-
Q1 Earnings per Share $0.59, $0.55 as adjusted
-
Increased sales 25% and backlog 54%, growth in every segment
-
Disciplined capital allocation results in 5 million shares
repurchased for $205 million
-
Increasing 2018 full year EPS guidance from $2.35 - $2.65 to $2.70
- $3.00
WESTPORT, Conn.--(BUSINESS WIRE)--
Terex Corporation (NYSE:TEX) today announced first quarter 2018 income
from continuing operations of $47.6 million, or $0.59 per share, on net
sales of $1.3 billion. In the first quarter of 2017, the reported income
from continuing operations was $(60.3) million, or $(0.57) per share, on
net sales of $1.0 billion. Income from continuing operations, as
adjusted, for the first quarter of 2018 was $44.6 million, or $0.55 per
share. This compares to income from continuing operations, as adjusted,
of $5.5 million or $0.05 per share in the first quarter of 2017. The
Glossary at the end of this press release contains further details
regarding these non-GAAP measures.
“Terex significantly improved its first quarter earnings per share
compared to last year,” stated John L. Garrison, Terex President and
CEO. “This strong financial performance reflects the improvements made
to our operations and capital structure, and broad-based improvements in
our global markets.”
“Aerial Work Platforms (AWP) and Materials Processing (MP) are off to a
great start,” Mr. Garrison continued. “Our Cranes segment improved
compared to the prior year, but performed below our expectations in the
quarter.”
“We continue to invest in our Execute to Win business system, which
remains focused on enhancing our capabilities in Commercial Excellence,
Lifecycle Solutions and Strategic Sourcing” commented Mr. Garrison. “We
are seeing benefits from Commercial Excellence in our performance, and
expect to start to realize benefits from Strategic Sourcing in the
second half of 2018.”
“We remain committed to our Disciplined Capital Allocation Strategy.
During the quarter we repurchased approximately five million shares of
Terex stock for $205 million through our previously announced program,"
said Mr. Garrison.
“We are increasing our full year 2018 adjusted EPS guidance from $2.35
to $2.65 to $2.70 to $3.00,” continued Mr. Garrison. “This improvement
reflects our first quarter results and capital market actions, and our
expectation for continued growth and operational improvements over the
balance of 2018.”
Non-GAAP Measures and Other Items
Results of operations reflect 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.
The Company provides guidance on a non-GAAP basis as the Company cannot
predict with a reasonable degree of certainty the timing and magnitude
of future charges that would be included in the reported GAAP results.
The Glossary at the end of this press release contains further details
about this subject.
Conference call
The Company has scheduled a one hour conference call to review the
financial results on Wednesday, May 2, 2018 at 8:30 a.m. ET. John L.
Garrison, President and CEO, will host the call. A simultaneous webcast
of this call will be available from the Investor Relations section of www.terex.com,
under Latest Events & Presentations. Participants are encouraged to
access the call 10 minutes prior to the starting time. The call will
also be archived in the “Investor Relations” section of the Company's
website in the Event Archive.
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; 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 highly 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; we are dependent upon third-party suppliers, making
us vulnerable to supply shortages and price increases; the imposition of
tariffs and related actions on trade by the U.S. and foreign
governments; our business is global and subject to changes in exchange
rates between currencies, commodity price changes, 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, intellectual
property 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; our ability to
successfully implement our Execute to Win strategy; 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.
About Terex
Terex Corporation is a global manufacturer of lifting and material
processing products and services that deliver lifecycle solutions to
maximize customer return on investment.
The company reports in
three business segments: Aerial Work Platforms, Cranes, and Materials
Processing.
Terex delivers lifecycle solutions to a broad range
of 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.
