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Terex Corporation Message Board

  • bluecheese4u bluecheese4u Feb 19, 2013 8:31 PM Flag

    Terex Announces Fourth Quarter and Full Year 2012 Results and Provides 2013 Outlook

    Terex Announces Fourth Quarter and Full Year 2012 Results and Provides 2013 Outlook

    WESTPORT, Conn.--(BUSINESS WIRE)--Feb. 19, 2013-- Terex Corporation (NYSE: TEX) today announced income from continuing operations of $103.6 million, or $0.91 per share, on net sales of $7,348.4 million for the full year 2012, as compared to income from continuing operations of $38.6 million, or $0.35 per share, on net sales of $6,504.6 million for the full year 2011. Excluding the costs associated with debt repayments and certain other items during the year, income from continuing operations as adjusted in the full year 2012 was $1.83 per share. Excluding the gain on the sale of Bucyrus International shares and certain other items, income from continuing operations as adjusted for the full year 2011 was $0.46 per share. The Glossary at the end of this press release contains further details regarding these items.

    For the fourth quarter of 2012 loss from continuing operations was $30.7 million, or $0.28 per share, compared to a loss from continuing operations of $4.2 million, or $0.04 per share for the fourth quarter of 2011. Excluding the costs associated with debt repayment and certain other items in the fourth quarter of 2012, income from continuing operations as adjusted would have been $21.9 million, or $0.19 per share. Excluding the impact of certain items in the fourth quarter of 2011, income from continuing operations as adjusted would have been $27.3 million, or $0.25 per share.

    Net sales were $1,695.5 million in the fourth quarter of 2012, a decrease of 13.3% from $1,956.6 million in the fourth quarter of 2011. Income from operations was $27.9 million in the fourth quarter of 2012, a decrease of $3.2 million when compared to income from operations of $31.1 million in the fourth quarter of 2011. Excluding the impact of certain items in the fourth quarter of 2012, income from operations as adjusted was approximately $77 million. Excluding the impact of certain items in the fourth quarter of 2011, income from operations as adjusted was approximately $74 million.

    All results are for continuing operations, unless stated otherwise. All per share amounts are on a fully diluted basis.

    “We made significant progress in 2012. Our primary goals were margin improvement, cash generation and the integration of Demag Cranes AG. We made excellent advancement in these areas and more during the year,” commented Ron DeFeo Terex Chairman and CEO. “We were impacted in the second half of the year by challenging end markets in Europe and Asia but we still meaningfully improved our profitability, generated approximately $554 million of free cash flow, restructured and reduced our debt, and began to realize integration savings as planned.”

    Mr. DeFeo continued, “We are optimistic about our business as we begin 2013. We are seeing improvements in many of our end-markets and believe the macro-economic uncertainty that affected our fourth quarter performance will abate by the middle of 2013. Three segments performed well in 2012 and we expect this to continue in 2013. Our Aerial Work Platforms (AWP) segment is continuing to benefit from North American rental channel demand. Cranes performance is expected to remain strong in North America and in certain developing market regions. The Materials Processing (MP) segment performance remains solid. Both the Cranes and MP segments delivered double digit operating margin in the fourth quarter of 2012.”

    “The remaining two segments did not perform as well in 2012. We have made good progress with the integration of our Materials Handling & Port Solutions (MHPS) segment. Full year 2012 EBITDA as adjusted for MHPS was approximately $101 million. Benefits are expected from cost synergies globally to help offset weak European markets. In 2013, we expect to exceed the originally targeted $35 million in annual savings and weak markets should stabilize later in the year. The benefits of the big port projects we have won are also expected to be seen in our results in the back half of 2013 and 2014.

    “We continue to take strategic actions in our Construction segment. We recently announced an agreement to sell or exit the majority of our roadbuilding product lines. In addition, we plan to exit a number of compact construction component manufacturing businesses in Germany. Many of these businesses were generating poor returns and we expect these actions to improve operating results as the year progresses. We will continue to rationalize costs in our Construction businesses while pursuing non-traditional distribution channels such as the recently announced supply agreement with Takeuchi.”

    Outlook

    Entering 2013, the Company remains committed to profitable growth, generating cash and realizing the integration benefits of MHPS.

    Mr. DeFeo commented, “While balancing the different demand environments in each of our businesses, we are expecting 2013 earnings per share to be between $2.40 and $2.70 (excluding restructuring and unusual items) on net sales of between $7.9 billion and $8.3 billion. Similar to 2012, we expect to generate more than $500 million in free cash flow during 2013, with an aim to further reduce outstanding indebtedness.”

    “Over the past several years, we have been diversifying and repositioning our business portfolio to strengthen the competitiveness of our Company. We have moved from what was predominantly a mining and construction equipment company to a more diverse provider of lifting and material handling solutions that serve numerous end markets where we have leadership positions. We have established a 2015 earnings per share goal of $5 from $10 billion in net sales and with a 15% return on invested capital. We believe these targets can be achieved through organic growth and operational improvements.”

    Fourth Quarter Performance Review

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    Q4 2012 Terex Corporation Financial Results Conference Call Presentation

    phxDOTcorporate-irDOTnet/ExternalDOTFile?item=UGFyZW50SUQ9MTcyNDYzfENoaWxkSUQ9LTF8VHlwZT0z&t=1

 
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