Terex Experiences First Quarter 2023 Outcomes

• Gross sales of $1.2 billion increased 23% year-over-year, 27% on FX just foundation
• Complete backlog remained stable at $4.1 billion
• Profits from operations of $148 million, up 98% year-over-year
• Working income margin of 12.0% improved 460bps year-over-year
• EPS of $1.60 extra than doubled year-over-year
• Elevating fleshy-year 2023 EPS outlook to a vary of $5.60 to $6.00

, /PRNewswire/ — Terex Company (NYSE: TEX) at the unique time announced its outcomes for the first quarter 2023.

CEO Commentary

“We entered 2023 with important momentum as we continued to successfully enact against our boost strategy amidst elevated macroeconomic volatility and lingering provide chain constraints,” mentioned Terex Chairman and Chief Executive Officer John L. Garrison, Jr. “I would bask in to thank our team individuals for their dedication to our Zero Anguish security tradition and their efforts in serving our customers and dealers. We delivered stable first quarter outcomes, with gross sales rising 23%, operating margin growth of 460bps, and EPS extra than doubling over the prior year. We are raising our fleshy-year EPS outlook because this spectacular efficiency, stable query for our merchandise and a healthy backlog of $4.1 billion.”

“We also continued to make investments in unusual technologies and merchandise across our industry, and are gratified with our most long-established enhancements that toughen sustainability and wait on decrease GHG emissions with electrical and hybrid options for our customers. Everywhere in the quarter we showcased our expanded portfolio of merchandise and solutions at various alternate exhibits, highlighting how we wait on our customers unbiased their tools safely and profitably, whereas also supporting their sustainability dreams and reducing their total label of possession.”

First Quarter Operational and Financial Highlights

• Gain gross sales of $1.2 billion increased 23.3%, up from $1.0 billion in the first quarter of 2022. The boost used to be basically driven by larger volumes and query for our merchandise and improved label realization important to mitigate rising charges across all segments, which used to be partially offset by a $42 million unfavorable affect from adjustments in a ways off places trade rates.
• Profits from operations of $147.7 million, or 12.0% of catch gross sales improved from $74.5 million, or 7.4% of catch gross sales the prior year. The year-over-year boost of $73.2 million used to be driven by incremental margin accomplished on larger gross sales quantity, label realization and favorable product mix, which used to be partially offset by label increases and the unfavorable affect of a ways off places trade.
• Profits from continuing operations used to be $109.9 million, or $1.60 per share, in comparison with $52.3 million, or $0.74 per share, in the first quarter of 2022. EPS used to be up 116.2% year-over-year.

Business Phase Overview

Materials Processing

• Gain gross sales of $553.8 million had been up 22.3% or $101.1 million year-over-year, basically as a consequence of stable query for our merchandise across extra than one businesses and rate realization important to mitigate rising charges. Other than the affect of a ways off places trade rates of roughly $27 million, catch gross sales increased 28.4% year-over-year.
• Profits from operations increased to $85.3 million or 15.4% of catch gross sales, in comparison with $64.5 million, or 14.2% of catch gross sales, in the prior year. The boost used to be driven by incremental margin accomplished on larger gross sales volumes and favorable product mix, which used to be partially offset by label increases and the unfavorable affect of a ways off places trade.

Aerial Work Platforms

• Gain gross sales of $685.9 million had been up 24.4% or $134.4 million year-over-year. The boost used to be basically as a consequence of larger query driven by snappily change, terminate-market boost and rate realization important to mitigate rising charges. Other than the affect of a ways off places trade rates of roughly $15 million, catch gross sales increased 27.1% year-over-year.
• Profits from operations increased to $83.1 million or 12.1% of catch gross sales, in comparison with $32.5 million, or 5.9% of catch gross sales in the prior year. The boost used to be driven by incremental margin on larger gross sales quantity, label reductions, favorable manufacturing efficiencies and mix, label realization to mitigate inflation and used to be partially offset by unfavorable outcomes of a ways off places trade fee adjustments.

Steady Steadiness Sheet and Liquidity

• As of March 31, 2023, the Company had liquidity (money and availability under our revolving line of credit rating) of $677.2 million and catch leverage of 1.0x.
• Terex deployed approximately $30 million for capital expenditures and investments throughout the first quarter of 2023.
• Everywhere in the three months ended March 31, 2023, Terex paid $10.2 million in dividends, a 15% boost and performed $3.2 million in share repurchases. As properly as, the firm repurchased $14.3 million shares in April.

