreign currency exchange rates have a non-operating
impact on the translation of 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.
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 2014
|
|
|
Pre-Tax
|
|
|
|
Tax Rate
|
|
|
|
After-Tax
|
|
|
|
EPS*
|
|
Restructuring and Related
|
|
$
|
(31.5
|
)
|
|
|
|
**
|
|
|
$
|
(21.8
|
)
|
|
|
$
|
(0.19
|
)
|
|
Portfolio Management
|
|
|
(19.1
|
)
|
|
|
|
**
|
|
|
|
(19.7
|
)
|
|
|
|
(0.18
|
)
|
|
ASV Tax Benefit
|
|
|
—
|
|
|
|
|
N/A
|
|
|
|
55.8
|
|
|
|
|
0.49
|
|
|
Valuation Allowance & Related Tax Items
|
|
|
—
|
|
|
|
|
N/A
|
|
|
|
(14.7
|
)
|
|
|
|
(0.13
|
)
|
|
Total EPS Effect
|
|
$
|
(50.6
|
)
|
|
|
|
|
|
|
$
|
(0.4
|
)
|
|
|
$
|
(0.01
|
)
|
* Based on weighted average diluted shares of 112.2M
** Based on a
jurisdictional blend
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter 2013
|
|
|
|
Pre-Tax
|
|
|
Tax Rate
|
|
|
|
After-Tax
|
|
|
|
EPS*
|
|
Restructuring and Related
|
|
|
$
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year 2014
|
|
|
|
Pre-Tax
|
|
|
Tax Rate
|
|
|
|
After-Tax
|
|
|
|
EPS*
|
|
Debt – Early Extinguishment
|
|
|
$
|
(2.6
|
)
|
|
|
**
|
|
|
$
|
(1.7
|
)
|
|
|
$
|
(0.01
|
)
|
|
Restructuring and Related
|
|
|
|
(42.2
|
)
|
|
|
**
|
|
|
|
(29.2
|
)
|
|
|
|
(0.26
|
)
|
|
Portfolio Management
|
|
|
|
(19.1
|
)
|
|
|
**
|
|
|
|
(19.7
|
)
|
|
|
|
(0.17
|
)
|
|
ASV Tax Benefit
|
|
|
|
—
|
|
|
|
N/A
|
|
|
|
55.8
|
|
|
|
|
0.49
|
|
|
Valuation Allowance & Related Tax Items
|
|
|
|
—
|
|
|
|
N/A
|
|
|
|
(14.7
|
)
|
|
|
|
(0.13
|
)
|
|
Total EPS Effect
|
|
|
$
|
(63.9
|
)
|
|
|
|
|
|
$
|
(9.5
|
)
|
|
|
$
|
(0.08
|
)
|
* 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
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,
2014
|
|
|
|
Dec 31,
2013
|
|
|
%
change
|
|
|
|
|
Sept 30,
2014
|
|
|
%
change
|
|
|
Consolidated Backlog
|
|
|
$
|
2,001.0
|
|
|
$
|
1,827.7
|
|
|
9.5
|
%
|
|
|
$
|
1,704.3
|
|
|
17.4
|
%
|
|
AWP
|
|
|
$
|
698.4
|
|
|
$
|
294.4
|
|
|
137.2
|
%
|
|
|
$
|
214.2
|
|
|
226.1
|
%
|
|
Construction
|
|
|
$
|
137.9
|
|
|
$
|
165.6
|
|
|
(16.7
|
)%
|
|
|
$
|
132.1
|
|
|
4.4
|
%
|
|
Cranes
|
|
|
$
|
538.5
|
|
|
$
|
501.2
|
|
|
7.4
|
%
|
|
|
$
|
551.8
|
|
|
(2.4
|
)%
|
|
MHPS
|
|
|
$
|
574.8
|
|
|
$
|
805.3
|
|
|
(28.6
|
)%
|
|
|
$
|
750.9
|
|
|
(23.5
|
)%
|
|
MP
|
|
|
$
|
51.4
|
|
|
$
|
61.2
|
|
|
(16.0
|
)%
|
|
|
$
|
55.3
|
|
|
(7.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. Net Debt is calculated as
Debt less Cash and cash equivalents. These measures aid in the
evaluation of the Company’s financial condition.
