Terex Corporation (NYSE:TEX) today announced income from
continuing operations of $85.2 million, or $0.78 per share for the
second quarter of 2015, as compared to income from continuing
operations of $87.8 million, or $0.76 per share for the second
quarter of 2014. Net sales were $1,828.5 million in the second
quarter of 2015, a decrease of $226.6 million, or 11.0%, when
compared with $2,055.1 million in the second quarter of 2014.
Excluding the impact of currency, net sales declined approximately
2.0%. Income from operations was $148.3 million in the second
quarter of 2015, a decrease of $12.6 million when compared to
income from operations of $160.9 million in the second quarter of
2014.
“The second quarter was a solid quarter in terms of financial
performance,” commented Ron DeFeo, Terex Chairman and Chief
Executive Officer. “Our AWP segment operating margin returned to
the mid-teens as anticipated, benefiting from increased
productivity and seasonally strong sales. We are encouraged by our
AWP backlog which is higher than the prior year level and expect
improved performance for this segment in the second half of 2015 as
compared to the second half of 2014. We are seeing pricing pressure
in the marketplace, but to date that has been mostly offset by
reductions in material input cost.”
Mr. DeFeo continued, “Our Materials Processing business had a
good quarter, expanding operating margins despite lower sales. MHPS
results were slightly below our expectations for the quarter, but a
strong second half performance is still anticipated. Our Cranes
segment performed generally in line with our expectations, but with
a weaker product mix. The overall market for cranes remains
challenging and we are not anticipating any near term improvements.
The Construction segment was slightly profitable, with pressure on
operating results continuing to come from the European and Indian
compact construction and material scrap handling businesses.”
Outlook: Mr. DeFeo added “Although
we had a solid second quarter performance, given where we are in
the year and the challenging environment we are operating in, we
now believe we will be in the low end of our previously announced
earnings and revenue guidance for the full year 2015. As a result,
our guidance is now for earnings per share for 2015 of between
$1.90 and $2.10, excluding restructuring and other unusual items,
on net sales of between $6.1 billion and $6.4 billion.”
Capital Structure: “Capital
allocation activities within the quarter proceeded as planned,”
commented Kevin Bradley, Terex Senior Vice President and Chief
Financial Officer. “We improved our balance sheet and borrowing
efficiency with the retirement of our convertible senior
subordinated notes and the re-pricing of our European term loan. We
also generated $76.3 million in free cash flow in the quarter."
The Company’s liquidity at June 30, 2015 decreased by $22
million compared to March 31, 2015 and totaled approximately $818
million, which was comprised of cash balances of $333 million and
borrowing availability under the Company’s revolving credit
facilities of $485 million. The decrease in liquidity was primarily
the result of the repayment of the convertible notes and a small,
“bolt on” acquisition for our Material Processing business, offset
by free cash flow generated from operations and positive cash
contribution from Terex Financial Services.
Return on Invested Capital (ROIC) was 9.9% at June 30, 2015
compared to 10.6% at June 30, 2014.
Taxes: The effective tax rate for
the second quarter of 2015 was 27.7% as compared to an effective
tax rate of 31.2% for the second quarter of 2014. The lower
effective rate for the three months ended June 30, 2015 was
primarily due to the geographic mix of earnings.
Backlog: Backlog for orders
deliverable during the next twelve months was $1,835 million at
June 30, 2015, a decrease of 14.3% from March 31, 2015 and a
decrease of 16.6% from June 30, 2014. Excluding the impact of
foreign exchange rate changes, backlog at June 30, 2015 decreased
7.0% from June 30, 2014 primarily driven by our decreases in our
MHPS and Cranes backlog.
All results are for continuing operations. 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.
In this press release, Terex refers to various GAAP (U.S.
generally accepted accounting principles) and non-GAAP financial
measures. These non-GAAP measures may not be comparable to
similarly titled measures being disclosed by other companies. Terex
believes that this non-GAAP information is useful to understanding
its operating results and the ongoing performance of its underlying
businesses. Certain financial measures are shown in italics the
first time referenced and are described in the text or the Glossary
at the end of this press release.
