NORWALK, Conn., Oct. 28, 2021
/PRNewswire/ -- Terex Corporation (NYSE: TEX) announced third
quarter 2021 income from continuing operations of $47.5 million, or $0.67 per share, on net sales of $993.8 million. In the third quarter of 2020, the
reported income from continuing operations was $22.0 million, or $0.31 per share, on net sales of $765.6 million.
"End-market demand remains exceptionally strong demonstrated by
significant year-over-year growth in orders, backlog and a robust
book-to-bill ratio," said Terex Chairman and Chief Executive
Officer John L. Garrison, Jr. "Our
ability to meet this high level of demand is constrained by supply
chain, labor, freight and logistics challenges. We are driving our
suppliers on availability and cost to reduce the impact on our
customers and distributors. I am pleased how our team members
have worked tirelessly to help overcome these external
headwinds."
Garrison continued, "Our commercial excellence initiatives are
demonstrating results, as pricing actions continue to partially
offset accelerating cost inflation. Price increases are being
clearly communicated with our customers and distributors and we
will be implementing further price increases."
"AWP improved its operating margins despite input cost
headwinds. MP had another excellent quarter as it continues its
strong execution across its portfolio of businesses," added
Garrison.
We are updating our full-year 2021 EPS outlook to $2.75 to $2.85 on
net sales of $3.85 billion reflecting
the current environment.
John Sheehan, Senior Vice
President and Chief Financial Officer, said, "Aggressive working
capital management drove $43 million
of free cash flow in the quarter and $183 million of free cash
flow year-to-date. Our strong financial results and liquidity
enabled us to continue to reduce leverage by prepaying an
additional $150 million of term loans
in October. Debt prepayments of $429
million year-to-date have reduced leverage, strengthened our
balance sheet, and positioned the Company for growth."
Mr. Garrison concluded, "We will close out full year 2021 with
strong backlog, continued cost discipline, and positive free cash
flow. We remain confident in our team's ability to manage through
current market conditions and emerge with stronger customer and
supplier relationships. We will continue our investments to enable
longer-term growth."
Non-GAAP Measures and Other Items
Results of operations reflect continuing operations. All
per share amounts are on a fully diluted basis. A
comprehensive review of the quarterly financial performance is
contained in the presentation that will accompany the Company's
earnings conference call.
In this press release, Terex refers to various GAAP (U.S.
generally accepted accounting principles) and non-GAAP financial
measures. These non-GAAP measures may not be comparable to
similarly titled measures being disclosed by other companies.
Terex believes that this non-GAAP information is useful to
understanding its operating results and the ongoing performance of
its underlying businesses.
The Glossary at the end of this press release contains further
details about this subject.
Conference Call
The Company has scheduled a conference call to review the
financial results on Friday, October 29, 2021 beginning at
8:30 a.m. ET. John Garrison, Chairman and CEO, will host the
call. A simultaneous webcast of this call can be accessed at
https://investors.terex.com. Participants are encouraged
to access the call 10 minutes prior to the starting time. The call
will also be archived in the Event Archive at
https://investors.terex.com.
Forward-Looking Statements
Certain information in this press release includes
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of
1995) regarding future events or our future financial performance
that involve certain contingencies and uncertainties, including
those discussed in our Annual Report on Form 10-K for the year
ending December 31, 2020, and
subsequent reports we file with the U.S. Securities and Exchange
Commission from time to time, in the sections entitled
"Management's Discussion and Analysis of Financial Condition and
Results of Operations – Contingencies and Uncertainties." In
addition, when included in this press release or in documents
incorporated herein by reference, the words "may," "expects,"
"should," "intends," "anticipates," "believes," "plans,"
"projects," "estimates," "will" and the negatives thereof and
analogous or similar expressions are intended to identify
forward-looking statements. However, the absence of these
words does not mean that the statement is not
forward-looking. We have based these forward-looking
statements on current expectations and projections about future
events. These statements are not guarantees of future
performance. Such statements are inherently subject to a
variety of risks and uncertainties that could cause actual results
to differ materially from those reflected in such forward-looking
statements. Such risks and uncertainties, many of which are
beyond our control, include, among others:
- our business has been, and could be further, adversely
impacted by global health pandemics such as the outbreak of a new
strain of coronavirus ("COVID-19");
- our business is highly competitive and is affected by our
cost structure, pricing, product initiatives and other actions
taken by competitors;
- we are dependent upon third-party suppliers, making us
vulnerable to supply shortages and price increases;
- our operations are subject to a number of potential risks
that arise from operating a multinational business, including
compliance with changing regulatory environments and political
instability;
- a material disruption to one of our significant
facilities;
- our business is sensitive to government spending;
- our business is affected by the cyclical nature of markets
we serve;
- our financial results could be adversely impacted by the
United Kingdom's ("U.K.")
