Terex Corp. posted $765.6 million in third quarter 2020 revenue compared to $1,024.6 million for the third quarter of 2019, a 25.3-percent decrease. For the first nine months of 2020, revenue was $2,289.7 million compared to $3,468.1 million in the first nine months of 2020, a 34-percent plunge.
Third quarter 2020 income from continuing operations for the third quarter of 2020 was $22 million compared to $52.4 million for the third quarter of 2019.
"Our ability to execute and safely serve customers during this uncertain time drove sequentially stronger financial performance,” said Terex Corp. chairman and CEO John Garrison. “Our results demonstrate the progress we are making to align our cost structure with the current customer demand environment. We are strategically reducing spending and consolidating our company-wide footprint. These actions will enable us to maintain a competitive cost structure and position us for growth.
"Aerial Work Platforms (AWP) improved its operating performance delivering 3.0 percent operating margin reflecting the gradual sequential improvement in business activity. In addition, both Genie and Terex Utilities are seeing improved utilization levels of their equipment. Materials Processing (MP) continued its strong performance by delivering a 12.9-percent operating margin. MP is a diversified and consistently strong performer, even in these challenging times, with team members intently focused on profitable growth and serving its customers globally."
"Terex's third quarter results demonstrate our ability to offset challenging macroeconomic conditions by focusing on levers within our control," said John Sheehan, Terex Corp. senior vice president and chief financial officer. "We mitigated these headwinds with disciplined cost and working capital management to generate $54 million of positive free cash flow in the quarter. Our free cash flow performance reflects steady improvement in our businesses and strong execution."
Based on the company's current expectations of the markets, overall revenue expectation for 2020 remains unchanged from its outlook communicated in July. Also, consistent with historical cash flow patterns, the fourth quarter of 2020 is expected to be the company's strongest free cash flow quarter of the year, with net working capital continuing to be a source of cash.
"Finally, I am very proud with how our global team is managing through this challenging year,” added Garrison. “We are on the path to enter 2021 as an even stronger company."
Genie, Terex’s AWP division dropped 29.1 percent in net sales in the third quarter, from $628.2 million in the third quarter of 2019 to $445 million in the recently concluded quarter. Net sales in the materials processing segment dropped 18.7 percent in the third quarter, from $382.7 million in Q319 to $311.3 in the third quarter of 2020.