|
|
|
|
Dec 31, 2014
|
|
|
Dec 31, 2013
|
|
Long term debt, less current portion
|
|
|
$
|
1,636.3
|
|
|
|
$
|
1,889.9
|
|
|
Notes payable and current portion of long-term debt
|
|
|
|
152.5
|
|
|
|
|
86.8
|
|
|
Debt
|
|
|
$
|
1,788.8
|
|
|
|
$
|
1,976.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Cash and cash equivalents
|
|
|
|
(478.2
|
)
|
|
|
|
(408.1
|
)
|
|
Net Debt
|
|
|
$
|
1,310.6
|
|
|
|
$
|
1,568.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Twelve months ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Income (loss) from operations
|
|
|
$
|
70.4
|
|
|
|
$
|
131.4
|
|
|
|
$
|
423.1
|
|
|
|
$
|
419.1
|
|
|
Depreciation
|
|
|
|
27.5
|
|
|
|
|
25.8
|
|
|
|
|
110.5
|
|
|
|
|
104.4
|
|
|
Amortization
|
|
|
|
10.1
|
|
|
|
|
8.6
|
|
|
|
|
44.9
|
|
|
|
|
47.1
|
|
|
Bank fee amortization not included in Income (loss) from operations
|
|
|
|
(1.4
|
)
|
|
|
|
(2.2
|
)
|
|
|
|
(7.4
|
)
|
|
|
|
(8.5
|
)
|
|
EBITDA
|
|
|
|
106.6
|
|
|
|
|
163.6
|
|
|
|
|
571.1
|
|
|
|
|
562.1
|
|
|
Operating profit adjustments
|
|
|
|
47.7
|
|
|
|
|
(10.0
|
)
|
|
|
|
58.4
|
|
|
|
|
61.0
|
|
|
Adjusted EBITDA
|
|
|
$
|
154.3
|
|
|
|
$
|
153.6
|
|
|
|
$
|
629.5
|
|
|
|
$
|
623.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MHPS - EBITDA
|
|
|
Three months ended
|
|
|
Twelve months ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Income (loss) from operations
|
|
|
$
|
(31.2
|
)
|
|
|
$
|
26.0
|
|
|
|
$
|
(17.2
|
)
|
|
|
$
|
(41.8
|
)
|
|
Depreciation
|
|
|
|
9.7
|
|
|
|
|
8.4
|
|
|
|
|
40.3
|
|
|
|
|
35.8
|
|
|
Amortization
|
|
|
|
6.0
|
|
|
|
|
3.1
|
|
|
|
|
25.5
|
|
|
|
|
25.4
|
|
|
EBITDA
|
|
|
|
(15.5
|
)
|
|
|
|
37.5
|
|
|
|
|
48.6
|
|
|
|
|
19.4
|
|
|
Operating profit adjustments
|
|
|
|
64.4
|
|
|
|
|
(3.1
|
)
|
|
|
|
75.1
|
|
|
|
|
46.2
|
|
|
Adjusted EBITDA
|
|
|
$
|
48.9
|
|
|
|
$
|
34.4
|
|
|
|
$
|
123.7
|
|
|
|
$
|
65.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow is defined as net cash provided by (used in)
operating activities less capital expenditure.
