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Terex Announces Fourth Quarter And Full Year 2012 Results And Provides 2013 Outlook

Stocks in this article: TEX

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 diversified global manufacturer 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, quarrying, manufacturing, mining, shipping, transportation, refining, energy and utility industries. Terex offers financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. Terex uses its website to make information available to its investors and the market at www.terex.com.

 

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(unaudited)

(in millions, except per share data)

 
        Three Months

Ended December 31,

      Twelve Months

Ended December 31,

2012       2011 2012       2011
Net sales $ 1,695.5 $ 1,956.6 $ 7,348.4 $ 6,504.6
Cost of goods sold   (1,387.9 )   (1,654.0 )   (5,902.8 )   (5,544.3 )
Gross profit 307.6 302.6 1,445.6 960.3
Selling, general and administrative expenses   (279.7 )   (271.5 )   (1,047.0 )   (879.1 )
Income (loss) from operations 27.9 31.1 398.6 81.2
Other income (expense)
Interest income 2.4 6.0 8.8 14.3
Interest expense (34.6 ) (41.7 ) (164.6 ) (134.9 )
Loss on early extinguishment of debt (30.7 ) - (83.0 ) (7.7 )
Amortization of debt issuance costs (2.3 ) (3.0 ) (9.6 ) (8.1 )
Other income (expense) – net   0.8     (1.9 )   5.4     139.7  
Income (loss) from continuing operations before income taxes (36.5 ) (9.5 )

155.6

84.5

(Provision for) benefit from income taxes   7.5     6.1     (54.2 )   (50.4 )
Income (loss) from continuing operations (29.0 ) (3.4 ) 101.4 34.1
Income (loss) from discontinued operations – net of tax (0.7 ) -

1.8

5.8

Gain (loss) on disposition of discontinued operations- net of tax   (1.9 )   1.3     0.4     0.8  
Net income (loss) (31.6 ) (2.1 ) 103.6 40.7
Net (income) loss attributable to noncontrolling interest   (1.7 )   (0.8 )   2.2     4.5  
Net income (loss) attributable to Terex Corporation $ (33.3 ) $ (2.9 ) $ 105.8   $ 45.2  
Amounts attributable to Terex Corporation common stockholders:
Income (loss) from continuing operations $ (30.7 ) $ (4.2 ) $ 103.6 $ 38.6
Income (loss) from discontinued operations – net of tax (0.7 ) - 1.8 5.8
Gain (loss) on disposition of discontinued operations – net of tax   (1.9 )   1.3     0.4     0.8  
Net income (loss) attributable to Terex Corporation $ (33.3 ) $ (2.9 ) $ 105.8   $ 45.2  
Basic Earnings (loss) Per Share Attributable to Terex Corporation Common Stockholders:
Income (loss) from continuing operations $ (0.28 ) $ (0.04 ) $ 0.94 $ 0.35
Income (loss) from discontinued operations – net of tax - -

0.02

0.05

Gain (loss) on disposition of discontinued operations – net of tax   (0.02 )   0.01     -     0.01  
Net income (loss) attributable to Terex Corporation $ (0.30 ) $ (0.03 ) $ 0.96   $ 0.41  
Diluted Earnings (loss) Per Share Attributable to Terex Corporation Common Stockholders:
Income (loss) from continuing operations $ (0.28 ) $ (0.04 ) $ 0.91 $ 0.35
Income (loss) from discontinued operations – net of tax - -

0.02

0.05

Gain (loss) on disposition of discontinued operations – net of tax   (0.02 )   0.01     -     0.01  
Net income (loss) attributable to Terex Corporation $ (0.30 ) $ (0.03 ) $ 0.93   $ 0.41  
Weighted average number of shares outstanding in per share calculation
Basic   110.5     109.7     110.3     109.5  
Diluted   110.5     109.7     113.9     110.7  
 
 

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited)

(in millions, except par value)

