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News » US » Loses grow at Terex » published 4 May 2017

Loses grow at Terex

Terex has reported a loss of US$60.3m from continuing operations in its results for the first quarter of year, compared to a loss of US$22.0m in the same period of 2016.

The company made net sales US$1.0bn in the first quarter of 2017, which was slightly down on the equivalent 2016 figure of US$1.1bn.

Excluding after-tax charges of US$65.8m, income from continuing operations, as adjusted, for the first quarter of 2017 was US$5.5m. This compares to income from continuing operations, as adjusted, of US$5.0m in the first quarter of 2016. The after-tax charges in the first quarter of 2017 were primarily for deal-related costs and the company’s refinancing activities.

“We are encouraged by our start to 2017,” said John Garrison, Terex president and CEO. “Our Material Processing (MP) segment had an excellent first quarter, growing sales and operating margin. Our Cranes segment results were consistent with our expectation that volumes would be down in the first half of 2017. In Aerial Work Platforms (AWP) sales were down as expected, and operating margins compressed on lower sales and the strength of the US dollar.”

He added: “Looking forward, we see positive momentum in our backlog, which grew year-over-year for the first time in eight quarters. Overall backlog grew 10%, rising in each of our segments. In particular, the North American market for AWP products is stronger than we anticipated, with positive customer sentiment tempering the impact of the replacement cycle. Year-over-year, AWP backlog grew 21% and bookings rose 38%. In addition, MP backlog grew 29%.”

There was substantial progress in executing the strategy to focus and simplify the company, and build capabilities in key commercial and operational areas, said Garrison. “In January we completed the MHPS sale. We also closed the sale of our loader backhoe business based in Coventry, England, and announced the sale of our India loader backhoe business. Our Cranes restructuring program is making progress, with the closing of our Jinan facility, and we continue to address structural costs. The Commercial Excellence program is providing greater visibility to sales opportunities and helping to improve our bookings and backlog.”

 

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This article was published on 4 May 2017 (last updated on 4 May 2017).

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