Terex Corporation announces a first quarter 2017 loss from continuing operations of $60.3 million, or ($0.57) per share, on net sales of $1.0 billion. In the first quarter of 2016, the reported loss from continuing operations was $22.0 million, or $0.20 per share, on net sales of $1.1 billion. Excluding after-tax charges of $65.8 million, income from continuing operations, as adjusted, for the first quarter of 2017 was $5.5 million, or $0.05 per share. This compares to income from continuing operations, as adjusted, of $5.0 million or $0.05 per share in the first quarter of 2016. The after-tax charges in the first quarter of 2017 were primarily for deal related costs and the company’s refinancing activities.
“We are encouraged by our start to 2017,” says John L. Garrison, Terex President and CEO. “Our Material Processing (MP) segment had an excellent first quarter, growing sales and operating margin. Our Cranes segment results were consistent with our expectation that volumes would be down in the first half of 2017. In Aerial Work Platforms (AWP) sales were down as expected, and operating margins compressed on lower sales and the strength of the U.S. dollar.
“Looking forward, we see positive momentum in our backlog, which grew year-over-year for the first time in eight quarters,” continues Garrison. “Overall backlog grew 10%, rising in each of our segments. In particular, the North American market for AWP products is stronger than we anticipated, with positive customer sentiment tempering the impact of the replacement cycle. Year-over-year, AWP backlog grew 21% and bookings rose 38%. In addition, MP backlog grew 29%.
“We made substantial progress executing our strategy to focus and simplify the company, and build capabilities in key commercial and operational areas,” adds Garrison. “In January, we completed the MHPS sale. We also closed the sale of our loader backhoe business based in Coventry, England, and announced the sale of our India loader backhoe business. Our Cranes restructuring program is making progress, with the closing of our Jinan facility, and we continue to address structural costs. The Commercial Excellence program is providing greater visibility to sales opportunities and helping to improve our bookings and backlog.
“We significantly improved our capital structure, reducing our debt by approximately $600 million, improving interest rates, and extending our maturities. We expect interest savings of approximately $35 million on an annualized basis.”
Garrison continues, “In the first quarter we earned a dividend on our Konecranes shares of $13.5 million, contributing $0.09 to our earnings per share. We also repurchased approximately 6.5 million shares of Terex stock through our previously announced programs. Including the full year impact of the Konecranes dividends and our share repurchases, we are increasing our full year adjusted EPS guidance to $0.80 to $0.95.”