 
        December 31,

2012

     

December 31,

2011

Assets
Current assets
Cash and cash equivalents $ 678.0 $ 774.1

Trade receivables (net of allowance of $38.8 and $42.5 at December 31, 2012 and

    2011, respectively)

1,077.7 1,178.1
Inventories 1,715.6 1,758.1
Other current assets   326.1     342.9  
Total current assets 3,797.4 4,053.2
Non-current assets
Property, plant and equipment – net 813.3 835.5
Goodwill 1,245.3 1,232.9
Intangible assets – net 474.4 519.5
Other assets   418.7     422.3  
Total assets $ 6,749.1   $ 7,063.4  
 
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable and current portion of long-term debt $ 83.8 $ 77.0
Trade accounts payable 635.5 764.6
Accrued compensation and benefits 226.2 222.3
Accrued warranties and product liability 97.6 111.0
Customer advances 312.9 223.2
Income taxes payable 87.7 185.2
Other current liabilities   272.3     307.6  
Total current liabilities 1,716.0 1,890.9
Non-current liabilities
Long-term debt, less current portion 2,014.9 2,223.4
Retirement plans 430.7 344.6
Other non-current liabilities   309.3     416.1  
Total liabilities   4,470.9     4,875.0  
 
Commitments and contingencies
Redeemable noncontrolling interest 246.9 -
Stockholders’ equity

Common stock, $.01 par value – authorized 300.0 shares; issued 122.9 and 121.9

    shares at December 31, 2012 and 2011, respectively

1.2 1.2
Additional paid-in capital 1,260.7 1,271.8
Retained earnings 1,467.7 1,361.9
Accumulated other comprehensive (loss) income (124.1 ) (125.5 )

Less cost of shares of common stock in treasury – 13.0 and 13.1 shares at December

    31, 2012 and 2011, respectively

  (597.8 )   (599.1 )
Total Terex Corporation stockholders’ equity 2,007.7 1,910.3
Noncontrolling interest   23.6     278.1  
Total stockholders’ equity   2,031.3     2,188.4  
Total liabilities, redeemable noncontrolling interest and stockholders’ equity $ 6,749.1   $ 7,063.4  
 
 

TEREX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited) (in millions)

 
        Twelve Months

Ended December 31,

2012       2011
Operating Activities of Continuing Operations
Net income $ 103.6 $ 40.7

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

     activities of continuing operations:

Discontinued operations (2.2 ) (6.6 )
Depreciation and amortization 153.0 126.6
Deferred taxes (25.2 ) (2.0 )
Gain on sale of assets (5.9 ) (173.5 )
Loss on early extinguishment of debt 99.0 7.7
Stock-based compensation expense 29.1 23.4
Changes in operating assets and liabilities (net of effects of acquisitions and divestitures):
Trade receivables 122.5 (181.2 )
Inventories (55.0 ) (26.1 )
Trade accounts payable (126.3 ) 64.6
Other, net   (0.3 )   149.1  
Net cash provided by (used in) operating activities of continuing operations   292.3     22.7  
Investing Activities of Continuing Operations
Capital expenditures (82.5 ) (79.1 )
Acquisitions of businesses, net of cash acquired (3.4 ) (1,035.2 )
Other investments (24.1 ) (16.1 )
Proceeds from disposition of discontinued operations 3.5 0.5
Proceeds from sale of assets 34.6 539.6
Other investing activities, net   (4.4 )   (2.2 )
Net cash (used in) provided by investing activities of continuing operations   (76.3 )   (592.5 )
Financing Activities of Continuing Operations
Repayments of debt (1,533.0 ) (447.8 )
Proceeds from issuance of debt 1,234.3 926.7
Payment of debt issuance costs (20.7 ) (26.6 )
Purchase of noncontrolling interest (3.5 ) (6.3 )
Distributions to noncontrolling interest (4.9 ) -
Other financing activities, net   4.5     4.6  
Net cash provided by (used in) financing activities of continuing operations   (323.3 )   450.6  
Effect of Exchange Rate Changes on Cash and Cash Equivalents   11.2     (0.9 )
Net Increase (Decrease) in Cash and Cash Equivalents (96.1 ) (120.1 )
Cash and Cash Equivalents at Beginning of Period   774.1     894.2  
Cash and Cash Equivalents at End of Period $ 678.0   $ 774.1  
 
