Increased Sales 4%, up 8% excluding the impact of FX
Terex Corporation announced their second quarter 2019 income from continuing operations of $81.6 million, or $1.14 per share, on net sales of $1.3 billion. In the second quarter of 2018, the reported income from continuing operations was $84.2 million, or $1.10 per share, on net sales of $1.3 billion. Income from continuing operations, as adjusted, for the second quarter of 2019 was $86.9 million, or $1.21 per share. This compares to income from continuing operations, as adjusted, of $101.1 million or $1.32 per share in the second quarter of 2018.
“Terex continues to grow, with FX-neutral revenues up 8% in the second quarter” stated John L. Garrison, Terex Chairman and CEO. “Global demand for our leading products and services remained generally stable at a healthy level, and we continued to meet the needs of our diverse customer base.”
“We generated $168 million of free cash flow in the quarter,” continued Mr. Garrison. “This strong cash generation performance reflects our global team’s continuing focus on improving working capital efficiency. Furthermore, we expect to complete the sale of Demag® Mobile Cranes in the coming days, realizing cash proceeds of approximately $125 million.”
“Our improving financial results, with adjusted operating margins greater than 10% and adjusted EPS increasing 23% from the adjusted EPS we presented in our Q2 earnings release in July 2018, demonstrate the impact of executing our Focus, Simplify and Execute to Win strategy,” stated Mr. Garrison.
“Materials Processing (MP) continued its excellent performance, increasing sales on a FX-neutral basis by 13% and expanding its operating margin to 15.4%, representing a 220 basis point improvement compared to last year.” Mr. Garrison added, “MP continues to grow across its broad global portfolio as customers convert to more efficient mobile material processing equipment.”
“Aerial Work Platforms (AWP) also grew in the second quarter, achieving global sales growth of 5% on an FX-neutral basis, including strong growth in Asia. AWP margin performance in the quarter was adversely impacted by the weak Euro, lower production volume to align inventory with global market demand, and product mix.” Mr. Garrison continued, “Overall, we expect AWP’s financial performance in the second half of 2019 to be similar to the second half of 2018.”
Mr. Garrison concluded, “Based on our first half performance, and changes to the outlook in AWP for the balance of 2019, including lower than previously expected sales growth and reduced production volume, adverse foreign exchange rates and product mix, we expect full year EPS to be between $3.40 to $3.80, excluding restructuring, transformation investments, and other unusual items, on net sales of approximately $4.6 billion. We reaffirm our full year free cash flow guidance of $165 million.”
