Terex reports strong second half
Terex Corp. reported income from continuing operations of $209 million, or $1.79 per share, on net sales of $7.1 billion for the full year 2013.
For the full year 2012, income from continuing operations was $77 million, or $0.68 per share, on net sales of $7 billion. 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.
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.
Terex chairman and CEO Ron DeFeo said, “Overall, 2013 was a good year and I am pleased with the improvements and progress underway at Terex. 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."
The AWP segment continued 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 remained 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," DeFeo said. "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.”
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.”
Terex 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.
“Our 2014 guidance reflects the benefits of internal cost initiatives, capital structure improvements and some anticipated net sales growth," DeFeo explained. "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.”
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