Terex Corp. posted $786.7 million in net sales in the fourth quarter of 2020 compared to $885 million for the fourth quarter of 2019, an 11.1-percent decline. For the full year, net sales totaled $3,076.4 million compared to $4,353.1 million in the fourth quarter of 2019, a 29.3-percent decline driven by the COVID-19 pandemic.
The AWP division posted $412.3 million in net sales in the fourth quarter of 2020, compared to $500.1 million in 2019’s fourth quarter, a 17.6-percent decline. For the full year, the drop was larger, showing improving conditions in the fourth quarter. Total net sales for 2020 were $1,782.9 compared to $2,726.6, a 34.6-percent plunge.
The Materials Processing division did better in the fourth quarter with $366.3 million in net sales compared to $378.5 million in the year-ago quarter, a 3.2-percent slide. For the full year, MP reported $1256.8 million compared to $1,602.6 million in 2019, a 21.6-percent decrease.
"Despite the challenges associated with managing through the pandemic, Terex delivered another quarter of improving operating performance," said John Garrison, chairman and CEO. "I would like to thank the Terex team members, dealers and suppliers throughout the world who have helped us safely maintain our operations and serve customers. Because of their contributions, Terex entered 2021 well positioned for growth. Terex will continue to deliver to our customers innovative products and solutions that yield superior productivity and return on investment."
Terex announced that its board of directors had reinstated its quarterly dividend for 2021. The board of directors has declared a quarterly dividend of $0.12 per share. The dividend is to be paid on March 19, 2021 to all stockholders of record as of the close of business on March 5, 2021.
John Sheehan, senior vice president and chief financial officer, said, "Through aggressive working capital management, we were able to generate over $140 million of free cash flow in 2020. Our disciplined liquidity management supported Terex entering 2021 in a very strong financial position, with $670 million of cash and over $1.1 billion of total available liquidity. We will use this liquidity to fund our growth opportunities. Our strong balance sheet and expected 2021 free cash flow generation of approximately $100 million allowed our board of directors to reinstate our quarterly dividend for 2021."
"Our entire organization is focused on delivering margin expansion in 2021 by realizing the benefits of our previously announced cost actions along with improved customer demand and production volumes,” added Garrison. “Renewed optimism and improved customer sentiment will drive customer demand for Terex's products and services. As a result, our expectations are that 2021 sales will be approximately $3.45 billion, and EPS will be approximately $1.95 to $2.35. We are confident that the company is well positioned with its operating strategy to drive improved execution, profitability, innovation and growth in 2021."