Conference call
The Company has scheduled a one hour conference call to review
the financial results on Thursday, July 30, 2015 at 8:00 a.m. ET.
Ronald M. DeFeo, Chairman and CEO, will host the call. A
simultaneous webcast of this call will be available on the
Company’s website, www.terex.com. To listen to the call, select
“Investor Relations” in the “About Terex” section on the home page
and then click on the webcast microphone link. Participants are
encouraged to access the call 10 minutes prior to the starting
time. The call will also be archived on the Company’s website under
“Audio Archives” in the “Investor Relations” section of the
website.
Forward-Looking Statements
This press release contains forward-looking information
regarding future events or the Company’s future financial
performance based on the current expectations of Terex Corporation.
In addition, when included in this press release, the words “may,”
“expects,” “intends,” “anticipates,” “plans,” “projects,”
“estimates” and the negatives thereof and analogous or similar
expressions are intended to identify forward-looking statements.
However, the absence of these words does not mean that the
statement is not forward-looking. The Company has based these
forward-looking statements on current expectations and projections
about future events. These statements are not guarantees of future
performance.
Because forward-looking statements involve risks and
uncertainties, actual results could differ materially. Such risks
and uncertainties, many of which are beyond the control of Terex,
include among others: Our business is cyclical and weak general
economic conditions affect the sales of our products and financial
results; our ability to successfully integrate acquired businesses;
the need to comply with restrictive covenants contained in our debt
agreements; our ability to generate sufficient cash flow to service
our debt obligations and operate our business; our ability to
access the capital markets to raise funds and provide liquidity;
our business is sensitive to government spending; our business is
very competitive and is affected by our cost structure, pricing,
product initiatives and other actions taken by competitors; our
retention of key management personnel; the financial condition of
suppliers and customers, and their continued access to capital; our
providing financing and credit support for some of our customers;
we may experience losses in excess of recorded reserves; impairment
in the carrying value of goodwill and other indefinite-lived
intangible assets; our ability to obtain parts and components from
suppliers on a timely basis at competitive prices; our business is
global and subject to changes in exchange rates between currencies,
regional economic conditions and trade restrictions; our operations
are subject to a number of potential risks that arise from
operating a multinational business, including compliance with
changing regulatory environments, the Foreign Corrupt Practices Act
and other similar laws and political instability; a material
disruption to one of our significant facilities; possible work
stoppages and other labor matters; compliance with changing laws
and regulations, particularly environmental and tax laws and
regulations; litigation, product liability claims, intellectual
property claims, class action lawsuits and other liabilities; our
ability to comply with an injunction and related obligations
imposed by the United States Securities and Exchange Commission
(“SEC”); disruption or breach in our information technology
systems; and other factors, risks and uncertainties that are more
specifically set forth in our public filings with the SEC.
Actual events or the actual future results of Terex may differ
materially from any forward-looking statement due to these and
other risks, uncertainties and significant factors. The
forward-looking statements speak only as of the date of this
release. Terex expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statement included in this release to reflect any changes in
expectations with regard thereto or any changes in events,
conditions, or circumstances on which any such statement is
based.
Terex Corporation is a lifting and material handling solutions
company reporting in five business segments: Aerial Work Platforms,
Construction, Cranes, Material Handling & Port Solutions and
Materials Processing. Terex manufactures a broad range of equipment
for use in various industries, including the construction,
infrastructure, manufacturing, shipping, transportation, refining,
energy, utility, quarrying and mining industries. Terex offers
financial products and services to assist in the acquisition of
Terex equipment through Terex Financial Services. Terex uses its
website (www.terex.com) and its
Facebook page (www.facebook.com/TerexCorporation) to make
information available to its investors and the market.
