News Release

FOR IMMEDIATE RELEASE

TEREX ANNOUNCES FIRST QUARTER 2014 RESULTS

WESTPORT, CT, April 30, 2014 – Terex Corporation (NYSE: TEX) today announced income from continuing operations of $32.6 million, or $0.28 per share for the first quarter of 2014, as compared to income from continuing operations of $19.3 million, or $0.17 per share for the first quarter of 2013. Excluding the impact of certain items totaling $5.8 million, or $0.05 per share, income from continuing operations as adjusted in the first quarter of 2013 was $25.1 million, or $0.22 per share. The glossary at the end of this press release contains details regarding the impact of certain items in the first quarter of 2013.

Net sales were $1,654.6 million in the first quarter of 2014, flat with the $1,653.7 million in the first quarter of 2013. Income from operations was $75.0 million in the first quarter of 2014, an improvement of $9.4 million when compared to income from operations of $65.6 million in the first quarter of 2013. Excluding the impact of certain items totaling $6.1 million, income from operations as adjusted in the first quarter of 2013 was $71.7 million.

“We remain encouraged by the performance of our Aerial Work Platform (AWP) segment, which delivered excellent results in the first quarter,” commented Ron DeFeo, Terex Chairman and Chief Executive Officer. “Performance across our remaining businesses was mixed. The Materials Processing (MP), Construction and Material Handling & Port Solutions (MHPS) segments all delivered quarters roughly in-line with our expectations. While both the MHPS and Construction segments had an operating loss in the quarter, we planned for and continue to expect better operating results from these businesses for the balance of 2014. Our Cranes segment had a disappointing first quarter, but recent order trends suggest improvements as the year progresses, particularly in the second half of the year.”

Outlook: “The Company’s overall outlook for 2014 has not changed,” Mr. DeFeo added. “We expect continued strength from our AWP segment and improvement from our other segments throughout the remainder of 2014. We reiterate our annual outlook for earnings per share of between $2.50 and $2.80, excluding restructuring and other unusual items, on net sales of between $7.3 billion and $7.7 billion. Terex remains focused on improving profit through organic means, integrating the businesses more thoroughly, and generating free cash flow.”

Capital Structure: “Capital allocation activities within the quarter proceeded as planned” commented Kevin Bradley, Terex Senior Vice President and Chief Financial Officer. “During the quarter we completed the squeeze out of minority shares of Terex Material Handling & Port Solutions AG for $71 million. We also repurchased $33 million of Terex Corporation shares within the quarter for a cumulative total of $63 million since the inception of the program in December 2013."

The Company’s liquidity at March 31, 2014 decreased by $104.4 million compared to December 31, 2013 and totaled $631.8 million, which was comprised of cash balances of $390.5 million and borrowing availability under the Company’s revolving credit facilities of $241.3 million.

Return on Invested Capital (ROIC) was 8.6% for the trailing twelve months ended March 31, 2014.

Taxes: The effective tax rate for the first quarter of 2014 was 26.7% as compared to an effective tax rate of 45.2% for the first quarter of 2013. The lower effective tax rate in the first quarter of 2014 was primarily due to the reduced impact of losses not benefited and greater benefit from uncertain tax provision releases than the first quarter of 2013. The Company still expects the effective tax rate to be between 33% and 35% for 2014.

Backlog: Backlog for orders deliverable during the next twelve months was $2,363.7 million at March 31, 2014, an increase of 29.3% from December 31, 2013 and an increase of 10.3% from March 31, 2013. Backlog for all segments increased sequentially with AWP and Cranes being the largest contributors to the increase. The Glossary contains further details regarding 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, May 1, 2014 at 8:30 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.

Contact Information:

Tom Gelston

Vice President, Investor Relations

Phone: 203-222-5943

Email: thomas.gelston@terex.com

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 ability to timely manufacture and deliver products to customers; 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, patent claims, class action lawsuits and other liabilities; our ability to comply with an injunction and related obligations resulting from the settlement of an investigation by the United States Securities and Exchange Commission (“SEC”); our implementation of a global enterprise resource planning system and its performance; 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 AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(unaudited)

(in millions, except per share data)

   

Three Months

 

Ended March 31,

2014

 

2013

 

Net sales

$

1,654.6

 

$

1,653.7

    Cost of goods sold

 

(1,321.2)

 

 

(1,332.5)

    Gross profit

 

333.4

   

321.2

Selling, general and administrative expenses

 

(258.4)