departure from the European Union ("E.U.");
- changes affecting the availability of the London Interbank
Offered Rate ("LIBOR") may have consequences on us that cannot yet
reasonably be predicted;
- our need to comply with restrictive covenants contained in
our debt agreements;
- our ability to generate sufficient cash flow to service our
debt obligations and operate our business;
- our ability to access the capital markets to raise funds and
provide liquidity;
- the financial condition of suppliers and customers, and
their continued access to capital;
- exposure from providing financing and credit support for
some of our customers;
- we may experience losses in excess of recorded
reserves;
- our business is global and subject to changes in exchange
rates between currencies, commodity price changes, regional
economic conditions and trade relations;
- our retention of key management personnel;
- possible work stoppages and other labor matters;
- changes in import/export regulatory regimes, imposition of
tariffs, escalation of global trade conflicts and unfairly traded
imports, particularly from China,
could continue to negatively impact our business;
- compliance with changing laws and regulations, particularly
environmental and tax laws and regulations;
- litigation, product liability claims and other
liabilities;
- our compliance with the United
States ("U.S.") Foreign Corrupt Practices Act and similar
worldwide anti-corruption laws;
- increased regulatory focus on privacy and data security
issues and expanding laws;
- our ability to comply with an injunction and related
obligations imposed by the U.S. Securities and Exchange Commission
("SEC");
- our ability to successfully implement our strategy:
- disruption or breach in our information technology systems
and storage of sensitive data; and
- other factors.
Actual events or our actual future results may differ
materially from any forward-looking statement due to these and
other risks, uncertainties and material factors. The
forward-looking statements contained herein speak only as of the
date of this press release and the forward-looking statements
contained in documents incorporated herein by reference speak only
as of the date of the respective documents. We expressly
disclaim any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement contained or
incorporated by reference in this press release to reflect any
change in our expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.
About Terex
Terex Corporation is a global manufacturer of aerial work
platforms and materials processing machinery. The Company designs,
builds, and supports products used in construction, maintenance,
manufacturing, energy, minerals and materials management
applications. The Company's products are manufactured in North and
South America, Europe, Australia, and Asia and sold worldwide. The Company engages
with customers through all stages of the product life cycle, from
initial specification and financing to parts and service support.
Terex uses its website (www.terex.com) to make information
available to its investors.
Contact Information
Terex
Corporation
Randy
Wilson
Director, Investor Relations &
Corporate Treasury
203-221-5415
TEREX CORPORATION
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(in millions, except
per share data)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net sales
|
$
|
993.8
|
|
|
$
|
765.6
|
|
|
$
|
2,896.7
|
|
|
$
|
2,289.7
|
|
Cost of goods
sold
|
|
(815.3)
|
|
|
|
(619.3)
|
|
|
|
(2,311.2)
|
|
|
|
(1,899.6)
|
|
Gross
profit
|
|
178.5
|
|
|
|
146.3
|
|
|
|
585.5
|
|
|
|
390.1
|
|
Selling, general and
administrative expenses
|
|
(104.3)
|
|
|
|
(109.8)
|
|
|
|
(327.3)
|
|
|
|
(353.3)
|
|
Income (loss) from
operations
|
|
74.2
|
|
|
|
36.5
|
|
|
|
258.2
|
|
|
|
36.8
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
0.6
|
|
|
|
0.8
|
|
|
|
2.9
|
|
|
|
2.5
|
|
Interest
expense
|
|
(12.3)
|
|
|
|
(15.8)
|
|
|
|
(40.6)
|
|
|
|
(50.0)
|
|
Loss on early
extinguishment of debt
|
|
—
|
|
|
|
—
|
|
|
|
(27.7)
|
|
|
|
—
|
|
Other income (expense)
– net
|
|
(1.1)
|
|
|
|
(0.6)
|
|
|
|
2.7
|
|
|
|
(0.1)
|
|
Income (loss) from
