Terex income and sales up in 2012 despite Q4 declines
| February 20, 2013
Terex announced today income of $103.6 million on sales of $7.3 billion in 2012. Both marks are increases over 2011. Income was up 60 percent over the $38.6 million made in 2011, while sales were up 12 percent over 2011’s $6.5 billion.
Fourth quarter 2012 net sales were down 13.3 percent from same period in 2011 to $1.69 billion. Fourth quarter income from operations was $27.9 million, a decrease of $3.2 million from fourth quarter 2011 operations.
Net sales for the Terex Construction segment for the fourth quarter of 2012 were reported at $142.6 million, a decrease of 34.9 percent from the same period in 2011. Terex attributes the decrease to weak order intake earlier in 2012 for various types of construction equipment, particularly in material handlers.
Terex’s compact construction equipment in Western Europe and rigid trucks in developing markets also experienced decreased sales when compared with the same period in 2011.
Terex Chairman and CEO Ron DeFeo said he anticipates 2013 earnings per share to be between $2.40 and $2.70 on net sales of between $7.9 billion and $8.3 billion; this excludes restructuring and unusual items. DeFeo also expects Terex to generate more than $500 million in free cash flow during 2013 and hopes to see further reduction in company debt.
Additionally, Terex has set an earnings-per-share goal of $5 from $10 billion in net sales and with a 15-percent return on invested capital by 2015.
Net sales for the Terex Aerial Work Platforms (AWP) segment for the fourth quarter of 2012 increased $22.0 million, or 5 percent, to $459.4 million versus the fourth quarter of 2011.
AWP income from operations in the fourth quarter of 2012 was $42.6 million, or 9.3 percent of net sales, compared to income from operations of $26.2 million, or 6 percent of net sales, during the fourth quarter of 2011. Terex reports that income from operations was negatively impacted by increased inventory charges which was more than offset by benefits from improved price realization and customer mix.
Net sales for the Terex Cranes segment for the fourth quarter of 2012 decreased $40.4 million, or 9.3 percent, to $394.9 million versus the fourth quarter of 2011. Net sales were negatively impacted by reduced demand in Western Europe, which was partially offset by strong demand in North America, Australia and the Middle East. Sales in the Middle East more than doubled from the same period last year, particularly in Turkey and Saudi Arabia.
Net sales for the Terex Material Handling & Port Solutions (MHPS) segment for the fourth quarter of 2012 decreased $80.3 million, or 15.4 PERCENT, to $439.6 million versus the fourth quarter of 2011.
Net sales for the Terex Materials Processing (MP) segment for the fourth quarter of 2012 decreased $18.7 million, or 10.9 percent, to $152.1 million versus the fourth quarter of 2011.