Terex Corporation shares first quarter financial results

Terex Corporation, with U.S. headquarters in Westport, Connecticut, has announced its first quarter 2019 financial earnings.

The company earned net sales of $1.1 billion, up 2 percent versus the first quarter of 2018. Backlog was $1.7 billion, increasing by 2 percent versus Q1 of 2018 comparison, with global markets for all product categories generally stable at healthy levels, Terex says.

Terex Materials Processing (MP) had another strong quarter, the company says, with sales of $346 million, an increase of 10 percent versus Q1 2018. This increase was driven by continued strong global demand for crushing and screening products, material handlers, and pick and carry equipment, Terex says. MP’s backlog also continued to grow to $499 million, up 11 percent versus Q1 of 2018. Terex says it expects MP to deliver “excellent” results again in 2019.    

“Overall, we had a strong first quarter,” says John L. Garrison, Terex chairman and CEO. “Our improving financial results, with adjusted operating margins greater than 9 percent and adjusted EPS (earnings per share) increasing over 50 percent from what we presented in our Q1 earnings release in May 2018, clearly demonstrates the impact of executing our ‘Focus, Simplify and Execute to Win’ strategy.

“Building on an excellent 2018, Materials Processing increased sales and expanded operating margin again in the first quarter,” Garrison continues. “MP’s global markets remained strong and backlog continued to grow, increasing 17 percent on an FX-neutral basis.

“Aerial Work Platforms (AWP) started slower than last year but gained momentum throughout the quarter. Revenue and operating margin were impacted by severe weather across the United States, including a week-long closure of AWP’s principal manufacturing and distribution facilities in Washington state.  Additionally, the strength of the U.S. dollar, particularly against the Euro, represented a headwind in the quarter. AWP is well-positioned heading into the second quarter with $1.1 billion of backlog.

“The previously announced agreement to sell the Demag Mobile Cranes business remains on track to close mid-year, subject to government regulatory approvals and other customary closing conditions. We implemented our new two-segment structure and are moving forward with plans to further simplify our corporate organization and reduce general and administrative expenses.”

“We had a great start to 2019 thanks to strong global demand driven by construction activity, aggregate consumption and robust demand for scrap steel,” says Kieran Hegarty, the president of Terex MP. “We expect strong results to continue fueled by innovations that will excite our existing customers and geographic expansion that will enable us to serve more customers globally.

“For example, at bauma, MP showcased our OMNI by Terex tablet-based control system that uses I-O-T technology to revolutionize the crushing and screening jobsite,” Hegarty continues. “This will improve safety and productivity and further differentiate our MP product lines. Geographically, we’re seeing increasing demand for our products in regions such as India, so we are expanding our Hosur facility to better serve customers throughout the region.”   

More highlights from Terex’s earnings include:

• Income from continuing operations for the first quarter of 2019 was $57.2 million, compared to $68.7 million in the first quarter of 2018.
• Income from continuing operations, as adjusted, for the first quarter of 2019 was $62.3 million, compared $69.9 million the first quarter of 2018. 
  

For Terex Corporation’s full first quarter 2019 results, visit its website.