Terex Updates 2014 Guidance
September 15 2014 - 8:05AM
Business Wire
Terex Corporation (NYSE:TEX) today announced that it is lowering
its full year 2014 guidance, as well as providing quarterly
guidance for the third quarter. Full year 2014 earnings per share
is now expected to be between $2.35 and $2.50, as adjusted for
certain non-recurring items. Previous full year 2014 guidance was
an earnings per share of between $2.50 and $2.80. Due to the timing
of this announcement, the Company is also providing third quarter
2014 earnings per share guidance of $0.55 - $0.65 per share,
excluding certain non-recurring items.
The primary driver of the guidance change is weakness in the
Cranes segment. Despite a positive trend in book-to-bill ratios
over the first half of 2014, the Cranes order rate has dropped
significantly in July and August. Additionally, Cranes customers in
developing markets are struggling to secure financing for orders
scheduled for delivery in the second half of 2014.
“We do not take lightly the need to adjust market expectations.
Admittedly, the global Cranes marketplace has been challenging to
forecast. During 2014, we have certainly seen more muted end
markets in Cranes than we originally contemplated back in February.
While we do see positive trends in certain aspects of our other
segments, this has been more than offset by the recent weakness in
Cranes end markets,” commented Ron DeFeo, Terex Chairman and
CEO.
“The balance of our guidance remains intact, including our
guidance for Free Cash Flow of between $200 and $250 million in
2014. We also remain positive on the longer term prospects for EPS
growth in our business, driven in no small part by the internal
improvement initiatives underway throughout our Company.”
Forward Looking Statements
This press release contains forward-looking information based on
the current expectations of Terex Corporation. 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 those factors
that are more specifically set forth in the public filings of Terex
with the Securities and Exchange Commission. Actual events or the
actual future results of Terex may differ materially from any
forward looking statement due to those and other risks,
uncertainties and significant factors. The forward-looking
statements speak only as of the date of this press release. Terex
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
included in this press 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 CorporationTom Gelston, 203-222-5943Vice President,
Investor Relationsthomas.gelston@terex.com
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