continuing operations before income taxes
|
|
61.4
|
|
|
|
20.9
|
|
|
|
195.5
|
|
|
|
(10.8)
|
|
(Provision for)
benefit from income taxes
|
|
(13.9)
|
|
|
|
1.1
|
|
|
|
(36.0)
|
|
|
|
4.9
|
|
Income (loss) from
continuing operations
|
|
47.5
|
|
|
|
22.0
|
|
|
|
159.5
|
|
|
|
(5.9)
|
|
Income (loss) from
discontinued operations – net of tax
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
(1.3)
|
|
Gain (loss) on
disposition of discontinued operations- net of tax
|
|
0.6
|
|
|
|
(16.1)
|
|
|
|
2.6
|
|
|
|
(21.1)
|
|
Net income
(loss)
|
$
|
48.1
|
|
|
$
|
5.8
|
|
|
$
|
162.1
|
|
|
$
|
(28.3)
|
|
Basic earnings (loss)
per Share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
0.68
|
|
|
$
|
0.31
|
|
|
$
|
2.29
|
|
|
$
|
(0.09)
|
|
Income (loss) from
discontinued operations – net of tax
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.02)
|
|
Gain (loss) on
disposition of discontinued operations – net of tax
|
|
0.01
|
|
|
|
(0.23)
|
|
|
|
0.04
|
|
|
|
(0.30)
|
|
Net income
(loss)
|
$
|
0.69
|
|
|
$
|
0.08
|
|
|
$
|
2.33
|
|
|
$
|
(0.41)
|
|
Diluted earnings
(loss) per Share:
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$
|
0.67
|
|
|
$
|
0.31
|
|
|
$
|
2.25
|
|
|
$
|
(0.09)
|
|
Income (loss) from
discontinued operations – net of tax
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.02)
|
|
Gain (loss) on
disposition of discontinued operations – net of tax
|
|
0.01
|
|
|
|
(0.23)
|
|
|
|
0.04
|
|
|
|
(0.30)
|
|
Net income
(loss)
|
$
|
0.68
|
|
|
$
|
0.08
|
|
|
$
|
2.29
|
|
|
$
|
(0.41)
|
|
Weighted average
number of shares outstanding in per share calculation
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
69.8
|
|
|
|
69.3
|
|
|
|
69.7
|
|
|
|
69.7
|
|
Diluted
|
|
70.9
|
|
|
|
69.5
|
|
|
|
70.8
|
|
|
|
69.7
|
|
TEREX CORPORATION
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEET
(unaudited)
(in millions,
except par value)
|
|
|
September 30,
2021
|
|
December 31,
2020
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
553.2
|
|
$
|
665.0
|
Other current
assets
|
|
1,452.6
|
|
|
1,213.6
|
Total current
assets
|
|
2,005.8
|
|
|
1,878.6
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment – net
|
|
412.6
|
|
|
406.6
|
Other non-current
assets
|
|
649.5
|
|
|
746.6
|
Total non-current
assets
|
|
1,062.1
|
|
|
1,153.2
|
Total
assets
|
$
|
3,067.9
|
|
$
|
3,031.8
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
5.7
|
|
$
|
7.6
|
Other current
liabilities
|
|
934.1
|
|
|
715.7
|
Total current
liabilities
|
|
939.8
|
|
|
723.3
|
Non-current
liabilities
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
887.7
|
|
|
1,166.2
|
Other non-current
liabilities
|
|
189.7
|
|
|
220.8
|
Total non-current
liabilities
|
|
1,077.4
|
|
|
1,387.0
|
Total
liabilities
|
|
2,017.2
|
|
|
2,110.3
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
1,050.7
|
|
|
921.5
|
Total liabilities and
stockholders' equity
|
$
|
3,067.9
|
|
$
|
3,031.8
|
|
|
|
|
|
|
TEREX CORPORATION
AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in
millions)
|
|
|
Nine Months
Ended
September
30,
|
|
|
|
2021
|
|
2020
|
|
Operating
Activities
|
|
|
|
|
Net income
(loss)
|
$
|
162.1
|
|
$
|
(28.3)
|
|
Depreciation and
amortization
|
|
37.9
|
|
|
36.3
|
|
Changes in operating
assets and liabilities and non-cash charges
|
|
124.1
|
|
|
80.9
|
|
Net cash provided by
(used in) operating activities
|
|
324.1
|
|
|
88.9
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
(31.7)
|
|
|
(53.9)
|
|
Other investing
activities, net
|
|
(41.7)
|
|
|
13.9
|
|
Net cash provided by
(used in) investing activities
|
|
(73.4)
|
|
|
(40.0)
|
|
Financing
Activities
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
(348.7)
|
|
|
(80.8)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(13.9)
|
|
|
4.4
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(111.9)
|
|
|
(27.5)
|
|
Cash and cash
equivalents at beginning of period
|
|
670.1
|
|
|
540.1
|
|
Cash and cash
equivalents at end of period
|
$
|
558.2
|
|
$
|
512.6
|
|
|
|
|
|
|
|
|
TEREX CORPORATION
AND SUBSIDIARIES
SEGMENT RESULTS
DISCLOSURE
(unaudited)
(in
millions)
|
|
|
Q3
|
|
Year to
Date
|
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
%
of
|
|
