News Column

TEREX ANNOUNCES FIRST QUARTER 2014 RESULTS

May 2, 2014



ENP Newswire - 02 May 2014

Release date- 30042014 - WESTPORT, CT - Terex Corporation (NYSE: TEX) today announced income from continuing operations of $32.6 million, or $0.28 per share for the first quarter of 2014, as compared to income from continuing operations of $19.3 million, or $0.17 per share for the first quarter of 2013.

Excluding the impact of certain items totaling $5.8 million, or $0.05 per share, income from continuing operations as adjusted in the first quarter of 2013 was $25.1 million, or $0.22 per share. The glossary at the end of this press release contains details regarding the impact of certain items in the first quarter of 2013.

Net sales were $1,654.6 million in the first quarter of 2014, flat with the $1,653.7 million in the first quarter of 2013. Income from operations was $75.0 million in the first quarter of 2014, an improvement of $9.4 million when compared to income from operations of $65.6 million in the first quarter of 2013. Excluding the impact of certain items totaling $6.1 million, income from operations as adjusted in the first quarter of 2013 was $71.7 million.

'We remain encouraged by the performance of our Aerial Work Platform (AWP) segment, which delivered excellent results in the first quarter,' commented Ron DeFeo, Terex Chairman and Chief Executive Officer. 'Performance across our remaining businesses was mixed. The Materials Processing (MP), Construction and Material Handling & Port Solutions (MHPS) segments all delivered quarters roughly in-line with our expectations. While both the MHPS and Construction segments had an operating loss in the quarter, we planned for and continue to expect better operating results from these businesses for the balance of 2014. Our Cranes segment had a disappointing first quarter, but recent order trends suggest improvements as the year progresses, particularly in the second half of the year.'

Outlook: 'The Company's overall outlook for 2014 has not changed,' Mr. DeFeo added. 'We expect continued strength from our AWP segment and improvement from our other segments throughout the remainder of 2014. We reiterate our annual outlook for earnings per share of between $2.50 and $2.80, excluding restructuring and other unusual items, on net sales of between $7.3 billion and $7.7 billion. Terex remains focused on improving profit through organic means, integrating the businesses more thoroughly, and generating free cash flow.'

Capital Structure: 'Capital allocation activities within the quarter proceeded as planned' commented Kevin Bradley, Terex Senior Vice President and Chief Financial Officer. 'During the quarter we completed the squeeze out of minority shares of Terex Material Handling & Port Solutions AG for $71 million. We also repurchased $33 million of Terex Corporation shares within the quarter for a cumulative total of $63 million since the inception of the program in December 2013.'

The Company's liquidity at March 31, 2014 decreased by $104.4 million compared to December 31, 2013 and totaled $631.8 million, which was comprised of cash balances of $390.5 million and borrowing availability under the Company's revolving credit facilities of $241.3 million.

Return on Invested Capital (ROIC) was 8.6% for the trailing twelve months ended March 31, 2014.

Taxes: The effective tax rate for the first quarter of 2014 was 26.7% as compared to an effective tax rate of 45.2% for the first quarter of 2013. The lower effective tax rate in the first quarter of 2014 was primarily due to the reduced impact of losses not benefited and greater benefit from uncertain tax provision releases than the first quarter of 2013. The Company still expects the effective tax rate to be between 33% and 35% for 2014.

Backlog: Backlog for orders deliverable during the next twelve months was $2,363.7 million at March 31, 2014, an increase of 29.3% from December 31, 2013 and an increase of 10.3% from March 31, 2013. Backlog for all segments increased sequentially with AWP and Cranes being the largest contributors to the increase. The Glossary contains further details regarding backlog.

All results are for 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. Certain financial measures are shown in italics the first time referenced and are described in the text or the Glossary at the end of this press release.

Conference call

The Company has scheduled a one hour conference call to review the financial results on Thursday, May 1, 2014 at 8:30 a.m. ET. Ronald M. DeFeo, Chairman and CEO, will host the call. A simultaneous webcast of this call will be available on the Company's website, www.terex.com. To listen to the call, select 'Investor Relations' in the 'About Terex' section on the home page and then click on the webcast microphone link. Participants are encouraged to access the call 10 minutes prior to the starting time. The call will also be archived on the Company's website under 'Audio Archives' in the 'Investor Relations' section of the website.

Contact Information:

Tom Gelston

Vice President, Investor Relations

Phone: 203-222-5943

Email: thomas.gelston@terex.com

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; our ability to successfully integrate acquired businesses; 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 very competitive and is affected by our cost structure, pricing, product initiatives and other actions taken by competitors; our ability to timely manufacture and deliver products to customers; 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; impairment in the carrying value of goodwill and other indefinite-lived intangible assets; our ability to obtain parts and components from suppliers on a timely basis at competitive prices; our business is global and subject to changes in exchange rates between currencies, 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, patent claims, class action lawsuits and other liabilities; our ability to comply with an injunction and related obligations resulting from the settlement of an investigation by the United States Securities and Exchange Commission ('SEC'); our implementation of a global enterprise resource planning system and its performance; 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.

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME: See Full Press Release at:

http://www.terex.com/en/news-events/news-press-releases/UCM03_092213.html


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Source: ENP Newswire


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