Terex Corp. posted a fourth quarter 2016 loss from continuing operations of $313.9 million on net sales of $1 billion, compared to income from continuing operations of $23.8 million on net sales of $1.2 billion in the fourth quarter of 2015. Excluding after-tax charges of $321.3 million, income from continuing operations for Q416 was $7.4 million.
For the full year 2016, Terex reported a loss from continuing operations of $193 million on net sales of $4.4 billion, compared to income from continuing operations of $128.4 million on net sales of $ billion for 2015. Income from continuing operations as adjusted for full year 2016 was $95.3 million.
“Our fourth quarter results were in line with our expectations and reflect the challenging global market conditions,” said John Garrison, Terex president and CEO. “We have taken significant steps to better position Terex for the future. We completed the sale of our MHPS business, initiated major restructuring actions within our Cranes segment, and dramatically improved our balance sheet. We continue to implement our strategy, to focus and simplify the company, and build capabilities in key commercial and operational areas.”
Looking ahead to 2017, Garrison added, “We expect our primary global markets to remain challenging. We anticipate lower fleet replacement demand from North American AWP rental customers. The global crane market remains challenging and we expect a further decline in 2017. We anticipate modest growth in our Materials Processing business. Combined with our cost reduction actions and capital structure improvements, we expect to deliver 2017 earnings per share of between $0.60 and $0.80, excluding restructuring, impact from our ownership interest in Konecranes, and other unusual items, on net sales of approximately $3.9 billion.”
Terex’s AWP division posted $1.978 billion in sales compared to $2.246 billion in 2015, an 11.9 percent drop, while fourth quarter sales slid $17.4 percent. Crane sales slid 19 percent in the fourth quarter and 18.6 percent for the full year. The Materials Processing group fared better, essentially flat for the fourth quarter and full year.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.