Terex announced a first quarter 2016 loss from continuing operations of $74.2 million on net sales of $1.4 billion, compared to a first quarter loss of $2.1 million on net sales of $1.5 billion in the first quarter of 2015. On an as adjusted basis, the first quarter loss from continuing operations was $5.6 million, excluding after-tax charges of $59.7 million related to severance and restructuring actions as well as $8.9 million related to ongoing merger and acquisition activities.
Despite the losses, Terex management was optimistic.
“Our first quarter results were in line with our expectations,” said Terex president and CEO John Garrison. “Our Cranes and Material Handling & Port Solutions segments had a challenging quarter, impacted by soft markets. Our Aerial Work Platforms, Materials Processing and Construction segments executed well and delivered results that were consistent with or better than last year, on an adjusted basis.
“Our customers remain cautious in the current global environment. Overall, the markets are challenging, but there are pockets of opportunity. Most of our AWP North American rental customers are cautious about their capital requirements, managing time utilization of their fleet and rental rates. The impact from the oil and gas and resource sector declines continue to constrain global demand for many of our products, crane products in particular. We remain focused on what we can control and have initiated a broad-based restructuring program in the quarter to reduce our SG&A costs and align production capacity with demand.”
Garrison said the company expects net sales in 2016 to be about 10 percent less than 2015.
Aerial work platform net sales totaled $520.7 million, up slightly from $517.5 million in the first quarter of 2015. The Construction division was the most successful year over year, growing 16.6 percent from $122.2 million in Q115 to $142.5 in the recently concluded frame. Material Processing was essentially flat, declining from $181.1 million a year ago to $177.3 million this year. The Cranes division dropped 13 percent year over year from $353.3 million net sales to $307.3, while Material Handling & Port Solutions declined 7.7 percent from $344.3 million to $317.7 million.