|
TEREX CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
(unaudited)
|
(in millions, except per share data)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2018
|
|
2017
|
Net sales
|
|
$
|
1,260.9
|
|
|
$
|
1,006.9
|
|
Cost of goods sold
|
|
|
(1,030.0
|
)
|
|
|
(854.6
|
)
|
Gross profit
|
|
|
230.9
|
|
|
|
152.3
|
|
Selling, general and administrative expenses
|
|
|
(159.6
|
)
|
|
|
(157.0
|
)
|
Income (loss) from operations
|
|
|
71.3
|
|
|
|
(4.7
|
)
|
Other income (expense)
|
|
|
|
|
|
|
Interest income
|
|
|
3.4
|
|
|
|
1.8
|
|
Interest expense
|
|
|
(16.0
|
)
|
|
|
(21.4
|
)
|
Loss on early extinguishment of debt
|
|
|
(0.7
|
)
|
|
|
(45.4
|
)
|
Other income (expense) – net
|
|
|
1.0
|
|
|
|
(18.9
|
)
|
Income (loss) from continuing operations before income taxes
|
|
|
59.0
|
|
|
|
(88.6
|
)
|
(Provision for) benefit from income taxes
|
|
|
(11.4
|
)
|
|
|
28.3
|
|
Income (loss) from continuing operations
|
|
|
47.6
|
|
|
|
(60.3
|
)
|
Gain (loss) on disposition of discontinued operations- net of tax
|
|
|
2.7
|
|
|
|
55.7
|
|
Net income (loss)
|
|
$
|
50.3
|
|
|
$
|
(4.6
|
)
|
Basic Earnings (Loss) per Share
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.60
|
|
|
$
|
(0.57
|
)
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
0.03
|
|
|
|
0.53
|
|
Net income (loss)
|
|
$
|
0.63
|
|
|
$
|
(0.04
|
)
|
Diluted Earnings (Loss) per Share
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.59
|
|
|
$
|
(0.57
|
)
|
Gain (loss) on disposition of discontinued operations – net of tax
|
|
|
0.03
|
|
|
|
0.53
|
|
Net income (loss)
|
|
$
|
0.62
|
|
|
$
|
(0.04
|
)
|
Weighted average number of shares outstanding in per share
calculation
|
|
|
|
|
|
|
Basic
|
|
|
79.7
|
|
|
|
105.2
|
|
Diluted
|
|
|
81.7
|
|
|
|
105.2
|
|
|
|
|
|
|
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(unaudited)
|
(in millions, except par value)
|
|
|
|
March 31, 2018
|
|
December 31,
2017
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
447.9
|
|
$
|
626.5
|
Other current assets
|
|
|
1,891.8
|
|
|
1,756.5
|
Total current assets
|
|
|
2,339.7
|
|
|
2,383.0
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and equipment – net
|
|
|
334.6
|
|
|
311.0
|
Other non-current assets
|
|
|
745.8
|
|
|
768.5
|
Total non-current assets
|
|
|
1,080.4
|
|
|
1,079.5
|
Total assets
|
|
$
|
3,420.1
|
|
$
|
3,462.5
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Notes payable and current portion of long-term debt
|
|
$
|
5.2
|
|
$
|
5.2
|
Other current liabilities
|
|
|
1,029.4
|
|
|
1,030.3
|
Total current liabilities
|
|
|
1,034.6
|
|
|
1,035.5
|
Non-current liabilities
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
1,077.8
|
|
|
979.6
|
Other non-current liabilities
|
|
|
228.8
|
|
|
224.9
|
Total non-current liabilities
|
|
|
1,306.6
|
|
|
1,204.5
|
Total liabilities
|
|
|
2,341.2
|
|
|
2,240.0
|
|
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
1,078.9
|
|
|
1,222.5
|
Total liabilities and stockholders’ equity
|
|
$
|
3,420.1
|
|
$
|
3,462.5
|
|
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
|
(unaudited)
|
(in millions)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2018
|
|
2017
|
Operating Activities
|
|
|
|
|
Net income (loss)
|
|
$
|
50.3
|
|
|
$
|
(4.6
|
)
|
Depreciation and amortization
|
|
|
16.0
|
|
|
|
16.3
|
|
Changes in operating assets and liabilities and non-cash charges
|
|
|
(110.7
|
)
|
|
|
(176.3
|
)
|
Net cash provided by (used in) operating activities
|
|
|
(44.4
|
)
|
|
|
(164.6
|
)
|
Investing Activities
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(34.5
|
)
|
|
|
(10.6
|
)
|
Other investing activities, net
|
|
|
19.2
|
|
|
|
1,058.9
|
|
Net cash provided by (used in) investing activities
|
|
|
(15.3
|
)
|
|
|
1,048.3
|
|
Financing Activities
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(128.3
|
)
|
|
|
(576.2
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
9.3
|
|
|
|
7.0
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(178.7
|
)
|
|
|
314.5
|
|
Cash and cash equivalents at beginning of period
|
|
|
630.1
|
|
|
|
501.9
|
|
Cash and cash equivalents at end of period
|
|
$
|
451.4
|
|
|
$
|
816.4
|
|
|
TEREX CORPORATION AND SUBSIDIARIES
|
SEGMENT RESULTS DISCLOSURE
|
(unaudited)
|
(in millions)
|
|
|
|
Q1
|
|
|
2018
|
|
2017
|
|
|
|
|
|
% of
|
|
|
|
|
% of
|
|
|
Net
Sales
|
|
|
Net
Sales
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,260.9
|
|
|
|
|
$
|
1,006.9
|
|
|
|
Income (loss) from operations
|
|
$
|
71.3
|
|
|
5.7
|
%
|
|
$
|
(4.7
|
)
|
|
(0.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
AWP
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
638.9
|
|
|
|
|
$
|
472.4
|
|
|
|
Income from operations
|
|
$
|
60.1
|
|
|
9.4
|
%
|
|
$
|
21.7
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Cranes
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
314.0
|
|
|
|
|
$
|
263.9
|
|
|
|
Loss from operations
|
|
$
|
(9.7
|
)
|
|
(3.1
|
)%
|
|
$
|
(31.9
|
)
|
|
(12.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
MP
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
303.3
|
|
|
|
|
$
|
249.1
|
|
|
|
Income from operations
|
|
$
|
38.9
|
|
|
12.8
|
%
|
|
$
|
25.6
|
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Corp and Other / Eliminations
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4.7
|
|
|
|
|
$
|
21.5
|
|
|
|
Loss from operations
|
|
$
|
(18.0
|
)
|
|
*
|
|
$
|
(20.1
|
)
|
|
*
|
* - Not a meaningful percentage
|
|
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 share data and percentages), and are as of or for
the period ended March 31, 2018, unless otherwise indicated.