TEREX CORPORATION AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME
(unaudited)
(in millions, except per share data)
Three Months Six Months Ended June 30, Ended June 30, 2015
2014 2015 2014 Net sales $ 1,828.5 $ 2,055.1 $
3,324.1 $ 3,709.7 Cost of goods sold (1,444.3 )
(1,631.3 ) (2,663.3 ) (2,952.5 ) Gross profit 384.2
423.8 660.8 757.2 Selling, general and administrative expenses
(235.9 ) (262.9 ) (468.3 ) (521.3 )
Income (loss) from operations 148.3 160.9 192.5 235.9 Other income
(expense) Interest income 1.0 1.2 2.0 2.5 Interest expense (27.0 )
(31.7 ) (55.2 ) (62.1 ) Other income (expense) – net (3.0 )
(2.0 ) (9.9 ) (4.9 ) Income (loss) from
continuing operations before income taxes 119.3 128.4 129.4 171.4
(Provision for) benefit from income taxes (33.0 )
(40.0 ) (44.6 ) (51.5 ) Income (loss) from continuing
operations 86.3 88.4 84.8 119.9 Income (loss) from discontinued
operations – net of tax — 0.5 — 1.4 Gain (loss) on disposition of
discontinued operations- net of tax (0.4 ) 51.5
2.7 53.0 Net income (loss) 85.9
140.4 87.5 174.3 Net loss (income) attributable to noncontrolling
interest (1.1 ) (0.6 ) (1.7 ) 0.5
Net income (loss) attributable to Terex Corporation $ 84.8
$ 139.8 $ 85.8 $ 174.8 Amounts
attributable to Terex Corporation common stockholders: Income
(loss) from continuing operations $ 85.2 $ 87.8 $ 83.1 $ 120.4
Income (loss) from discontinued operations – net of tax — 0.5 — 1.4
Gain (loss) on disposition of discontinued operations – net of tax
(0.4 ) 51.5 2.7 53.0
Net income (loss) attributable to Terex Corporation $ 84.8
$ 139.8 $ 85.8 $ 174.8 Basic Earnings
(Loss) per Share Attributable to Terex CorporationCommon
Stockholders: Income (loss) from continuing operations $ 0.80 $
0.80 $ 0.78 $ 1.09 Income (loss) from discontinued operations – net
of tax — — — 0.01 Gain (loss) on disposition of discontinued
operations – net of tax — 0.47
0.03 0.48 Net income (loss) attributable to
Terex Corporation $ 0.80 $ 1.27 $ 0.81 $ 1.58
Diluted Earnings (Loss) per Share Attributable to Terex
CorporationCommon Stockholders: Income (loss) from continuing
operations $ 0.78 $ 0.76 $ 0.76 $ 1.03 Income (loss) from
discontinued operations – net of tax — — — 0.01 Gain (loss) on
disposition of discontinued operations – net of tax —
0.45 0.02 0.46 Net income
(loss) attributable to Terex Corporation $ 0.78 $ 1.21
$ 0.78 $ 1.50 Weighted average number of
shares outstanding in per share calculation Basic 106.2
110.3 106.2 110.5
Diluted 109.0 115.8 109.9
116.4
TEREX
CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEET
(unaudited)
(in millions, except par value)
June 30, December 31, 2015 2014 Assets Current assets Cash
and cash equivalents $ 332.7 $ 478.2
Trade receivables (net of allowance of
$26.9 and $30.5 at June 30, 2015 andDecember 31, 2014,
respectively)
1,252.5 1,086.4 Inventories 1,564.2 1,460.9 Prepaid assets 260.1
248.0 Other current assets 74.8 82.7
Total current assets 3,484.3 3,356.2 Non-current assets Property,
plant and equipment – net 680.6 690.3 Goodwill 1,073.7 1,131.0
Intangible assets – net 293.6 325.4 Other assets 474.7
425.1 Total assets $ 6,006.9 $ 5,928.0
Liabilities and Stockholders’ Equity Current
liabilities Notes payable and current portion of long-term debt $
72.6 $ 152.5 Trade accounts payable 814.4 736.1 Accrued
compensation and benefits 208.0 204.0 Accrued warranties and
