DOW JONES NEWSWIRES
Terex Corp.'s (TEX) second-quarter loss narrowed significantly, and it swung to a profit on a continuing-operations basis on strong sales.
But shares were down 6.3% at $25.50 after hours because the bottom line was still weaker than expected even after adjustments for one-time items. Through the close, the stock has declined 12% so far this year.
The company, which makes specialized equipment such as tower cranes and rock crushers, also lowered its full-year earnings outlook, although it hoisted its revenue projection slightly higher. Wednesday, it predicted adjusted earnings of 40 cents to 60 cents a share, compared with its February target for 60 cents 75 cents a share. It now predicts revenue will be $5.4 billion to $5.6 billion, after it forecast $5.2 billion to $5.5 billion in May.
The company has been posting frequent quarterly losses, as raw materials costs and lingering weakness in construction and industrial markets weighed on the bottom line.
Wednesday, the company posted a loss of $500,000, or less than a penny a share, compared with a year-earlier loss of $40.3 million, or 37 cents a share. Its bottom line from continuing operations swung to a penny profit from a 12-cent loss a year earlier. It said that excluding restructuring and acquisition charges and a gain from selling Bucyrus International stock, earnings from continuing operations would have been 10 cents a share.
Revenue increased 38% to $1.49 billion.
Analysts surveyed by Thomson Reuters predicted earnings of 18 cents a share on revenue of $1.36 billion.
Gross margin inched up to 14.4% from 14.3%.
Revenue in the aerial work platforms business doubled. Sales in the cranes unit rose 3.3%, while revenue increased 29% for construction.
As of March 31, total backlog was $1.76 billion, 57% higher than a year earlier but down slightly from the first quarter's $1.79 billion.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; firstname.lastname@example.org