Terex Corp. posted first quarter 2019 net sales of $1,136.6 million compared to $1,116.6 million in the first quarter of 2018, a 1.8-percent increase. Income from operations was $99.7 million compared to $94.3 million a year ago, a 5.7-percent hike.
The AWP segment, marketed as Genie, recorded $727.9 million, a slight drop from $737.5 million in the year ago quarter. The Materials Processing division posted $346.2 million in net sales compared to $315.9 million a year ago, a 9.6-percent leap.
“Overall, we had a strong first quarter,” said John Garrison, Terex chairman and CEO. “Our improving financial results, with adjusted operating margins greater than 9 percent and adjusted EPS increasing over 50 percent from what we presented in our Q1 earningsrelease in May 2018, clearly demonstrate the impact of executing our Focus, Simplify and Execute to Win strategy.
“Building on an excellent 2018, Materials Processing increased sales and expanded operating margin again in the first quarter. MP’s global markets remained strong and backlog continued to grow, increasing 17 percent on an FX-neutral basis.
“Aerial Work Platforms started slower than last year but gained momentum throughout the quarter. Revenue and operating margin were impacted by severe weather across the United States including a week-long closure of AWP’s principal manufacturing and distribution facilities in Washington state. Additionally, the strength of the U.S. dollar, particularly against the Euro, represented a headwind in the quarter.”
Garrison added that the AWP division is well-positioned heading into the second quarter with $1.1 billion worth of backlog.
“The global markets for aerial work platforms remain generally stable at healthy levels, and the North American utility market remains strong,” said Matt Fearon, Genie president, Terex AWP. “The Genie team is carrying great momentum going into the second quarter, thanks to the excitement around the innovations we announced at The ARA Show and Bauma. We launched the Genie Lift Connect telematics solution that will convert data into actionable information for our customers, helping them to increase their ROI on Genie equipment. We also showcased a complete line of our new Genie Xtra Capacity booms from 40 feet to 135 feet, showing our customers that Genie is leading the industry with product innovations.
“The Terex Utilities team continues to execute well in a stable market, and we are already seeing cross-selling benefits now that Utilities is part of Terex AWP. We are better leveraging our network of service centers across the country to improve service for our Terex AWP customers.”
Garrison added that Terex is continuing to invest in its Execute to Win business system, remaining focused on enhancing the company’s capabilities in “commercial excellence, lifecycle solutions and strategic sourcing.”
In regard to Terex’s sale of its Demag Mobile Cranes business, Garrison added: “The previously announced agreement to sell the Demag Mobile Cranes business remains on track to close mid-year, subject to government regulatory approvals and other customary closing conditions. We implemented our new two-segment structure and are moving forward with plans to further simplify our corporate organization and reduce general and administrative expenses.”
“We are seeing benefits from each of these areas in our financial performance,” Garrison noted. “As a result of our first quarter performance, we now expect full year EPS to be in the upper half of our previously announced range of $3.60 to $4.20, excluding restructuring, transformation investments and other unusual items, on net sales of approximately $4.7 billion.”
Terex is headquartered in Westport, Conn. The Genie AWP division is based in Redmond, Wash.
