Terex fourth quarter and 2108 highlights
- Q4 sales up 16%
- Q4 operating profit up 14%, as adjusted up 30%
- Q4 EPS $(0.42), as adjusted Q4 EPS $0.51 – up 55%
- FY sales up 18%, Backlog up 19%
- FY operating profit up 63%, as adjusted up 52%
- FY EPS $1.45, as adjusted FY EPS $2.71 – up 101%
- 2019 Guidance Highlights: Sales of ~$4.7 billion, EPS improves to $3.60-$4.20
Bouyed by heavy demand for aerial work platforms and cranes, Terex Corporation reports 2018 full-year earnings from continuing operations up by 18 percent, hitting $60 million.
For 2018, Terex reported income from continuing operations of $111.3 million, or $1.45 per share. Sales increased 18 percent to $5.1 billion.
That’s compared with income from continuing operations of $60 million, or $0.63 per share, on net sales of $4.4 billion for the full year 2018 compared to 2017.
It’s no surprise. Industry executives have been calling 2018 one of their best years ever.
Income from continuing operations, as adjusted, for the full year 2018 was $208.6 million, or $2.71 per share, compared with $128.4 million, or $1.35 per share for the full year 2017.
The company also reported a fourth a quarter 2017 loss from continuing operations of $31.7 million, or ($0.37) per share, on net sales of $1.1 billion.
That’s compared with a loss from continuing operations of $193 million, or ($1.79) per share, on net sales of $4.4 billion for the full year 2016.
Income from continuing operations, as adjusted, for the full year 2017 was $128.4 million, or $1.35 per share, compared with $95.3 million, or $0.88 per share, in 2016.e.”
Garrison also says the company delivered on commitments in 2017.
“The sales of MHPS and the remaining Construction businesses concluded the Focus element of our strategy and created substantial value for our shareholders,” says Garrison.
“We continued to simplify the company by executing our footprint rationalization plan, exiting 12 manufacturing locations totaling 2.6 million square feet.
He also notes other achievements:
- We reduced administrative expenses while increasing investment in innovation, strategic sourcing, and commercial excellence
- We fundamentally improved our capital structure by executing our disciplined capital allocation strategy, reducing debt by $583 million, refinancing at the lowest interest rates in the company’s history, and returning capital to shareholders by repurchasing $924 million of Terex stock.
“By implementing our strategy, strengthening the company, and increasing backlog by 56 percent, Garrison says “we are well positioned for what we expect to be an improving global market environment in 2018.
“We expect to increase revenue and improve operating margins in every business segment. We will continue to implement the Simplify and Execute to Win elements of our strategy, and follow our disciplined capital allocation strategy.
“We expect to deliver 2018 earnings per share of between $2.35 and $2.65, excluding restructuring, transformation investments, and other unusual items, on net sales approximately 10 percent higher than 2017.”