2018 Outlook: The Company’s 2018 outlook for earnings per share
and 2018 full year adjusted forecasted tax rate are non-GAAP financial
measures because they exclude items such as restructuring and other
related charges, transformation costs, the impact of the release of tax
valuation allowances, gains and losses on divestitures and other unusual
items such as the impact of the 2017 US tax law changes. The Company is
not able to reconcile these forward-looking non-GAAP financial measures
to their most directly comparable forward-looking GAAP financial
measures without unreasonable efforts because the Company is unable to
predict with a reasonable degree of certainty the exact timing and
impact of such items. The unavailable information could have a
significant impact on the Company’s full-year 2018 GAAP financial
results. Adjusted EPS provides guidance to investors about the Company's
EPS expectations excluding restructuring and other charges that the
Company does not believe is reflective of its ongoing operations.
After-tax gains or losses and per share amounts 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 diluted
weighted average shares outstanding to provide the impact on earnings
per share. The Company highlights the impact of these items because when
discussing earnings per share, the Company adjusts for items it believes
are not reflective of ongoing operating activities in the periods.
Restructuring and related charges are a recurring item as Terex’s
restructuring programs usually require more than one year to fully
implement and the Company is continually seeking to take actions that
could enhance its efficiency. Although recurring, these charges are
subject to significant fluctuations from period to period due to varying
levels of restructuring activity and the inherent imprecision in the
estimates used to recognize the costs and taxes associated with
severance and termination benefits in the countries in which the
restructuring actions occur.
|
|
|
|
|
|
|
|
|
Q1 2018
|
|
Income (loss) from Continuing Operations before Taxes
|
|
(Provision for) benefit from Income Taxes (1)
|
|
Income (loss) from Continuing Operations
|
|
Earnings (loss) per share (2)
|
As Reported (GAAP)
|
|
$
|
59.0
|
|
|
(11.4
|
)
|
|
47.6
|
|
|
$
|
0.59
|
|
Restructuring & Related
|
|
(2.2
|
)
|
|
(0.2
|
)
|
|
(2.4
|
)
|
|
(0.03
|
)
|
Transformation
|
|
7.3
|
|
|
(1.2
|
)
|
|
6.1
|
|
|
0.07
|
|
Extinguishment of Debt
|
|
0.7
|
|
|
(0.1
|
)
|
|
0.6
|
|
|
0.01
|
|
Other
|
|
(6.9
|
)
|
|
0.6
|
|
|
(6.3
|
)
|
|
(0.08
|
)
|
Tax & Interim Period (3)
|
|
—
|
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(0.01
|
)
|
As Adjusted (Non-GAAP)
|
|
$
|
57.9
|
|
|
(13.3
|
)
|
|
44.6
|
|
|
$
|
0.55
|
|
|
|
|
|
|
|
|
|
|
(1) Tax effect on adjustments is calculated using the applicable
jurisdictional blended tax rate
|
(2) Based on diluted average shares outstanding of 81.7 million
|
(3) Includes adjustments without related pre-tax amounts and the tax
amount necessary to align quarterly tax expense (benefit) with the
forecasted full year as adjusted effective tax rate
|
|
|
|
|
|
|
|
|
|
|
Q1 2017
|
|
Income (loss) from Continuing Operations before Taxes
|
|
(Provision for) benefit from Income Taxes (1)
|
|
Income (loss) from Continuing Operations
|
|
Earnings (loss) per share (2)
|
As Reported (GAAP)
|
|
$
|
(88.6
|
)
|
|
28.3
|
|
|
(60.3
|
)
|
|
$
|
(0.57
|
)
|
Restructuring & Related
|
|
9.0
|
|
|
(1.5
|
)
|
|
7.5
|
|
|
0.07
|
|
Deal Related
|
|
32.8
|
|
|
(12.7
|
)
|
|
20.1
|
|
|
0.19
|
|
Transformation
|
|
8.4
|
|
|
(3.0
|
)
|
|
5.4
|
|
|
0.05
|
|
Extinguishment of Debt
|
|
45.9
|
|
|
(16.4
|
)
|
|
29.5
|
|
|
0.28
|
|
Tax & Interim Period (3)
|
|
—
|
|
|
3.3
|
|
|
3.3
|
|
|
0.03
|
|
As Adjusted (Non-GAAP)
|
|
$
|
7.5
|
|
|
(2.0
|
)
|
|
5.5
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
(1) Tax effect on adjustments is calculated using the applicable
jurisdictional blended tax rate
|
(2) Based on diluted weighted average shares outstanding of 105.2
million
|
(3) Includes adjustments without related pre-tax amounts and the tax
amount necessary to align quarterly tax expense (benefit) with the
forecasted full year as adjusted effective tax rate
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20180501006643/en/
Terex Corporation
Brian Henry, 203-222-5954
Senior Vice
President, Business Development and Investor Relations
[email protected]
Source: Terex Corporation