Despite flat sales, Terex announced increased first quarter earnings thanks to the continued success of its Aerial Work Platform segment.
Net sales were at $1.6 billion for the quarter, unchanged from the first quarter of 2013. Profit increased 69 percent to $32.6 million, or 28 cents per share.
“We remain encouraged by the performance of our Aerial Work Platform segment, which delivered excellent results in the first quarter,” Terex chairman and CEO Ron DeFeo said in a prepared statement. “Performance across our remaining businesses was mixed.”
Aerial Work Platform sales were up 15 percent to $585 million over the first quarter of 2013 with profit up 13 percent to $82.2 million. The company expects growth in AWP to continue throughout the ear.
Net sales from construction fell year-over-year during the first quarter, down 7 percent to $195.7 million. The construction segment still operated at a loss of $5 million, but that is improved from the first quarter of 2013 when the segment lost $14.5 million.
The Material Handling and Port Solutions segment saw sales increase 8 percent to $368.2 million but still accounted for an operating loss of $6.3 million. DeFeo says the company expected the losses from construction and MHPS and “expect better operating results from these businesses for the balance of 2014.
DeFeo also called the company’s cranes performance “disappointing,” with sales down 16 percent to $393.6 million. The segment accounted for an operating loss of $200,000, down from a profit of $32.5 million in the first quarter of 2013. DeFeo says the company expects the segment to improve, particularly in the second half of the year, based on recent order trends
Materials Processing sales were down 3 percent to $150 million with profit down 7 percent to $10.9 million.
DeFeo says the company’s forecast for the rest of 2014 has not changed from an expectation of sales between $7.3 billion and $7.7 billion and earnings per share between $2.50 and $2.80.