Terex Corp. reported second-quarter sales of $690.5 million, down 47 percent from $1.307 billion in the same period in 2019. Loss from continuing operations was $3.2 million for the quarter.
The company’s AWP segment, which includes Genie and Terex Utilities, reported sales for the quarter of $414 million, down 52 percent from the same period in 2019, when sales were $870 million.
“Aerial Work Platforms (AWP) rapidly reduced Aerials production in response to lower customer bookings in North America and Europe but saw commercial demand return in China,” said chairmand and CEO John L. Garrison in a prepared statement.
“While the Covid-19 pandemic continues, global economic activity has gradually recovered but remains below pre-Covid-19 levels,” he said. “In response to lower customer demand, we are closely aligning our production plans.”
Positive free cash flow generation in the quarter of $71 million resulted in the company maintaining liquidity of approximately $1 billion, the company said, which provides Terex with the financial flexibility to successfully operate the business through the pandemic and be well positioned for future growth.
“Our financial performance reflects the efforts of the entire Terex team to swiftly reduce and remove costs from the business,” said John D. Sheehan, SVP/CFO in a statement. “Strong cost management and disciplined working capital management will continue to be a focus of all Terex team members.”
Based on the company’s current expectations of the markets for the remainder of 2020, Terex said it anticipates sales in the second half of 2020 to be similar to the first half of the year. Although the full severity and duration of the global coronavirus pandemic is unknown, it is anticipated that our operating results will continue to be impacted. Also, net working capital is expected to be a source of cash in the second half of 2020 as production will be closely aligned with customer demand.
“While the economic outlook remains uncertain, by producing in-line with customer demand and aggressively managing costs, Terex is confident it will successfully navigate these challenging times,” Garrison said.
Source: Terex Corp.