 

 

(255.6)

    Income (loss) from operations

 

75.0

   

65.6

Other income (expense)

         

    Interest income

 

1.3

   

1.7

    Interest expense

 

(30.4)

   

(33.4)

    Other income (expense) – net

 

(2.9)

 

 

(1.6)

Income (loss) from continuing operations before income taxes

 

43.0

   

32.3

    (Provision for) benefit from income taxes

 

(11.5)

 

 

(14.6)

Income (loss) from continuing operations

 

31.5

   

17.7

    Income (loss) from discontinued operations – net of tax

 

0.9

   

1.6

    Gain (loss) on disposition of discontinued operations – net of tax

 

1.5

 

 

3.0

Net income (loss)

 

33.9

   

22.3

    Net (income) loss attributable to noncontrolling interest

 

1.1

 

 

1.6

Net income (loss) attributable to Terex Corporation

$

35.0

 

$

23.9

Amounts attributable to Terex Corporation common stockholders:

         

    Income (loss) from continuing operations

$

32.6

 

$

19.3

    Income (loss) from discontinued operations – net of tax

 

0.9

   

1.6

    Gain (loss) on disposition of discontinued operations – net of tax

 

1.5

 

 

3.0

Net income (loss) attributable to Terex Corporation

$

35.0

 

$

23.9

Basic Earnings (loss) Per Share Attributable to Terex Corporation
Common Stockholders:

         

    Income (loss) from continuing operations

$

0.30

 

$

0.18

    Income (loss) from discontinued operations – net of tax

 

0.01

   

0.01

    Gain (loss) on disposition of discontinued operations – net of tax

 

0.01

 

 

0.03

Net income (loss) attributable to Terex Corporation

$

0.32

 

$

0.22

Diluted Earnings (loss) Per Share Attributable to Terex Corporation
Common Stockholders:

         

    Income (loss) from continuing operations

$

0.28

 

$

0.17

    Income (loss) from discontinued operations – net of tax

 

0.01

   

0.01

    Gain (loss) on disposition of discontinued operations – net of tax

 

0.01

 

 

0.03

Net income (loss) attributable to Terex Corporation

$

0.30

 

$

0.21

Weighted average number of shares outstanding in per share calculation

         

    Basic

 

110.8

 

 

110.8

    Diluted

 

117.3

 

 

116.1

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited)

(in millions, except par value)

   

March 31,

 

December 31,

 

2014

 

2013

Assets

         

Current assets

         

    Cash and cash equivalents

$

390.5

 

$

408.1

    Trade receivables (net of allowance of $46.1 and $47.6 at March 31, 2014 and December 31, 2013, respectively)

 

1,141.4

   

1,176.8

    Inventories

 

1,788.2

   

1,613.2

    Other current assets

 

312.6

   

312.0

    Current assets – discontinued operations

 

110.9

 

 

129.3

    Total current assets

 

3,743.6

   

3,639.4

Non-current assets

         

    Property, plant and equipment – net

 

784.4

   

789.4

    Goodwill

 

1,265.7

   

1,245.6

    Intangible assets – net

 

440.2

   

444.8

    Other assets

 

426.2

   

401.9

    Non-current assets – discontinued operations

 

17.3

   

15.6

Total assets

$

6,677.4

 

$

6,536.7

           

Liabilities and Stockholders’ Equity

       

Current liabilities

         

    Notes payable and current portion of long-term debt

$

71.9

 

$

86.8

    Trade accounts payable

 

753.5

   

689.1

    Accrued compensation and benefits

 

238.4

   

234.3

    Accrued warranties and product liability

 

93.5

   

96.2

    Customer advances

 

347.5

   

302.1

    Other current liabilities

 

296.9

   

270.1

    Current liabilities – discontinued operations

 

36.9

 

 

46.1

    Total current liabilities

 

1,838.6

 

 

1,724.7

Non-current liabilities

         

    Long-term debt, less current portion

 

1,984.0

   

1,889.9

    Retirement plans

 

387.8

   

388.2

    Other non-current liabilities

 

246.9

   

259.5

    Non-current liabilities – discontinued operations

 

5.6

   

5.7

Total liabilities

 

4,462.9

 

 

4,268.0

Commitments and contingencies

         

Redeemable noncontrolling interest

 

   

53.9

Stockholders’ equity

         

    Common stock, $.01 par value – authorized 300.0 shares; issued 124.5 and 123.7 shares at March 31, 2014 and December 31, 2013, respectively