|
|
|
|
Three months ended
|
|
|
Twelve months ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net cash provided by (used in) operating activities
|
|
|
$
|
294.1
|
|
|
|
$
|
25.4
|
|
|
|
$
|
410.7
|
|
|
|
$
|
188.5
|
|
|
Capital expenditures
|
|
|
|
(22.9
|
)
|
|
|
|
(21.9
|
)
|
|
|
|
(81.5
|
)
|
|
|
|
(82.8
|
)
|
|
Free Cash Flow
|
|
|
$
|
271.2
|
|
|
|
$
|
3.5
|
|
|
|
$
|
329.2
|
|
|
|
$
|
105.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
Twelve months ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
Income (Loss) from operations as reported
|
|
|
$
|
70.4
|
|
|
$
|
131.4
|
|
|
|
$
|
423.1
|
|
|
$
|
419.1
|
|
Roadbuilding related
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
3.4
|
|
Restructuring and related items
|
|
|
|
31.5
|
|
|
|
(10.0
|
)
|
|
|
|
42.2
|
|
|
|
57.6
|
|
Portfolio Management
|
|
|
|
16.2
|
|
|
|
—
|
|
|
|
|
16.2
|
|
|
|
—
|
|
Income (Loss) from operations as adjusted
|
|
|
$
|
118.1
|
|
|
$
|
121.4
|
|
|
|
$
|
481.5
|
|
|
$
|
480.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full year ended
December 31, 2014
|
|
|
Full year ended
December 31, 2013
|
|
|
|
|
Income (Loss)
|
|
|
|
|
|
Income (Loss)
|
|
|
Income (Loss)
|
|
|
|
|
|
Income (Loss)
|
|
|
|
|
from
|
|
|
|
|
|
from
|
|
|
from
|
|
|
|
|
|
from
|
|
|
|
|
operations,
|
|
|
Adjust-
|
|
|
operations, as
|
|
|
operations,
|
|
|
Adjust-
|
|
|
operations, as
|
|
|
|
|
as reported
|
|
|
ments
|
|
|
adjusted
|
|
|
as reported
|
|
|
ments
|
|
|
adjusted
|
|
AWP
|
|
|
$
|
302.8
|
|
|
|
$
|
—
|
|
|
|
$
|
302.8
|
|
|
|
$
|
325.8
|
|
|
|
$
|
1.8
|
|
|
$
|
327.6
|
|
|
Construction
|
|
|
|
1.2
|
|
|
|
|
—
|
|
|
|
|
1.2
|
|
|
|
|
(24.8
|
)
|
|
|
|
2.6
|
|
|
|
(22.2
|
)
|
|
Cranes
|
|
|
|
85.9
|
|
|
|
|
—
|
|
|
|
|
85.9
|
|
|
|
|
110.5
|
|
|
|
|
10.4
|
|
|
|
120.9
|
|
|
MHPS
|
|
|
|
(17.2
|
)
|
|
|
|
75.1
|
|
|
|
|
57.9
|
|
|
|
|
(41.8
|
)
|
|
|
|
46.2
|
|
|
|
4.4
|
|
|
MP
|
|
|
|
60.6
|
|
|
|
|
—
|
|
|
|
|
60.6
|
|
|
|
|
71.8
|
|
|
|
|
—
|
|
|
|
71.8
|
|
|
Corporate
|
|
|
|
(10.2
|
)
|
|
|
|
(16.7
|
)
|
|
|
|
(26.9
|
)
|
|
|
|
(22.4
|
)
|
|
|
|
—
|
|
|
|
(22.4
|
)
|
|
Total
|
|
|
$
|
423.1
|
|
|
|
$
|
58.4
|
|
|
|
$
|
481.5
|
|
|
|
$
|
419.1
|
|
|
|
$
|
61.0
|
|
|
$
|
480.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2014
|
|
|
Three months ended
December 31, 2013
|
|
|
|
|
Income (Loss)
|
|
|
|
|
|
Income (Loss)
|
|
|
Income (Loss)
|
|
|
|
|
|
Income (Loss)
|
|
|
|
|
from
|
|
|
|
|
|
from
|
|
|
from
|
|
|
|
|
|
from
|
|
|
|
|
operations,
|
|
|
Adjust-
|
|
|
operations,
|
|
|
operations,
|
|
|
Adjust-
|
|
|
operations, as
