Terex Corporation announced income from continuing operations of $20.9 million, or $0.18 per share for the first quarter of 2013, as compared to income from continuing operations of $20.5 million, or $0.18per share for the first quarter of 2012.
Excluding the impact of a charge related to the divestiture of certain roadbuilding assets of approximately $3.9 million, or $0.03 per share, and a charge related to the Material Handling & Port Solutions (MHPS) business of $1.9 million, or $0.02per share, income from continuing operations as adjusted was $26.7 million, or $0.23 per share in the first quarter of 2013. Excluding the write down of an acquisition related note receivable of$12.3 million, income from continuing operations as adjusted was$32.8 million, or$0.29 per share, in the first quarter of 2012.
Net sales were $1,723.1 millionin the first quarter of 2013, a decrease of 5.3% from $1,819.4 millionin the first quarter of 2012. Income from operations was $68.4 millionin the first quarter of 2013, an improvement of $4.6 millionwhen compared to income from operations of $63.8 millionin the first quarter of 2012. Excluding the impact of a write down of a charge related to the divestiture of the roadbuilding assets of approximately $3.4 millionand a charge related to the MHPS business of $2.7 million, income from operations as adjusted was$74.5 million in the first quarter of 2013. Excluding the write down of an acquisition related note receivable of$12.3 million, income from operations as adjusted was approximately$76.1 million in the first quarter of 2012.
All results are for continuing operations, unless stated otherwise. All per share amounts are on a fully diluted basis. A comprehensive review of the quarterly financial performance is contained in the presentation that will accompany the Company’s earnings conference call.
“Our business performance was mixed in the first quarter,” commented Ron DeFeo, Terex chairman and chief executive officer. “We are encouraged by the performance of our Aerial Work Platform (AWP) business, which continues to reflect the strong end-market dynamics of the rental channel, particularly inNorth America. Our Cranes and Materials Processing businesses also positively contributed to our results and performed generally as expected. However, we have seen significant global revenue shortfalls in our MHPS business, with particular weakness inEuropeandIndia. Our Construction business is also reflecting the challenges of a less certain customer base inEurope. As a result, we are initiating additional actions in the second quarter to further adjust the cost structure of the MHPS and Construction organizations to better reflect the reduced demand for certain of their products. We anticipate that we will be incurring restructuring and related charges of approximately$30-$50 millionin the MHPS segment in the second quarter, and expect to realize a similar amount in savings over the next 12 to 24 months.”
Outlook : The Company’s overall outlook for fiscal year 2013 financial performance is consistent with our prior view, although our segment guidance now reflects the new reporting structure. Mr. DeFeo added, “Terex remains focused on improving profit through organic means, integrating the businesses more thoroughly, and generating consistent free cash flow. We reiterate our annual outlook of earnings per share to be between$2.40 and $2.70per share, excluding restructuring and other unusual items, on net sales of between$7.9 billion and $8.3 billion.”
