Terex Reports Strong Q1

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Terex announced first quarter 2021 income from continuing operations of $39.7 million, or $0.56 per share, on net sales of $864.2 million.

By contrast, in the first quarter of 2020, the reported income from continuing operations was ($24.7) million, or ($0.35) per share, on net sales of $833.6 million.

"Our first quarter results reflect a strong start to the year, as the global markets recover from the pandemic,” said Terex chairman and CEO John L. Garrison, Jr. “I am proud of our team members as they continue to overcome the disruptions caused by Covid-19 and deliver improved performance."

Due to improved market conditions and operational execution, Terex increased its full-year outlook for sales to approximately $3.7 billion with an EPS range of $2.35 to $2.55, which includes a $0.30 charge associated with capital structure refinancing.

"Our portfolio of specialized machinery businesses will benefit from the global economic expansion," Garrison said. "We are committed to aggressively implementing our Execute, Innovate and Grow strategy to improve margins and grow Terex."

"AWP [Aerial Work Platforms] continues to improve its execution and operating margins, while meeting strong customer demand. MP [Materials Processing] had another excellent quarter with strong performance across its portfolio of businesses," Garrison said.

John Sheehan, SVP and CFO, said, "Through aggressive working capital management, we generated $40 million of free cash flow in the quarter. Our strong financial results and liquidity enabled us to prepay $196 million of term loans.  We will continue to use our liquidity to fund future growth opportunities, such as the recent announcement of our new Monterrey, Mexico AWP facility.

"The company refinanced a large portion of its capital structure, including its revolving credit facility and $600 million of bonds, to take advantage of the availability of favorable interest rates,” Sheehan said. “Our strong cash flow generation positioned us to obtain lower interest rates and extend debt maturities to the end of the decade."

Source: Terex