Terex Announces Fourth Quarter and Full-Year 2019 Results

WESTPORT, Conn., Feb. 13, 2020 (GLOBE NEWSWIRE) — Terex Corporation (NYSE: TEX) today announced fourth quarter 2019 income from continuing operations of $18.5 million, or $0.26 per share, on net sales of $885.0 million.  In the fourth quarter of 2018, the reported income from continuing operations was $19.6 million, or $0.26 per share, on net sales of $1,048.8 million.  Income from continuing operations, as adjusted, for the fourth quarter of 2019 was $25.7 million, or $0.36 per share. This compares to income from continuing operations, as adjusted, of $59.3 million or $0.80 per share in the fourth quarter of 2018. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.
For the full year 2019, Terex reported income from continuing operations of $209.7 million, or $2.92 per share, on net sales of $4.4 billion compared with income from continuing operations of $241.7 million, or $3.14 per share, on net sales of $4.5 billion for the full year 2018.  Income from continuing operations, as adjusted, for the full year 2019 was $233.5 million, or $3.25 per share, compared with $311.0 million, or $4.04 per share for the full year 2018.AWP’s 2019 results reflected cautious customer sentiment in the segment’s largest markets, North America and Europe. When combined with manufacturing production below retail demand to reduce inventories, operating margins were challenged. Materials Processing delivered strong operational and financial performance with sales increasing approximately 4% and increasing operating margin to 14%.“Our fourth quarter operating results were generally in-line with our expectations on lower revenue and reflect continued challenging global market conditions for industrial equipment,” remarked John L. Garrison, Jr., Terex Chairman and CEO.“In 2019, we focused on safety, strengthening our balance sheet and investing in our products, manufacturing capability and parts and services. Despite the current industrial equipment market challenges, the longer-term outlook for our businesses remains healthy and points to a promising future for Terex,” Mr. Garrison said. “We are encouraged by the adoption of our equipment in emerging markets and are well-positioned to continue to deliver differentiated solutions to our customers.”Mr. Garrison continued, “we expect customers to remain cautious with their capital expenditure decisions in 2020. We expect full year EPS to be between $1.85 to $2.35 on net sales of approximately $3.9 billion.  In addition, we expect full year free cash flow to be approximately $140 million.”Mr. Garrison concluded, “We remain committed to investing in the development of innovative products and solutions for our customers, while continuously improving our operational performance. We believe this is a strong formula for long-term shareholder value creation.”Non-GAAP Measures and Other ItemsResults 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.Total amounts in tables of this release may not calculate due to rounding.Conference callThe Company has scheduled a conference call to review the financial results on Friday, February 14, 2020 beginning at 8:30 a.m. ET.  John L. Garrison, Jr. Chairman and CEO, will host the call.  A simultaneous webcast of this call can be accessed at https://investors.terex.com.  Participants are encouraged  to access the call 10 minutes prior to the starting time. The call will also be archived in the Event Archive at https://investors.terex.com.Forward-Looking StatementsThis 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; changes in import/export regulatory regimes and the escalation of global trade conflicts could continue to negatively impact sales of our products and our financial results; our financial results could be adversely impacted by the United Kingdom’s departure from the European Union; changes affecting the availability of the London Interbank Offer Rate may have consequences on us that cannot yet reasonably be predicted; our 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; exposure from 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; 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, 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 storage of sensitive data; 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 TerexTerex Corporation is a global manufacturer of aerial work platforms, materials processing and crane products and services that deliver lifecycle solutions to maximize customer return on investment.  The Company reports in two business segments: Aerial Work Platforms 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) to make information available to its investors and the market.Contact Information

Bay Street News

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt

Start typing and press Enter to search