Terex Hikes Income from Continuing Operations in Q3 as Sales Drop
Terex posted net sales of $1.056 billion in the third quarter compared to $1.255 billion in the third quarter of 2015, a 15.9-percent decrease. For the first nine months of 2016, the company’s net sales were $3.468 billion compared to $3.854.1 billion in the nine-month period last year, a 10-percent decline. Third quarter 2016 income from continuing operations was $33.3 million, or $0.31 per share, compared to income from continuing operations of $30.3 million or $0.28 per share in the third quarter of 2015.
“Our Aerial Work Platform and Materials Processing segments performed in line with expectations, while our Cranes segment performance was negatively impacted by more challenging markets than we anticipated and operational factors,” said John Garrison, Terex president and CEO. “The global capital equipment market remains challenging. AWP equipment sales continued to soften globally, particularly in North America. The market for mobile cranes weakened further than planned in the third quarter, with the primary driver being the retrenchment in the oil-and-gas sector in North America and legislative changes to subsidies in the German wind energy industry. We are taking actions to improve the Cranes business including the recently announced leadership changes. In our MP segment, we saw mixed results with increasing backlog for mobile crushing and screening and concrete equipment, while the market for material handling equipment remained weak due to low steel scrap prices.”
Garrison said the company is reviewing all aspects of its cost structure and is taking actions throughout the entire company to reduce costs.
“We further tightened the focus of our portfolio with the sale of our German Compact Construction business, and are progressing toward the planned completion of the MHPS sale in early 2017. We are also moving forward with the evaluation and simplification of our manufacturing footprint. During 2016 we successfully moved our mobile crane production from Waverly, Iowa, to Oklahoma City, Oklahoma. Our AWP segment is consolidating scissor manufacturing from three locations to two, and reducing its overall manufacturing footprint including its main campus in Redmond, Washington. AWP also closed its facility in Stockton, California, and recently announced plans to close its Waco, Texas, facility, consolidating into Oklahoma City.”