product liability 67.8 74.2 Customer advances 196.4 197.4 Other
current liabilities 311.0 278.9 Total
current liabilities 1,670.2 1,643.1
Non-current liabilities Long-term debt, less current portion
1,834.0 1,636.3 Retirement plans 402.7 432.5 Other non-current
liabilities 150.4 177.0 Total
liabilities 4,057.3 3,888.9 Commitments
and contingencies Stockholders’ equity
Common stock, $.01 par value – authorized
300.0 shares; issued 128.8 and124.6 shares at June 30, 2015 and
December 31, 2014, respectively
1.3 1.2 Additional paid-in capital 1,256.6 1,251.5 Retained
earnings 2,057.6 1,984.9 Accumulated other comprehensive income
(loss) (548.7 ) (429.8 )
Less cost of shares of common stock in
treasury – 21.1 and 19.2 shares at June30, 2015 and December 31,
2014, respectively
(851.8 ) (801.9 ) Total Terex Corporation
stockholders’ equity 1,915.0 2,005.9 Noncontrolling interest
34.6 33.2 Total stockholders’ equity
1,949.6 2,039.1 Total liabilities and
stockholders’ equity $ 6,006.9 $ 5,928.0
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)
(in millions)
Six Months Ended June 30, 2015 2014 Operating
Activities Net income $ 87.5 $ 174.3 Adjustments to reconcile net
income to net cash provided by (used in) operatingactivities:
Depreciation and amortization 68.9 80.0 Changes in operating assets
and liabilities (net of effects of acquisitions anddivestitures):
Trade receivables (196.9 ) (183.6 ) Inventories (125.2 ) (162.4 )
Trade accounts payable 98.2 108.2 Customer advances (0.9 ) 33.7
Other, net (16.4 ) (25.7 ) Net cash (used in)
provided by operating activities (84.8 ) 24.5
Investing Activities Capital expenditures (48.7 ) (37.3 ) Other
investing activities, net (58.5 ) 157.4 Net
cash (used in) provided by investing activities (107.2 )
120.1 Financing Activities Net cash provided by (used
in) financing activities 68.6 (189.1 ) Effect
of Exchange Rate Changes on Cash and Cash Equivalents (22.1
) 0.7 Net Decrease in Cash and Cash Equivalents
(145.5 ) (43.8 ) Cash and Cash Equivalents at Beginning of Period
478.2 408.1 Cash and Cash Equivalents
at End of Period $ 332.7 $ 364.3
TEREX CORPORATION AND SUBSIDIARIES SEGMENT
RESULTS DISCLOSURE
(unaudited)
(in millions)
Second Quarter Year-to-Date 2015 2014
2015 2014 % of % of % of
% of
Net Sales
Net Sales
Net Sales
Net Sales
Consolidated Net sales $ 1,828.5 $ 2,055.1 $
3,324.1 $ 3,709.7 Gross profit 384.2 21.0 % 423.8
20.6 % 660.8 19.9 % 757.2 20.4 % SG&A 235.9 12.9
% 262.9 12.8 % 468.3 14.1 %
521.3 14.1 % Income from operations $ 148.3 8.1 % $ 160.9
7.8 % $ 192.5 5.8 % $ 235.9 6.4 %
AWP Net sales $
677.1 $ 717.9 $ 1,184.3 $ 1,302.8 Gross
profit 158.9 23.5 % 164.2 22.9 % 252.0 21.3 % 297.3 22.8 % SG&A
55.0 8.1 % 50.7 7.1 % 104.8
8.8 % 101.6 7.8 % Income from operations $
103.9 15.3 % $ 113.5 15.8 % $ 147.2 12.4 % $ 195.7 15.0 %
Construction Net sales $ 183.7 $ 227.2 $ 337.6
$ 422.9 Gross profit 22.1 12.0 % 26.5 11.7 % 38.7
11.5 % 45.6 10.8 % SG&A 21.4 11.6 % 22.5
9.9 % 42.5 12.6 % 46.6 11.0 %
Income (loss) from operations $ 0.7 0.4 % $ 4.0 1.8 % $ (3.8 ) (1.1
%) $ (1.0 ) (0.2 %)
Cranes Net sales $ 463.8 $
503.5 $ 850.7 $ 897.1 Gross profit 78.6 16.9 %
89.9 17.9 % 140.1 16.5 % 149.9 16.7 % SG&A 56.0
12.1 % 60.2 12.0 % 113.9 13.4 %
120.4 13.4 % Income from operations $ 22.6 4.9 % $ 29.7 5.9
% $ 26.2 3.1 % $ 29.5 3.3 %
MHPS Net sales $ 367.2
$ 431.4 $ 689.1 $ 799.6 Gross profit