CFO Commentary

Julie Beck, Senior Vice President and Chief Financial Officer, mentioned “The Company has a stable balance sheet with low leverage and colossal liquidity to toughen its boost initiatives. We are gratified with our bettering gross sales and margin growth trajectory, driven by stable query and supported by our pricing actions and disciplined expense management. In consequence, we are raising our fleshy year gross sales, margin, EPS and free money hunch along with the hunch outlook ranges.”

2023
 Outlook
(in hundreds and hundreds, except per share files)

Non-GAAP Measures and Other Objects

Outcomes of operations mirror continuing operations. All per share quantities are on an awfully diluted foundation.  A total overview of the quarterly financial efficiency is contained in the presentation that can accompany the Company’s earnings conference call.

On this press unlock, Terex refers to various GAAP (U.S. customarily celebrated accounting tips) and non-GAAP financial measures. These non-GAAP measures could per chance per chance now now not be linked to in an analogous vogue titled measures being disclosed by other firms. Terex believes that this non-GAAP files is priceless to understanding its operating outcomes and the continuing efficiency of its underlying businesses. 

The Thesaurus at the top of this press unlock contains extra small print about this field.

Convention call

The Company has scheduled a conference call to learn the financial outcomes on Tuesday, May per chance per chance per chance additionally merely 2, 2023 foundation at 8:30 a.m. ET.  John L. Garrison, Jr., Chairman and CEO, and Julie Beck, Senior Vice President and Chief Financial Officer, will host the call. A simultaneous webcast of this call is also accessed at https://shoppers.terex.com. Contributors are impressed  to internet admission to the call 10 minutes ahead of the starting up time. The call will also be archived in the Tournament Archive at https://shoppers.terex.com.

Forward-Looking Statements

Determined files in this press unlock entails forward-attempting statements (throughout the that manner of Portion 27A of the Securities Act of 1933, Portion 21E of the Securities Alternate Act of 1934 (the “Alternate Act”) and the Private Securities Litigation Reform Act of 1995) relating to future events or our future financial efficiency that involve obvious contingencies and uncertainties, including those discussed in our Annual Characterize on Make 10-K for the year ended December 31, 2022, and subsequent reports we file with the U.S. Securities and Alternate Price every so frequently, in the sections entitled “Management’s Discussion and Evaluation of Financial Situation and Outcomes of Operations – Contingencies and Uncertainties.”  As properly as, when integrated in this press unlock the phrases “could per chance,” “expects,” “will accept as true with to,” “intends,” “anticipates,” “believes,” “plans,” “projects,” “estimates,” “will” and the negatives thereof and analogous or linked expressions are supposed to identify forward-attempting statements.  Nonetheless, the absence of these phrases would now not imply that the commentary is now now not forward-attempting.  We accept as true with based mostly completely mostly these forward-attempting statements on most long-established expectations and projections about future events.  These statements are now now not ensures of future efficiency.  Such statements are inherently field to a diversity of risks and uncertainties that could per chance trigger precise outcomes to differ materially from those reflected in such forward-attempting statements.  Such risks and uncertainties, a lot of that are beyond our control, consist of, among others:

• adjustments in the provision and rate of obvious offers and parts, which can terminate in extra provide chain disruptions;
• consolidation within our customer immoral and suppliers;
• our operations are field to a great deal of doable risks that arise from operating a multinational industry, including compliance with altering regulatory environments and political and economic instability;
• a cloth disruption to one in all our important facilities;
• our industry is sensitive to authorities spending;
• our industry is extremely aggressive and field to pricing strain;
• our capability to successfully implement our strategy and the actual outcomes derived from such strategy;
• our capability to mix received businesses;
• our consolidated financial outcomes are reported in U.S. dollars whereas obvious assets and other reported items are denominated in the currencies of alternative countries, rising currency trade and translation danger;
• our industry is tormented by the cyclical nature of markets we help;
• our prefer to follow restrictive covenants contained in our debt agreements;
• our capability to generate ample money hunch along with the hunch to provider our debt responsibilities and efficiency our industry;
• our capability to internet admission to the capital markets to steal funds and present liquidity;
• the financial situation of customers and their continued internet admission to to capital;
• publicity from providing credit rating toughen for just a few of our customers;
• we could per chance journey losses in scheme over recorded reserves;
• our capability to device, originate, have interaction and withhold team individuals;
• possible work stoppages and other labor issues;
• increased cybersecurity threats and extra refined computer crime;
• adjustments in import/export regulatory regimes, imposition of tariffs, escalation of worldwide alternate conflicts and unfairly traded imports, notably from China, could per chance proceed to negatively affect our industry;
• compliance with environmental guidelines would be costly and failure to fulfill environmental, social and governance (“ESG”) expectations or standards or carry out our ESG dreams could per chance adversely affect our industry;
• litigation, product licensed responsibility claims and other liabilities;
• our compliance with america (“U.S.”) Foreign Sad Practices Act and linked worldwide anti-corruption licensed pointers;
• increased regulatory focal point on privateness and files security disorders and rising licensed pointers;
• our capability to follow an injunction and linked responsibilities imposed by the U.S. Securities and Alternate Price (“SEC”); and
• other components.

