Terex Corporation has announced third quarter 2017 income from continuing operations of $56.6 million, or $0.63 per share, on net sales of $1.1 billion. In the third quarter of 2016, the reported income from continuing operations was $33.3 million, or $0.31 per share, on net sales of $1.1 billion. Income from continuing operations, as adjusted, for the third quarter of 2017 was $45.0 million, or $0.50 per share. This compares to income from continuing operations, as adjusted, of $19.0 million or $0.17 per share in the third quarter of 2016.
“Our third quarter financial results demonstrate the accelerating momentum across Terex,” says John L. Garrison, Terex President and CEO. “All three segments increased sales, improved operating margin and grew backlog. Aerial Work Platforms (AWP) grew in North America and Europe, and expanded its operating margin. Cranes continued to be profitable in the third quarter, realizing benefits from its restructuring program. MaterialsProcessing(MP) continued its excellent performance, growing sales and operating margin for the fourth consecutive quarter.
“Having completed the first element of our strategy - focusing the portfolio on our three core segments, our strategy deployment efforts are concentrated on simplifying the company and implementing our Execute to Win business system,” adds Garrison. “Footprint consolidation progress in the quarter included completing the sale of manufacturing locations in Jinan, China and Bierbach, Germany. A fundamental component of Execute to Win is improving our commercial capabilities. In addition to enhancing our performance management tools and increasing process discipline in sales pipeline and account management we made key additions to our commercial leadership team.
“We continue to follow our disciplined capital allocation strategy. We monetized our remaining holdings of Konecranes shares for proceeds of $221 million, bringing the total consideration received by Terex for the disposition of MHPS to approximately $1.6 billion. This demonstrates the significant value to Terex shareholders that was created by the sale of our MHPS segment. In addition, we repurchased 6.4 million Terex shares for $254 million in the third quarter, bringing the total to 22.3 million shares repurchased for $770 million for the first 9 months of the year.”
Garrison concludes, “Considering our year to date results, our current view of market dynamics, operational expectations for the fourth quarter, and our capital market actions, we are increasing our full year adjusted EPS guidance to $1.20 to $1.30.”