Terex third quarter net sales of $1 billion, down almost 7 percent compared to the third quarter 2018
Terex Corporation has announced its third quarter 2019 income from continuing operations of $52.4 million, or $0.73 per share, on net sales of $1.0 billion. In the third quarter of 2018, the reported income from continuing operations was $69.2 million, or $0.92 per share, on net sales of $1.1 billion. Income from continuing operations, as adjusted, for the third quarter of 2019 was $58.9 million, or $0.82 per share. This compares to income from continuing operations, as adjusted, of $80.8 million or $1.08 per share in the third quarter of 2018. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.
“It has become clear that we are in a softening environment for industrial equipment,” stated John L. Garrison, Terex Chairman and CEO. “Demand in the major markets for Aerial Work Platforms (AWP) has declined, putting pressure on sales. We reduced AWP production in the third quarter and have made further reductions in the fourth quarter to align with the market, which is impacting margins. Materials Processing (MP) continued its strong performance in the quarter, however bookings and backlog levels are also pointing to weaker demand in their global markets.”
“I was pleased with our cash generation performance in the third quarter, as we achieved $104 million of free cash flow, representing a significant improvement compared to last year,” continued Mr. Garrison. “As we enter a more challenging macro environment for industrial equipment we are intensely focused on generating cash and maintaining a strong liquidity profile. We are well positioned, entering the fourth quarter with approximately $1.1 billion in available liquidity.”
Mr. Garrison concluded, “Based on our year-to-date performance, and changes to the outlook for the balance of 2019, we now expect full year EPS to be between $3.00 to $3.20, excluding restructuring, transformation investments, and other unusual items, on net sales of approximately $4.4 billion. As a result of our updated earnings outlook we are adjusting our full year free cash flow guidance to approximately $110 million. Looking ahead to 2020, we are operationally planning for sales to be approximately 10% lower than 2019 due to the softening macro environment for industrial equipment.”
