Terex Corp. Reports Fourth Quarter, Full Year 2016 Losses

February 27, 2017 – Last week, Terex Corp. announced a fourth quarter 2016 loss from continuing operations of $313.9 million on net sales of $1 billion. In the fourth quarter of 2015, the reported income from continuing operations was $23.8 million on net sales of $1.2 billion. Excluding after-tax charges of $321.3 million, income from continuing operations, as adjusted, for the fourth quarter of 2016 was $7.4 million, or $0.07 per share. This compares to income from continuing operations, as adjusted, of $32 million, or $0.29 per share, in the fourth quarter of 2015.

 

For the full year 2016, Terex reported a loss from continuing operations of $193 million on net sales of $4.4 billion, compared to income from continuing operations of $128.4 million on net sales of $5 billion for full year 2015. Income from continuing operations, as adjusted, for the full year 2016 was $95.3 million, or $0.88 per share, compared to $154.6 million, or $1.41 per share, in 2015.

 

Fourth quarter results were in line with Terex’s expectations, according to John Garrison, Terex president and CEO. “We have taken significant steps to better position Terex for the future,” continued Mr. Garrison. “We completed the sale of our MHPS business, initiated major restructuring actions within our Cranes segment, and dramatically improved our balance sheet. We continue to implement our strategy, to focus and simplify the company, and build capabilities in key commercial and operational areas.”

 

Looking ahead to 2017, Terex expects its primary global markets to remain challenging. “We anticipate lower fleet replacement demand from North American AWP rental customers,” he said. “The global crane market remains challenging, and we expect a further decline in 2017. We anticipate modest growth in our Materials Processing business.”

 

Combined with cost reduction actions and capital structure improvements, Terex expects to deliver 2017 earnings per share of between $0.60 and $0.80, excluding restructuring, impact from its ownership interest in Konecranes, and other unusual items, on net sales of approximately $3.9 billion.