 

1.2

   

1.2

    Additional paid-in capital

 

1,227.1

   

1,247.5

    Retained earnings

 

1,717.6

   

1,688.1

    Accumulated other comprehensive (loss) income

 

(100.2)

   

(116.5)

    Less cost of shares of common stock in treasury – 14.6 and 13.8 shares at March 31, 2014 and December 31, 2013, respectively

 

(662.5)

 

 

(630.2)

    Total Terex Corporation stockholders’ equity

 

2,183.2

   

2,190.1

    Noncontrolling interest

 

31.3

 

 

24.7

Total stockholders’ equity

 

2,214.5

   

2,214.8

Total liabilities, redeemable noncontrolling interest and stockholders’ equity

$

6,677.4

 

$

6,536.7

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited)

(in millions)

   

Three Months

 

Ended March 31,

   

2014

 

2013

Operating Activities

     

    Net income

$

33.9

 

$

22.3

    Adjustments to reconcile net income to net cash provided by (used in) operating activities:

         

    Depreciation and amortization

 

39.1

   

38.4

    Changes in operating assets and liabilities (net of effects of acquisitions and divestitures):

         

    Trade receivables

 

61.2

   

(81.1)

    Inventories

 

(195.5)

   

(44.6)

    Trade accounts payable

 

54.8

   

97.8

    Customer advances

 

46.2

   

45.4

    Other, net

 

(14.5)

 

 

(19.4)

    Net cash provided by (used in) operating activities

 

25.2

   

58.8

Investing Activities

         

    Capital expenditures

 

(19.0)

   

(22.5)

    Other investing activities, net

 

(6.9)

 

 

30.2

Net cash (used in) provided by investing activities

 

(25.9)

 

 

7.7

Financing Activities

         

    Net cash provided by (used in) financing activities

 

(17.4)

 

 

0.1

Effect of Exchange Rate Changes on Cash and Cash Equivalents

 

0.5

 

 

(14.9)

Net Increase (Decrease) in Cash and Cash Equivalents

 

(17.6)

   

51.7

Cash and Cash Equivalents at Beginning of Period

 

408.1

 

 

678.0

Cash and Cash Equivalents at End of Period

$

390.5

 

$

729.7

TEREX CORPORATION AND SUBSIDIARIES

SEGMENT RESULTS DISCLOSURE

(unaudited)

(in millions)

     

    First Quarter

     

    2014

     

    2013

           

    % of

           

    % of

    Net Sales

    Net Sales

    Consolidated

     

                 

    Net sales

    $

    1,654.6

         

    $

    1,653.7

       

    Gross profit

     

    333.4

     

    20.1%

       

    321.2

     

    19.4%

    SG&A

     

    258.4

     

    15.6%

     

     

    255.6

     

    15.5%

    Income from operations

    $

    75.0

     

    4.5%

     

    $

    65.6

     

    4.0%

                       

    AWP

                     

    Net sales

    $

    584.9

         

    $

    509.1

       

    Gross profit

     

    133.1

     

    22.8%

       

    118.5

     

    23.3%

    SG&A 

     

    50.9

     

    8.7%

     

     

    46.1

     

    9.1%

    Income from operations

    $

    82.2

     

    14.1%

     

    $

    72.4

     

    14.2%

                       

    Construction

                     

    Net sales

    $

    195.7

         

    $

    210.4

       

    Gross profit

     

    19.1

     

    9.8%

       

    14.6

     

    6.9%

    SG&A 

     

    24.1

     

    12.3%

     

     

    29.1

     

    13.8%

    Loss from operations

    $

    (5.0)

     

    (2.6)%

     

    $

    (14.5)

     

    (6.9)%

                       

    Cranes

                     

    Net sales

    $

    393.6

         

    $

    470.9

       

    Gross profit

     

    60.0

     

    15.2%

       

    85.9

     

    18.2%

    SG&A

     

    60.2

     

    15.3%

     

     

    53.4

     

    11.3%

      Income (loss) from operations

    $

    (0.2)

     

    (0.1)%

     

    $

    32.5

     

    6.9%

                       

    MHPS

                     

    Net sales

    $

    368.2

         

    $

    339.2

       

    Gross profit

     

    84.6

     

    23.0%

       

    68.7

     

    20.3%

    SG&A

     

    90.9

     

    24.7%

     

     

    97.8

     

    28.8%

    Loss from operations

    $

    (6.3)

     