|
|
|
|
|
as reported
|
|
|
ments
|
|
|
as adjusted
|
|
|
as reported
|
|
|
ments
|
|
|
adjusted
|
|
AWP
|
|
|
$
|
38.7
|
|
|
|
$
|
—
|
|
|
|
$
|
38.7
|
|
|
|
$
|
71.5
|
|
|
|
$
|
1.8
|
|
|
|
$
|
73.3
|
|
|
Construction
|
|
|
|
0.6
|
|
|
|
|
—
|
|
|
|
|
0.6
|
|
|
|
|
—
|
|
|
|
|
(4.2
|
)
|
|
|
|
(4.2
|
)
|
|
Cranes
|
|
|
|
34.6
|
|
|
|
|
—
|
|
|
|
|
34.6
|
|
|
|
|
25.7
|
|
|
|
|
(4.5
|
)
|
|
|
|
21.2
|
|
|
MHPS
|
|
|
|
(31.2
|
)
|
|
|
|
64.4
|
|
|
|
|
33.2
|
|
|
|
|
26.0
|
|
|
|
|
(3.1
|
)
|
|
|
|
22.9
|
|
|
MP
|
|
|
|
18.2
|
|
|
|
|
—
|
|
|
|
|
18.2
|
|
|
|
|
16.7
|
|
|
|
|
—
|
|
|
|
|
16.7
|
|
|
Corporate
|
|
|
|
9.5
|
|
|
|
|
(16.7
|
)
|
|
|
|
(7.2
|
)
|
|
|
|
(8.5
|
)
|
|
|
|
—
|
|
|
|
|
(8.5
|
)
|
|
Total
|
|
|
$
|
70.4
|
|
|
|
$
|
47.7
|
|
|
|
$
|
118.1
|
|
|
|
$
|
131.4
|
|
|
|
$
|
(10.0
|
)
|
|
|
$
|
121.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. 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 '14
|
|
|
Sep '14
|
|
|
Jun '14
|
|
|
Mar '14
|
|
|
Dec '13
|
|
Provision for (benefit from) income taxes
|
|
|
$
|
(41.5
|
)
|
|
|
$
|
27.7
|
|
|
|
$
|
40.0
|
|
|
|
$
|
11.5
|
|
|
|
|
|
|
Divided by: Income (loss) before income taxes
|
|
|
|
39.4
|
|
|
|
|
86.4
|
|
|
|
|
128.4
|
|
|
|
|
43.0
|
|
|
|
|
|
|
Effective tax rate
|
|
|
|
(105.3
|
)%
|
|
|
|
32.1
|
%
|
|
|
|
31.2
|
%
|
|
|
|
26.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations as adjusted
|
|
|
$
|
72.3
|
|
|
|
$
|
119.7
|
|
|
|
$
|
162.6
|
|
|
|
$
|
76.3
|
|
|
|
|
|
|
Multiplied by: 1 minus Effective tax rate
|
|
|
|
205.3
|
%
|
|
|
|
67.9
|
%
|
|
|
|
68.8
|
%
|
|
|
|
73.3
|
%
|
|
|
|
|
|
Adjusted net operating income (loss) after tax
|
|
|
$
|
148.4
|
|
|
|
$
|
81.3
|
|
|
|
$
|
111.9
|
|
|
|
$
|
55.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (as defined above)
|
|
|
$
|
1,788.8
|
|
|
|
$
|
1,851.9
|
|
|
|
$
|
1,922.5
|
|
|
|
$
|
2,055.9
|
|
|
|
$
|
1,976.7
|
|
|
Less: Cash and cash equivalents
|
|
|
|
(478.2
|
)
|
|
|
|
(344.5
|
)
|
|
|
|
(364.3
|
)
|
|
|
|
(390.5
|
)
|
|
|
|
(408.1
|
)
|
|
Debt less Cash and cash equivalents
|
|
|
$
|
1,310.6
|
|
|
|
$
|
1,507.4
|
|
|
|
$
|
1,558.2
|
|
|
|
$
|
1,665.4
|
|
|
|
$
|
1,568.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Terex Corporation stockholders’ equity as adjusted
|
|
|
$
|
1,843.2
|
|
|
|
$
|
2,010.5
|
|
|
|
$
|
2,138.5
|
|
|
|
$
|
2,012.0
|
|
|
|
$
|
2,092.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt less Cash and cash equivalents plus Total Terex Corporation
stockholders’ equity as adjusted
|
|
|
$
|
3,153.8
|
|
|
|
$
|
3,517.9
|
|
|
|
$
|
3,696.7
|
|
|
