Terex Corp. Posts 29.8-Percent Net Sales Jump in Third Quarter
Terex Corp. posted $993.8 million in net sales in the third quarter of 2021 compared to $765.6 million in the heavily COVID-influenced third quarter of 2020, a 29.8-percent increase. For the first nine months of 2021, Terex reported $2,896.7 million in net sales compared to $2,289.7 million in the first nine months of 2020, a 26.5-percent hike.
“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 CEO John Garrison. “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.
“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.”
Garrison added that the company’s AWP division improved its operating margins despite input cost headwinds. “MP had another excellent quarter as it continues its strong execution across its portfolio of business,” he added.
Terex is updating its full-year 2021 EPS outlook to a range of $2.75 to $2.85 per share on net sales of $3.85 billion reflecting the current environment.
“Aggressive working capital management drove $43 million of free cash flow in the quarter and $183 million of free cash flow year-to-date,” said John Sheehan, senior vice president and chief financial officer. “Our strong financial results and liquidity enabled us to continue to reduce leverage by preparing 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.”
“We will close out full year 2021 with strong backlog, continued cost discipline, and positive free cash flow,” added Garrison. “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.”
Terex Corp. is based in Westport, Conn.