    (1.7)%

     

    $

    (29.1)

     

    (8.6)%

                       

    MP

                     

    Net sales

    $

    150.0

         

    $

    154.3

       

    Gross profit

     

    32.2

     

    21.5%

       

    31.7

     

    20.5%

    SG&A

     

    21.3

     

    14.2%

     

     

    20.0

     

    13.0%

    Income from operations

    $

    10.9

     

    7.3%

     

    $

    11.7

     

    7.6%

                       

    Corp & Eliminations

                     

    Net sales

    $

    (37.8)

         

    $

    (30.2)

       

    Gross profit

     

    4.4

     

    (11.6)%

       

    1.8

     

    (6.0)%

    SG&A

     

    11.0

     

    (29.1)%

     

     

    9.2

     

    (30.5)%

    Loss from operations

    $

    (6.6)

     

    17.5%

     

    $

    (7.4)

     

    24.5%

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.

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. Similarly, the impact of changes in our results from acquisitions that were not included in comparable prior periods is subtracted from the absolute change in results to allow for better comparability of results between periods.

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.

     

Mar 31,

   

Mar 31,

 

%

   

Dec 31,

 

%

2014

2013

change

2013

change

Consolidated Backlog

$

2,363.7

 

$

2,142.2

 

10.3 %

 

$

1,827.7

 

29.3 %

AWP

$

522.9

 

$

577.3

 

(9.4)%

 

$

294.4

 

77.6 %

Construction

$

214.1

 

$

166.7

 

28.4 %

 

$

165.6

 

29.3 %

Cranes

$

673.4

 

$

634.2

 

6.2 %

 

$

501.2

 

34.4 %

MHPS

$

878.4

 

$

679.1

 

29.3 %

 

$

805.3

 

9.1 %

MP

$

74.9

 

$

84.9

 

(11.8)%

 

$

61.2

 

22.4 %

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 ended

     

    March 31,

     

    2014

     

    2013

    Income (loss) from operations

    $

    75.0

     

    $

    65.6

    Depreciation

     

    27.1

       

    25.4

    Amortization

     

    11.8

       

    12.8

    Bank fee amortization not included in Income (loss) from operations

     

    (2.1)

       

    (2.2)

    EBITDA

     

    111.8

     

     

    101.6

    Operating profit adjustments

     

       

    6.1

    Adjusted EBITDA

    $

    111.8

     

    $

    107.7

               

    MHPS - EBITDA

    Three months ended

     

    March 31,

     

    2014

     

    2013

    Income (loss) from operations

    $

    (6.3)

     

    $

    (29.1)

    Depreciation

     

    10.2

       

    9.4

    Amortization

     

    6.6

       

    7.3

    EBITDA

     

    10.5

     

     

    (12.4)

    Operating profit adjustments

     

       

    2.7

    Adjusted EBITDA

    $

    10.5

     

    $

    (9.7)

Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures.

     

    Three months ended

     

    March 31,

     

    2014

     

    2013

    Net cash provided by (used in) operating activities

    $

    25.2

     

    $

    58.8

    Capital expenditures

     

    (19.0)

       

    (22.5)

    Free Cash Flow

    $

    6.2

     

    $

    36.3

Income (loss) from operations as adjusted / Income (loss) from continuing operations as adjusted – The Company assesses the impact of certain items when discussing Income (loss) from operations and Income (loss) from continuing operations and adjusts for items it believes are not reflective of operating activities in the periods. The impact of these adjustments are provided below.

First Quarter 2013

 

Loss from Operations

 

 

Pre-Tax

 

Tax Rate

 

After-Tax

 

 

EPS*

Sale of Roadbuilding

$

(3.4)

 

$

(6.1)

 

**

$

(3.9)

 

$

(0.03)

MHPS Restructuring

 

(2.7)

 

 

(2.7)

 

**

 

(1.9)

 

 

(0.02)

Total Effect

$

(6.1)

 

$

(8.8)

 

 

$

(5.8)

 

 $

(0.05)

* Based on weighted average diluted shares of 116.1M

** Based on a jurisdictional blend

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 below) less Cash and cash equivalents for the previous five quarters. Debt is calculated using the Consolidated Balance Sheet amounts for Notes payable and current portion of long-term debt plus Long-term debt, less current portion. 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. Total Terex Corporation stockholders’ equity is adjusted to include redeemable non-controlling interest as this item is deemed to be temporary equity and therefore should be included in the denominator of the ROIC ratio. 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.

