Terex Corporation announced income from continuing operations of $20.5 million, for the first quarter of 2012, as compared to income from continuing operations of $5.0 million, for the first quarter of 2011. Excluding the impact of a write down of an acquisition related note receivable of approximately $12 million, income from continuing operations as adjusted was approximately $33 million in the first quarter of 2012. Excluding certain items, loss from continuing operations as adjusted was a loss of $20.3 million in the first quarter of 2011. The glossary at the end of this press release contains further details regarding these items.
Ron DeFeo, Terex Chairman and CEO stated, “Overall, net sales were consistent with our expectations. North America was a strong market for most product categories, with the exception of our Roadbuilding products. We believe the global business environment continues to support growth and increased equipment sales. Although the Chinese market has softened somewhat, this was not unexpected and was built into our expectations for the year. We continue to be cautious about European markets where economic activity has been strong in some areas and weak in others.”
Mr. DeFeo continued, “In terms of segment performance, we are encouraged by the performances of our Aerial Work Platforms (AWP) and Materials Processing (MP) businesses, both of which achieved operating margins in the high single digits giving us confidence that we will achieve our 2012 targets. Our Cranes business improved significantly versus the prior year, with a positive operating margin of approximately 5% in the quarter versus a negative 4% in the prior year period on a similar net sales level, excluding the effects of the write-down of receivables in both periods. Our Construction segment is on target for the year, with a breakeven first quarter and a backlog and order book that supports a profitable second quarter. Our MHPS segment’s operating results were in line with what we anticipated for the quarter.”
Net sales were $1,819.4 million in the first quarter of 2012, an increase of 44.8% from $1,256.2 million in the first quarter of 2011. Excluding the impact of the acquisition of Demag Cranes AG, net sales increased approximately 16% from the comparable prior year period. Income from operations was $63.8 million in the first quarter of 2012, an improvement of $73.1 million when compared to a loss from operations of $9.3 million in the first quarter of 2011. Excluding the impact of a write down of an acquisition related note receivable of approximately $12 million, income from operations as adjusted was $76.1 million. Excluding certain items from the first quarter of 2011, loss from operations as adjusted was approximately $3.8 million.
To read the full press release, click here.