Third quarter 2017 income from continuing operations for Terex Corp. was $56.6 million compared to income from continuing operations of $33.3 million in the third quarter of 2016, a 70-percent leap. Net sales was $1,111.2 million in the third quarter, compared to $1,056.4 in the year-ago quarter, a 5.2-percent increase.
“Our third quarter financial results demonstrate the accelerating momentum across Terex,” said John Garrison, Terex president and CEO. “All three segments increased sales, improved operating margin and grew backlog. Aerial work platforms grew in North America and Europe, and expanded its operating margin. Cranes continued to be profitable in the third quarter, realizing benefits from its restructuring program. Materials processing continued its excellent performance, growing sales and operating margin for the fourth consecutive quarter.
“Having completed the first element of our strategy – forcusing the portfolio on our three core segments, our strategy deployment efforts are concentrated on simplifying the company and implementing our Execute to Win business system. Footprint consolidation progress in the quarter included completing the sale of manufacturing locations in Jinan, China, and Bierbach, Germany. A fundamental component of Execute to Win is improving our commercial capabilities. In addition to enhancing our performance management tools and increasing process discipline in sales pipeline and account management we made key additions to our commercial leadership team.”
For the first nine months of the year, net sales totaled $3,299.8 million, compared to $3,468.4 million for the first nine months of 2016, a 4.9-percent drop.
Aerial work platform net sales were $556.7 million in the third quarter, compared to $484.4 million in Q316, a 14.9 percent leap. Year to date, net sales in the AWP segment were $1,622.1 million compared to $1,598.8 million in the first nine months of 2016, a 1.4-percent increase.
The cranes division showed a similar third quarter improvement. Net sales in the cranes division were $301.9 million for the third quarter, compared to $282.8 million in the year-ago frame, a 6.8-percent leap. For the first nine months of the year, crane revenue was $869.6 million compared to $947.5 million in the same period last year, an 8.2-percent slide.
In the Materials Processing segment, third quarter sales were $259.9 million compared to $228.2 million in last year’s third quarter, a 13.9-percent jump. For the first nine months, MP posted $789.5 million in sales compared to $708.2 million in 2016, an 11.5-percent jump.
“We continue to follow our disciplined capital allocation strategy,” added Garrison. “We monetized our remaining holdings of Konecranes shares for proceeds of $221 million, bringing the total consideration received by Terex for the disposition of MHPS to approximately $1.6 million,” added Garrison. “This demonstrates the significant value to Terex shareholders that was created by the sale of our MHPS segment. In addition, we repurchased 6.4 million Terex shares for $254 million in the third quarter, bringing the total to 22.3 million shares repurchased for $770 million for the first nine months of the year.
“Considering our year-to-date results, our current view of market dynamics, operational expectations for the fourth quarter, and our capital market actions, we are increasing our full year adjusted EPS guidance to $1.20 to $1.30.”
Terex is based in Westport, Conn.
