Terex Corp. posted $1,306.9 million in net sales in the second quarter compared to $1,253 million in the second quarter of 2018, a 4.3-percent increase. On a foreign currency-neutral basis, global sales jumped 8 percent year over year. The Terex AWP business segment reported net sales of $870 million, a 2-percent year over year increase, or 5 percent without the impact of foreign exchange rates.
Global Terex AWP backlog remained stable compared to the prior year at a healthy $746 million.
“Terex continued to grow in the second quarter,” said John Garrison, Terex chairman and CEO. “Global demand for our leading products and services remained generally stable at a healthy level, and we continued to meet the needs of our diverse customer base.”
“The overall global market for aerial work platforms remains healthy, and the North American utility market remains strong,” said Matt Fearon, Genie president, Terex AWP. “We expect the second half of 2019 to be similar to the second half of 2018 from an overall revenue and operating margin perspective. We continue to see strong growth in China through increased adoption of our advanced products. We are excited about our long-term growth prospects across the Asia-Pacific region. The recent launch of the Genie Lift Connect telematics solution is going well — customers are starting to see how the actionable information that the Genie Lift Connect program provides can help them increase their rental return on invested capital — or rROIC — on Genie equipment.
“The Terex Utilities team continues to execute well in a strong market and the new, state-of-the-art manufacturing facility that we are building in Watertown, S.D., remains on schedule.”
Garrison added that the company generated $168 million in free cash flow in the quarter. “This strong cash generation performance reflects our global team’s continuing focus on improving working capital efficiency,” Garrison said. “Furthermore, we expect to complete the sale of Demag Mobile Cranes in the coming days, realizing cash proceeds of approximately $125 million. Our improving financial results, with adjusted operating margins greater than 10 percent and adjusted EPS increasing 23 percent from the adjusted EPS we presented in our Q2 earnings release in July 2018, demonstrate the impact of executing our Focus, Simplify and Execute to Win strategy.
“Materials Processing (MP) continued its excellent performance, increasing sales on an FX-neutral basis by 13 percent and expanding its operating margin to 15.4 percent, representing a 220-basis-point improvement compared to last year. MP continues to grow across its broad global portfolio as customers convert to more efficient mobile material processing equipment.”
Terex lowered its expectations in sales growth and reduced production volume, now expecting full year EPS to be between $3.40 and $3.80, excluding restructuring, transformation investments, and other unusual items on net sales of approximately $4.6 billion.
“We reaffirm our full year free cash flow guidance of $165 million,” Garrison said.
Terex Corp. is headquartered in Westport, Conn.
