Demand for Terex AWP products is stronger so far in 2017 than the company expected

Terex’ Garrison Sees Positive Momentum in First Quarter Backlog

May 3, 2017

Terex Corp. announced a first quarter 2017 loss from continuing operations of $60.3 million on net sales of $1 billion.

Terex Corp. announced a first quarter 2017 loss from continuing operations of $60.3 million on net sales of $1 billion. In the first quarter of 2016, the reported loss from continuing operations was $22 million on net sales of $1.1 billion. Excluding after-tax charges of $65.8 million, income from continuing operations, as adjusted, for the first quarter of 2017, was $5.5 million. This compared to the first quarter of 2016, income from continuing operations, as adjusted of $5 million.

“We are encouraged by our start to 2017,” said John Garrison, Terex president and CEO. “Our Material Processing segment had an excellent first quarter, growing sales and operating margin. Our Cranes segment results were consistent with our expectation that volumes would be down in the first half of 2017. In Aerial Work Platforms sales were down as expected, and operating margins compressed on lower sales and strength of the U.S. dollar.

“Looking forward we see positive momentum in our backlog, which grew year over year for the first time in eight quarters. Overall backlog grew 10 percent, rising in each of our segments. In particular, the North American market for AWP products is stronger than we anticipated, with positive customer segment tempering the impact of the replacement cycle. Year over year, AWP backlog grew 21 percent and bookings rose 38 percent. In addition, MP backlog grew 29 percent.”

Garrison added that the company completed the sale of the MHPS division, closed the sale of its loader backhoe business based in Coventry, England, and announced the sale of its India loader backhoe business. Terex’s Cranes restructuring program is progressing, Garrison said, with the closing of the company’s Jinan, China, facility.

“We significantly improved our capital structure, reducing our debt by approximately $600 million, improving interest rates, and extending our maturities,” Garrison added. “We expect interest savings of approximately $35 million on an annualized basis.”

Terex is based in Westport, Conn.