78.5 21.4 % 97.2 22.5 % 150.9 21.9 % 181.8 22.7 % SG&A
77.2 21.0 % 94.5 21.9 % 153.9
22.3 % 185.4 23.2 % Income (loss) from operations $
1.3 0.4 % $ 2.7 0.6 % $ (3.0 ) (0.4 %) $ (3.6 ) (0.5 %)
MP Net sales $ 167.8 $ 183.1 $ 313.5 $
333.1 Gross profit 43.5 25.9 % 43.7 23.9 % 76.3 24.3 % 75.9
22.8 % SG&A 21.5 12.8 % 20.9 11.4 %
43.6 13.9 % 42.2 12.7 % Income from
operations $ 22.0 13.1 % $ 22.8 12.5 % $ 32.7 10.4 % $ 33.7 10.1 %
Corp & Eliminations Net sales $ (31.1 ) $ (8.0 )
$ (51.1 ) $ (45.8 ) Gross profit 2.6 (8.4 %) 2.3 (28.8 %) 2.8 (5.5
%) 6.7 (14.6 %) SG&A 4.8 (15.4 %) 14.1
(176.3 %) 9.6 (18.8 %) 25.1
(54.8 %) Loss from operations $ (2.2 ) 7.1 % $ (11.8 ) 147.5 % $
(6.8 ) 13.3 % $ (18.4 ) 40.2 %
GLOSSARY
In an effort to provide investors with additional information
regarding the Company’s results, Terex refers to various GAAP (U.S.
generally accepted accounting principles) and non-GAAP financial
measures which management believes provides useful information to
investors. These non-GAAP measures may not be comparable to
similarly titled measures being disclosed by other companies. In
addition, the Company believes that non-GAAP financial measures
should be considered in addition to, and not in lieu of, GAAP
financial measures. Terex believes that this non-GAAP information
is useful to understanding its operating results and the ongoing
performance of its underlying businesses. Management of Terex uses
both GAAP and non-GAAP financial measures to establish internal
budgets and targets and to evaluate the Company’s financial
performance against such budgets and targets.
The amounts described below are unaudited, are reported in
millions of U.S. dollars (except per share data and percentages),
and are as of or for the period ended June 30, 2015, unless
otherwise indicated.
As changes in foreign currency exchange rates have a
non-operating impact on the translation of our financial results,
we believe excluding the effect of these changes assists in the
assessment of our business results between periods. We calculate
the translation effect of foreign currency exchange rate changes by
translating the current period results at the rates that the
comparable prior periods were translated to isolate the foreign
exchange component of the fluctuation from the operational
component.
Backlog is defined as firm orders that are expected to be
filled within one year. The disclosure of backlog aids in the
analysis of the Company’s customers’ demand for product, as well as
the ability of the Company to meet that demand. The backlog of the
various Terex businesses is not necessarily indicative of sales to
be recognized in a specified future period.
Jun 30,
Mar 31, % Jun 30, % 2015 2015 change 2014 change
Consolidated Backlog $ 1,835.0 $ 2,141.0 (14.3 )% $ 2,199.2 (16.6
)% AWP $ 436.3 $ 699.0 (37.6 )% $ 418.4 4.3 % Construction $ 164.0
$ 204.0 (19.6 )% $ 187.8 (12.7 )% Cranes $ 540.2 $ 563.4 (4.1 )% $
661.4 (18.3 )% MHPS $ 630.8 $ 595.8 5.9 % $ 864.8 (27.1 )% MP $
63.7 $ 78.8 (19.2 )% $ 66.8 (4.6 )%
Debt is calculated using the Condensed Consolidated
Balance Sheet amounts for Notes payable and current portion of
long-term debt plus Long-term debt, less current portion. Net
Debt is calculated as Debt less Cash and cash equivalents.
These measures aid in the evaluation of the Company’s financial
condition.
