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Terex Back on Upswing, Increases Revenue 3.7 Percent in First Quarter

April 30, 2021
Terex Corp. posted $864.2 million in net sales in the first quarter of 2021, compared to $833.6 million in the first quarter in 2020, an increase of 3.7 percent.

Terex Corp. posted $864.2 million in net sales in the first quarter of 2021, compared to $833.6 million in the first quarter in 2020, an increase of 3.7 percent. First quarter 2021 income from continuing operations was $39.7 million or $0.56 per share, compared to a loss of $24.7 million in the first quarter of 2020, with a loss of $0.35 per share.

Because of improved market conditions and operational execution, Terex increased its full-year outlook for sales to approximately $3.7 billion with an EPS range of $2.35 to $2.55, which includes a $0.30 charge associated with capital structure refinancing.

"Our first quarter results reflect a strong start to the year, as the global markets recover from the pandemic,” said Terex chairman and CEO John Garrison. “I am proud of our team members as they continue to overcome the disruptions caused by COVID-19 and deliver improved performance. Our portfolio of specialized machinery businesses will benefit from the global economic expansion. We are committed to aggressively implementing our Execute, Innovate and Grow strategy to improve margins and grow Terex. AWP continues to improve its execution and operating margins, while meeting strong customer demand. MP had another excellent quarter with strong performance across its portfolio of businesses."

"Through aggressive working capital management, we generated $40 million of free cash flow in the quarter,” said John Sheehan, senior vice president and chief financial officer. “Our strong financial results and liquidity enabled us to prepay $196 million of term loans. We will continue to use our liquidity to fund future growth opportunities, such as the recent announcement of our new Monterrey, Mexico, AWP facility. The company refinanced a large portion of its capital structure, including  its revolving credit facility and $600 million of bonds, to take advantage of the availability of favorable interest rates. Our strong cash flow generation positioned us to obtain lower interest rates and extend debt maturities to the end of the decade."

The Materials Processing division was the star of the quarter on a year-over-year basis with $378.2 million in revenue compared to $315.6 in the first quarter of 2020, a 19.8-percent year-over-year increase. The AWP division posted $476.7 million in revenue, compared to $511.7 million in Q120, a 6.8-percent decrease.