   

Mar '14

 

Dec '13

 

Sep '13

 

Jun '13

 

Mar '13

 

Provision for (benefit from) income taxes

 

$

11.5

 

$

22.3

 

$

22.8

 

$

27.7

     

Divided by: Income (loss) before income taxes

 

 

43.0

 

 

106.0

 

 

106.6

 

 

46.4

     

Effective tax rate

   

26.7%

   

21.0%

   

21.4%

   

59.7%

     

 

                             

Income (loss) from operations as adjusted

 

$

76.3

 

$

131.5

 

$

139.4

 

$

83.8

     

Multiplied by: 1 minus Effective tax rate

 

 

73.3%

 

 

79.0%

 

 

78.6%

 

 

40.3%

     

Adjusted net operating income (loss) after tax

 

$

55.9

 

$

103.9

 

$

109.6

 

$

33.8

     

 

                             

Debt (as defined above)

 

$

2,055.9

 

$

1,976.7

 

$

1,905.9

 

$

1,870.4

 

$

2,082.5

Less: Cash and cash equivalents

 

(390.5)

 

 

(408.1)

 

 

(370.6)

 

 

(548.2)

 

 

(729.7)

Debt less Cash and cash equivalents

 

$

1,665.4

 

$

1,568.6

 

$

1,535.3

 

$

1,322.2

 

$

1,352.8

 

 

                         

Total Terex Corporation stockholders’ equity as adjusted

 

$

2,012.0

 

$

2,092.4

 

$

2,002.2

 

$

2,042.7

 

$

2,053.8

 

 

                         

Debt less Cash and cash equivalents plus Total Terex Corporation stockholders’ equity as adjusted

 

$

3,677.4

 

$

3,661.0

 

$

3,537.5

 

$

3,364.9

 

$

3,406.6

                               
                               

March 31, 2014 ROIC

 

 

8.6%

                       

Adjusted net operating income (loss) after tax (last 4 quarters)

 

$

303.2

                       

Average Debt less Cash and cash equivalents plus Total Terex Corporation stockholders’ equity as adjusted (5 quarters)

 

$

3,529.5

                       
                               
                     
           
 

Mar '14

Dec '13

Sep '13

Jun '13

Mar '13

 

Reconciliation of income (loss) from operations:

                               

Income (loss) from operations as reported

 

$

75.0

 

$

131.4

 

$

138.6

 

$

83.5

     

(Income) loss from operations for TFS

 

 

1.3

 

 

0.1

 

 

0.8

 

 

0.3

     

Income (loss) from operations as adjusted

 

$

76.3

 

$

131.5

 

$

139.4

 

$

83.8

     

 

                             

Reconciliation of Terex Corporation stockholders’ equity:

                     

Terex Corporation stockholders’ equity as reported

 

$

2,183.2

 

$

2,190.1

 

$

2,094.2

 

$

1,955.8

 

$

1,957.5

TFS assets

   

(171.2)

   

(151.6)

   

(149.8)

   

(139.7)

   

(147.5)

Redeemable noncontrolling interest

 

 

 

 

53.9

 

 

57.8

 

 

226.6

 

 

243.8

Terex Corporation stockholders’ equity as adjusted

 

$

2,012.0

 

$

2,092.4

 

$

2,002.2

 

$

2,042.7

 

$

2,053.8

Trailing Three Month Annualized Net Sales is calculated using the net sales for the quarter multiplied by four.

   

Three months ended

   

March 31,

   

2014

 

2013

First Quarter Net Sales

 

$

1,654.6

 

$

1,653.7

   

x

4

 

x

4

Trailing Three Month Annualized Net Sales

 

$

6,618.4

 

$

6,614.8

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:

WORKING CAPITAL

                 
   

Mar '14

 

Dec '13

 

Mar '13

Inventories

 

$

1,788.2

 

$

1,613.2

 

$

1,627.1

Trade Receivables

   

1,141.4

   

1,176.8

   

1,088.9

Less: Trade Accounts Payable

   

(753.5)

   

(689.1)

   

(665.8)

Less: Customer Advances

   

(347.5)

   

(302.1)

   

(350.5)

Total Working Capital

 

$

1,828.6

 

$

1,798.8

 

$

1,699.7

Terex Corporation

200 Nyala Farm Road, Westport, Connecticut 06880

Telephone: (203) 222-7170, Fax: (203) 222-7976, www.terex.com

 

<< News / Press Releases