June 30, 2015 December 31, 2014 Long
term debt, less current portion $ 1,834.0 $ 1,636.3 Notes payable
and current portion of long-term debt 72.6 152.5 Debt
1,906.6 1,788.8 Less: Cash and cash equivalents (332.7)
(478.2) Net Debt $ 1,573.9 $ 1,310.6
EBITDA is defined as earnings, before interest, taxes,
depreciation and amortization. The Company calculates this by
adding the amount of depreciation and amortization expenses that
have been deducted from income from operations back into income
from operations to arrive at EBITDA. Depreciation and amortization
amounts reported in the Consolidated Statement of Cash Flows
include amortization of debt issuance costs that are recorded in
Other income (expense) - net and, therefore, are not included in
EBITDA. Terex believes that disclosure of EBITDA will be helpful to
those reviewing its performance, as EBITDA provides information on
Terex’s ability to meet debt service, capital expenditure and
working capital requirements, and is also an indicator of
profitability.
Three Months Six Months Ended June 30,
Ended June 30, 2015 2014 2015 2014 Income (loss) from
operations $ 148.3 $ 160.9 $ 192.5 $ 235.9 Depreciation 28.6 28.7
53.9 55.8 Amortization 7.4 12.0 15.0 23.8 Bank fee amortization not
included in Income (loss) from operations (1.3 ) (2.1
) (2.6 ) (4.2 ) EBITDA $ 183.0 $ 199.5
$ 258.8 $ 311.3
Free cash flow is defined as Net cash provided by (used
in) operating activities, plus (minus) increases (decreases) in
Terex Financial Services (“TFS”) finance receivable assets, plus
(minus) decreases (increases) in cash balances held for settlement
on securitized assets, less Capital expenditures. The definition
reflects the Company’s entry into a securitization facility in the
second quarter of 2015.
Three Months Six Months Ended June 30,
Ended June 30, 2015 2014 2015 2014 Net cash provided
by (used in) operating activities $ 25.9 $ (0.7 ) $ (84.8 ) $ 24.5
Plus: Increase in TFS Assets 79.7 21.9 121.5 41.5 Less: Increase in
cash for securitization settlement (6.8 ) — (6.8 ) — Less: Capital
expenditures (22.5 ) (18.3 ) (48.7 )
(37.3 ) Free Cash Flow $ 76.3 $ 2.9 $ (18.8 ) $ 28.7
Return on Invested Capital (“ROIC”) is determined by
dividing the sum of Net Operating Profit After Tax (“NOPAT”)(as
defined below) for each of the previous four quarters by the
average of the sum of Total Terex Corporation stockholders’ equity
plus Debt (as defined above) less Cash and cash equivalents for the
previous five quarters. NOPAT for each quarter is calculated by
multiplying Income (loss) from operations by a figure equal to one
minus the effective tax rate of the Company. The Company believes
that returns on capital deployed in Terex Financial Services
(“TFS”) does not represent its primary operations and, therefore,
TFS finance receivable assets and results from operations have been
excluded from the calculation below. The effective tax rate is
equal to the (Provision for) benefit from income taxes divided by
Income (loss) from continuing operations before income taxes for
the respective quarter. The Company calculates ROIC using the last
four quarters’ NOPAT as this represents the most recent 12-month
period at any given point of determination. In order for the
denominator of the ROIC ratio to properly match the operational
period reflected in the numerator, the Company includes the average
of five quarters’ ending balance sheet amounts so that the
denominator includes the average of the opening through ending
balances (on a quarterly basis) thereby providing, over the same
time period as the numerator, four quarters of average invested
capital.
Terex management and the Board of Directors use ROIC as one of
the primary measures to assess operational performance and in
connection with certain compensation programs. Terex utilizes ROIC
as a unifying metric because management believes that it measures
how effectively the Company invests its capital and provides a
better measure to compare the Company to peer companies to assist
in assessing how it drives operational improvement. ROIC measures
return on the amount of capital invested in the Company’s primary
businesses, excluding TFS, as opposed to another metric such as
return on Terex Corporation stockholders’ equity that only
incorporates book equity, and is thus a more accurate and
descriptive measure of the Company’s performance. Terex also
believes that adding Debt less Cash and cash equivalents to Total
Terex Corporation stockholders’ equity provides a better comparison
across similar businesses regarding total capitalization, and those
ROIC highlights the level of value creation as a percentage of
capital invested.