|
$
|
3,677.4
|
|
|
|
$
|
3,661.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014 ROIC
|
|
|
|
11.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net operating income (loss) after tax (last 4 quarters)
|
|
|
$
|
397.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Debt less Cash and cash equivalents plus Total Terex
Corporation stockholders’ equity as adjusted (5 quarters)
|
|
|
$
|
3,541.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of income (loss) from operations:
|
|
|
Dec '14
|
|
Sep '14
|
|
Jun '14
|
|
Mar '14
|
|
|
Income (loss) from operations as reported
|
|
|
$
|
70.4
|
|
|
|
$
|
116.8
|
|
|
|
$
|
160.9
|
|
|
|
$
|
75.0
|
|
|
|
|
|
|
(Income) loss from operations for TFS
|
|
|
|
1.9
|
|
|
|
|
2.9
|
|
|
|
|
1.7
|
|
|
|
|
1.3
|
|
|
|
|
|
|
Income (loss) from operations as adjusted
|
|
|
$
|
72.3
|
|
|
|
$
|
119.7
|
|
|
|
$
|
162.6
|
|
|
|
$
|
76.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Terex Corporation stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Terex Corporation stockholders’ equity as reported
|
|
|
$
|
2,005.9
|
|
|
|
$
|
2,217.7
|
|
|
|
$
|
2,331.6
|
|
|
|
$
|
2,183.2
|
|
|
|
$
|
2,190.1
|
|
|
TFS assets
|
|
|
|
(162.7
|
)
|
|
|
|
(207.2
|
)
|
|
|
|
(193.1
|
)
|
|
|
|
(171.2
|
)
|
|
|
|
(151.6
|
)
|
|
Redeemable noncontrolling interest
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
53.9
|
|
|
Terex Corporation stockholders’ equity as adjusted
|
|
|
$
|
1,843.2
|
|
|
|
$
|
2,010.5
|
|
|
|
$
|
2,138.5
|
|
|
|
$
|
2,012.0
|
|
|
|
$
|
2,092.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Three Month Annualized Net Sales is calculated using the
net sales for the quarter multiplied by four.
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
|
2014
|
|
|
|
2013
|
|
Fourth Quarter Net Sales
|
|
|
|
|
$1,789.4
|
|
|
|
$1,811.8
|
|
|
|
|
|
|
x 4
|
|
|
|
x 4
|
|
Trailing Three Month Annualized Net Sales
|
|
|
|
|
$7,157.6
|
|
|
|
$7,247.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2014
|
|
|
Sept 30, 2014
|
|
|
Dec 31, 2013
|
|
Inventories
|
|
|
$
|
1,460.9
|
|
|
|
$
|
1,676.8
|
|
|
|
$
|
1,613.2
|
|
|
Trade Receivables
|
|
|
|
1,086.4
|
|
|
|
|
1,196.2
|
|
|
|
|
1,176.8
|
|
|
Less: Trade Accounts Payable
|
|
|
|
(736.1
|
)
|
|
|
|
(715.3
|
)
|
|
|
|
(689.1
|
)
|
|
Less: Customer Advances
|
|
|
|
(197.4
|
)
|
|
|
|
(281.6
|
)
|
|
|
|
(302.1
|
)
|
|
Total Working Capital
|
|
|
$
|
1,613.8
|
|
|
|
$
|
1,876.1
|
|
|
|
$
|
1,798.8
|
|
Source: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943
Vice President,
Investor Relations
thomas.gelston@terex.com