Terex Corporation, makers of cranes and Genie brand aerial work platforms (AWP), has released its first quarter 2018 earnings and reports that it has seen the momentum it slowly amassed during 2017 carry over into the new year.
The company reported 1Q income from continuing operations of $47.6 million, or $0.59 per share, on sales of $1.3 billion. The quarter, in which all three of the company’s equipment units saw sales increases, represents a nearly 360-degree turnaround from the same quarter one year ago. The first quarter of 2017 saw nearly the same net sales figure at $1 billion, but Terex posted a loss of $60 million.
Terex president and CEO John Garrison said in light of 1Q performance, Terex has adjusted its expectations for 2018 upward from an earnings per share guidance of between $2.35 and $2.65, to between $2.70 and $3.00.
Terex’s largest unit, AWP, saw sales increase 35 percent over 1Q 2017 while income from operations nearly tripled from $21.7 million to $60.1 million.
Crane sales were also up, rising 19 percent to $314 million. Crane income rose from a loss of $31.9 million in 1Q 2017 to a loss of $9.7 million in 1Q 2018. Garrison said the crane division “performed below our expectations in the quarter.”
The Material Processing equipment unit saw sales increase 22 percent to $303.3 million. Income on the MP side rose 52 percent to $38.9 million.
“Terex significantly improved its first quarter earnings per share compared to last year,” Garrison said in a statement accompanying the earnings report. “This strong financial performance reflects the improvements made to our operations and capital structure, and broad-based improvements in our global markets.”
“We continue to invest in our Execute to Win business system, which remains focused on enhancing our capabilities in Commercial Excellence, Lifecycle Solutions and Strategic Sourcing” added Garrison. “We are seeing benefits from Commercial Excellence in our performance, and expect to start to realize benefits from Strategic Sourcing in the second half of 2018.
“We remain committed to our Disciplined Capital Allocation Strategy. During the quarter we repurchased approximately five million shares of Terex stock for $205 million through our previously announced program.”
Garrison said in light of 1Q performance, Terex has adjusted its expectations for 2018 upward from an earnings per share guidance of between $2.35 and $2.65, to between $2.70 and $3.00.