Terex had $1,723.1 million in net sales in the first quarter of 2013, a decrease of 5.3 percent from $1,819.4 million in the first quarter of 2012.
Income from operations was $68.4 million in the first quarter of 2013, an improvement of $4.6 million when compared to income from operations of $63.8 million in the first quarter of 2012. Excluding the impact of a write down of a charge related to the divestiture of the roadbuilding assets of approximately $3.4 million and a charge related to the Material Handling & Ports Solutions (MHPS) business of $2.7 million, income from operations as adjusted was $74.5 million in the first quarter of 2013. Excluding the write down of an acquisition related note receivable of $12.3 million, income from operations as adjusted was approximately $76.1 million in the first quarter of 2012.
“Our business performance was mixed in the first quarter,” commented Ron DeFeo, Terex chairman and CEO. “We are encouraged by the performance of our Aerial Work Platform (AWP) business, which continues to reflect the strong end-market dynamics of the rental channel, particularly in North America. Our Cranes and Materials Processing businesses also positively contributed to our results and performed generally as expected. However, we have seen significant global revenue shortfalls in our MHPS business, with particular weakness in Europe and India. Our Construction business is also reflecting the challenges of a less certain customer base in Europe. As a result, we are initiating additional actions in the second quarter to further adjust the cost structure of the MHPS and Construction organizations to better reflect the reduced demand for certain of their products. We anticipate that we will be incurring restructuring and related charges of approximately $30-$50 million in the MHPS segment in the second quarter, and expect to realize a similar amount in savings over the next 12 to 24 months.”
The company’s overall outlook for fiscal year 2013 financial performance is consistent with its prior view, although our segment guidance now reflects the new reporting structure. DeFeo added, “Terex remains focused on improving profit through organic means, integrating the businesses more thoroughly, and generating consistent free cash flow. We reiterate our annual outlook of earnings per share to be between $2.40 and $2.70 per share, excluding restructuring and other unusual items, on net sales of between $7.9 billion and $8.3 billion.”