|
%
of
|
|
|
|
%
of
|
|
|
%
of
|
Net
Sales
|
Net
Sales
|
|
Net
Sales
|
Net
Sales
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
993.8
|
|
$
|
765.6
|
|
|
$
|
2,896.7
|
|
|
$
|
2,289.7
|
|
|
Income (loss) from
operations
|
$
|
74.2
|
7.5%
|
$
|
36.5
|
4.8%
|
|
$
|
258.2
|
|
8.9%
|
$
|
36.8
|
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AWP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
572.5
|
|
$
|
445.0
|
|
|
$
|
1,644.4
|
|
|
$
|
1,370.6
|
|
|
Income (loss) from
operations
|
$
|
34.9
|
6.1%
|
$
|
13.3
|
3.0%
|
|
$
|
126.7
|
|
7.7%
|
$
|
2.4
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
418.7
|
|
$
|
311.3
|
|
|
$
|
1,237.7
|
|
|
$
|
890.5
|
|
|
Income (loss) from
operations
|
$
|
57.1
|
13.6%
|
$
|
40.3
|
12.9%
|
|
$
|
178.3
|
|
14.4%
|
$
|
88.7
|
|
10.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corp and Other /
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2.6
|
|
$
|
9.3
|
|
|
$
|
14.6
|
|
|
$
|
28.6
|
|
|
Loss from
operations
|
$
|
(17.8)
|
*
|
$
|
(17.1)
|
*
|
|
$
|
(46.8)
|
|
*
|
$
|
(54.3)
|
|
*
|
* Not a meaningful
percentage
|
|
|
|
|
|
|
|
GLOSSARY
In an effort to provide investors with additional information
regarding the Company's results, Terex refers to various GAAP (U.S.
generally accepted accounting principles) and non-GAAP financial
measures which management believes provides useful information to
investors. These non-GAAP measures may not be comparable to
similarly titled measures being disclosed by other companies.
In addition, the Company believes that non-GAAP financial measures
should be considered in addition to, and not in lieu of, GAAP
financial measures. Terex believes that this non-GAAP
information is useful to understanding its operating results and
the ongoing performance of its underlying businesses.
Management of Terex uses both GAAP and non-GAAP financial measures
to establish internal budgets and targets and to evaluate the
Company's financial performance against such budgets and
targets.
The amounts described below are unaudited, are reported in
millions of U.S. dollars (except share data and percentages), and
are as of or for the period ended September 30, 2021, unless
otherwise indicated.
2021 Outlook
The Company's 2021 outlook for earnings per share is a non-GAAP
financial measure because it excludes the impact of potential
future acquisitions, divestitures, restructuring, and other unusual
items. The Company is not able to reconcile this forward-looking
non-GAAP financial measure to its most directly comparable
forward-looking GAAP financial measures without unreasonable
efforts because the Company is unable to predict with a reasonable
degree of certainty the exact timing and impact of such items. The
unavailable information could have a significant impact on the
Company's full-year 2021 GAAP financial results. This forward
looking information provides guidance to investors about the
Company's EPS expectations excluding unusual items that the Company
does not believe is reflective of its ongoing operations.
Free Cash Flow
The Company calculates a non-GAAP measure of free cash
flow. The Company defines free cash flow as Net cash provided
by (used in) operating activities, plus (minus) increases
(decreases) in Terex Financial Services finance receivables
consisting of sales-type leases and commercial loans ("TFS
Assets"), less Capital expenditures, net of proceeds from sale of
capital assets. The Company believes that this measure of
free cash flow provides management and investors further useful
information on cash generation or use in our primary
operations. The following table reconciles Net cash provided
by (used in) operating activities to free cash flow (in
millions):
|
|
Three Months
Ended
September 30,
2021
|
|
Nine Months
Ended
September 30,
2021
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
54.9
|
|
|
$
|
324.1
|
|
|
Increase (decrease)
in TFS assets
|
|
(4.6)
|
|
|
(110.2)
|
|
|
Capital expenditures,
net of proceeds from sale of capital assets
|
|
(7.8)
|
|
|
(30.5)
|
|
|
Free cash
flow
|
|
$
|
42.5
|
|
|
$
|
183.4
|
|
|
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SOURCE Terex Corporation