See reconciliation of adjusted amounts below on table following
ROIC table. Amounts are as of and for the three months ended for
the periods referenced in the table below.
Jun '15 Mar '15
Dec '14 Sep '14 Jun '14 Provision for (benefit from) income taxes $
33.0 $ 11.6 $ (41.5 ) $ 27.7 Divided by: Income (loss) before
income taxes 119.3 10.1 39.4
86.4 Effective tax rate 27.7 % 114.9 % (105.3
%) 32.1 % Income (loss) from operations as adjusted $ 147.2
$ 46.5 $ 72.3 $ 119.7 Multiplied by: 1 minus Effective tax rate
72.3 % (14.9 %) 205.3 % 67.9 % Adjusted
net operating income (loss) after tax $ 106.4 $ (6.9 ) $
148.4 $ 81.3 Debt (as defined above) $ 1,906.6
$ 1,872.9 $ 1,788.8 $ 1,851.9 $ 1,922.5 Less: Cash and cash
equivalents (332.7 ) (351.3 ) (478.2 )
(344.5 ) (364.3 ) Debt less Cash and cash equivalents $
1,573.9 $ 1,521.6 $ 1,310.6 $ 1,507.4 $ 1,558.2 Total Terex
Corporation stockholders’ equity as adjusted $ 1,630.8 $
1,543.3 $ 1,843.2 $ 2,010.5 $ 2,138.5
Debt less Cash and cash equivalents plus
TotalTerex Corporation stockholders’ equity as adjusted
$ 3,204.7 $ 3,064.9 $ 3,153.8 $ 3,517.9
$ 3,696.7 June 30, 2015 ROIC 9.9 %
Adjusted net operating income (loss) after tax (last 4 quarters) $
329.2
Average Debt less Cash and cash
equivalents plusTotal Terex Corporation stockholders’ equity
asadjusted (5 quarters)
$ 3,327.6
Reconciliation of income (loss) from
operations:
Jun '15 Mar '15 Dec '14 Sep '14 Income (loss) from operations as
reported $ 148.3 $ 44.2 $ 70.4 $ 116.8 (Income) loss from
operations for TFS (1.1 ) 2.3 1.9
2.9 Income (loss) from operations as adjusted
$ 147.2 $ 46.5 $ 72.3 $ 119.7
Reconciliation of Terex Corporation stockholders’ equity: Terex
Corporation stockholders’ equity as reported $ 1,915.0 $ 1,747.8 $
2,005.9 $ 2,217.7 $ 2,331.6 TFS assets (284.2 )
(204.5 ) (162.7 ) (207.2 ) (193.1 ) Terex
Corporation stockholders’ equity as adjusted $ 1,630.8 $
1,543.3 $ 1,843.2 $ 2,010.5 $ 2,138.5
Trailing Three Month Annualized Net Sales is calculated
using the net sales for the quarter multiplied by four.
Three Months Ended June 30, 2015 2014
Second Quarter Net Sales $ 1,828.5 $ 2,055.1 x 4 x 4 Trailing Three
Month Annualized Net Sales $ 7,314.0 $ 8,220.4
Working Capital is calculated using the Consolidated
Balance Sheet amounts for Trade receivables (net of allowance) plus
Inventories less Trade accounts payable and customer advances. The
Company views excessive working capital as an inefficient use of
resources, and seeks to minimize the level of investment without
adversely impacting the ongoing operations of the business. For the
periods below, working capital was:
June 30, 2015 December 31, 2014
June 30, 2014 Inventories $ 1,564.2 $ 1,460.9 $ 1,779.0 Trade
Receivables 1,252.5 1,086.4 1,368.4 Less: Trade Accounts Payable
(814.4 ) (736.1 ) (800.8 ) Less: Customer Advances (196.4 )
(197.4 ) (334.5 ) Total Working Capital $ 1,805.9
$ 1,613.8 $ 2,012.1
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version on businesswire.com: http://www.businesswire.com/news/home/20150729006817/en/
Terex CorporationTom Gelston, 203-222-5943Vice President,
Investor Relationsthomas.gelston@terex.com
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