Terex Net Sales Jump 50.4 Percent in Second Quarter
Terex Corp. posted $1,038.7 million in net sales in the second quarter of 2021 compared to $690.5 million for the second quarter of 2020, an increase of 50.4 percent. For the first six months of 2021, Terex reported $1,902.9 million in revenue compared to $1,524.1 million, not quite as dramatic, but nonetheless a 24.8-percent boost.
Terex posted second quarter income from continuing operations of $72.3 million, or $1.02 per share, compared to a net loss from continuing operations of $3.2 million, or a negative $0.05 per share.
“During the second quarter, our global team members’ relentless focus on safety and disciplined execution of our strategy led to robust bookings, revenue growth and margin expansion in both of our business segments,” said Terex chairman and CEO John Garrison. “Aerial Work Platforms execution resulted in strong operating margins. Materials Processing had another excellent quarter with outstanding performance across its portfolio of businesses. Given the strong first-half performance and significantly improved end markets, we have raised our full-year 2021 guidance, which takes into consideration current supply chain conditions. We increased our full-year sales outlook to approximately $3.9 billion with an EPS range of $2.85 to $3.05.”
“Aggressive working capital management drove $101 million of free cash flow in the quarter and $141 million of free cash flow year-to-date,” said Terex senior vice president and chief financial officer John Sheehan. “Our strong financial results and liquidity enabled us to prepay $83 million of term loans and continue to reduce leverage. In addition, we will continue to use our liquidity to fund future growth opportunities.”
In early June, the MP division completed a bolt-on acquisition with the purchase of MDS International, a manufacturer of heavy-duty aggregate and recycling trommels, apron feeders and conveyor systems. “The addition of MDS to our portfolio of businesses will bolster our growth and improve our product offerings,” said Kieran Hegarty, president of MP. “MDS is on an excellent growth trajectory, and its products complement our crushing and screening business.”
Garrison also noted that earlier this week, Genie named Simon Meester president of Genie.
“We are well-positioned as we enter the second half of 2021, with strong backlog and continued investment in the business, while maintaining cost discipline and generating sustained positive free cash flow,” added Garrison. “These actions drive our disciplined capital allocation strategy and position us to deliver strong shareholder returns.”
For more on Simon Meester, go to: https://www.rermag.com/aerial-lifting/article/21170922/terexgenie-corp-genie-names-simon-meester-president
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.