Precise events or our precise future outcomes could per chance differ materially from any forward-attempting commentary as a consequence of these and other risks, uncertainties and cloth components.  The forward-attempting statements contained herein talk only as of the date of this press unlock.  We expressly disclaim any obligation or endeavor to unlock publicly any updates or revisions to any forward-attempting commentary contained in this press unlock to reflect any trade in our expectations with regard thereto or any trade in events, conditions or circumstances on which such a commentary depends mostly.

About Terex

Terex Company is a world producer of offers processing machinery and aerial work platforms. We invent, manufacture and toughen merchandise extinct in constructing, repairs, manufacturing, energy, recycling, minerals and offers management purposes.  Determined Terex merchandise and solutions allow customers to decrease their affect on the environment including electrical and hybrid offerings that raise mute and emission-free efficiency, merchandise that toughen renewable energy, and merchandise that relief in the restoration of priceless offers from various kinds of waste. Our merchandise are manufactured in North The US, Europe, Australia and Asia and sold worldwide.  We have interaction with customers thru all phases of the product existence cycle, from initial specification to parts and repair toughen.

Contact Data


Paretosh Misra

Head of Investor Relations

Cell phone: 203-604-3977 

E mail: paretosh.misra@terex.com

GLOSSARY

Non-GAAP Measures Definitions

So as to manufacture shoppers with extra files relating to the Company’s outcomes, Terex refers to various GAAP (U.S. customarily celebrated accounting tips) and non-GAAP financial measures which management believes offers priceless files to shoppers.  These non-GAAP measures could per chance per chance now now not be linked to in an analogous vogue titled measures being disclosed by other firms.  As properly as, the Company believes that non-GAAP financial measures will accept as true with to be thought to be besides to, and now now not in lieu of, GAAP financial measures.  Terex believes that this non-GAAP files is priceless to understanding its operating outcomes and the continuing efficiency of its underlying businesses.  Management of Terex makes employ of every GAAP and non-GAAP financial measures to place inner budgets and targets and to evaluate the Company’s financial efficiency against such budgets and targets.

The quantities described under are unaudited, are reported in hundreds and hundreds of U.S. dollars (except share files and percentages), and are as of or for the period ended March 31, 2023, unless otherwise indicated.

2023 Outlook

The Company’s 2023 outlook for earnings per share is a non-GAAP financial measure since it excludes the affect of doable future acquisitions, divestitures, restructuring, and other uncommon items. The Company is now now not in a living to reconcile this forward-attempting non-GAAP financial measure to its most straight away linked forward-attempting GAAP financial measures with out unreasonable efforts for the explanation that Company is unable to foretell with an cheap diploma of easy job the actual timing and affect of such items. The unavailable files also can accept as true with a important affect on the Company’s fleshy-year 2023 GAAP financial outcomes. This forward attempting files offers steerage to shoppers relating to the Company’s EPS expectations as adversarial to uncommon items that the Company would now not factor in is reflective of its ongoing operations.

Free Money Waft

The Company calculates a non-GAAP measure of free money hunch along with the hunch.  The Company defines free money hunch along with the hunch as Gain money equipped by (extinct in) operating activities much less Capital expenditures, catch of proceeds from sale of capital assets.  The Company believes that this measure of free money hunch along with the hunch offers management and shoppers extra priceless files on money generation or employ in our significant operations. The following table reconciles Gain money equipped by (extinct in) operating activities to free money hunch along with the hunch (in hundreds and hundreds):

Working Capital

Working Capital is calculated using the Condensed Consolidated Steadiness Sheet quantities for Replace receivables (catch of allowance) plus Inventories, much less Replace accounts payable and Customer advances.  The Company views excessive working capital as an inefficient employ of assets, and seeks to decrease the stage of investment with out adversely impacting the continuing operations of the industry. For the sessions under, working capital used to be:

Trailing Three Months Annualized Gain Gross sales is calculated using the internet gross sales for the quarter multiplied by four.

The ratio is calculated by dividing working capital by trailing three months annualized catch gross sales. The Company believes this measures its handy resource employ effectivity.

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SOURCE Terex Company