 

TEREX CORPORATION AND SUBSIDIARIES

SEGMENT RESULTS DISCLOSURE

(unaudited)

(in millions)

 
        Fourth Quarter     Year-to-Date
2012     2011 2012     2011
    % of

Net Sales

    % of

Net Sales

    % of

Net Sales

    % of

Net Sales

Consolidated  
Net sales $ 1,695.5   $ 1,956.6   $ 7,348.4   $ 6,504.6  
Gross profit 307.6 18.1 % 302.6 15.5 % 1,445.6 19.7 % 960.3 14.8 %
SG&A   279.7   16.5 %   271.5   13.9 %   1,047.0   14.2 %   879.1   13.5 %
Income from operations $ 27.9 1.6 % $ 31.1 1.6 % $ 398.6 5.4 % $ 81.2 1.2 %
 
AWP
Net sales $ 459.4   $ 437.4   $ 2,104.6   $ 1,750.0  
Gross profit 96.6 21.0 % 80.3 18.4 % 437.2 20.8 % 278.3 15.9 %
SG&A   54.0   11.8 %   54.1   12.4 %   209.5   10.0 %   192.0   11.0 %
Income from operations $ 42.6 9.3 % $ 26.2 6.0 % $ 227.7 10.8 % $ 86.3 4.9 %
 
Construction
Net sales $ 266.4   $ 409.0   $ 1,308.7   $ 1,505.6  
Gross profit 2.1 0.8 % 44.2 10.8 % 113.7 8.7 % 163.1 10.8 %
SG&A   47.0   17.6 %   47.0   11.5 %   157.3   12.0 %   181.5   12.1 %
Loss from operations $ (44.9 ) (16.9 %) $ (2.8 ) (0.7 %) $ (43.6 ) (3.3 %) $ (18.4 ) (1.2 %)
 
Cranes
Net sales $ 394.9   $ 435.3   $ 1,491.9   $ 1,543.0  
Gross profit 93.4 23.7 % 62.5 14.4 % 317.4 21.3 % 220.4 14.3 %
SG&A   47.7   12.1 %   48.5   11.1 %   174.0   11.7 %   194.7   12.6 %
Income from operations $ 45.7 11.6 % $ 14.0 3.2 % $ 143.4 9.6 % $ 25.7 1.7 %
 
MHPS
Net sales $ 439.6   $ 519.9   $ 1,840.3   $ 1,077.3  
Gross profit 77.4 17.6 % 77.0 14.8 % 406.9 22.1 % 142.8 13.3 %
SG&A   99.3   22.6 %   96.8   18.6 %   393.5   21.4 %   207.5   19.3 %
Income (loss) from operations $ (21.9 ) (5.0 %) $ (19.8 ) (3.8 %) $ 13.4 0.7 % $ (64.7 ) (6.0 %)
 
MP
Net sales $ 152.1   $ 170.8   $ 661.5   $ 682.8  
Gross profit 34.5 22.7 % 30.7 18.0 % 149.6 22.6 % 135.8 19.9 %
SG&A   18.3   12.0 %   17.0   10.0 %   74.3   11.2 %   76.3   11.2 %
Income from operations $ 16.2 10.7 % $ 13.7 8.0 % $ 75.3 11.4 % $ 59.5 8.7 %
 
Corporate/Eliminations
Net sales $ (16.9 ) $ (15.8 ) $ (58.6 ) $ (54.1 )
Gross profit 3.6 (21.3 %) 7.9 (50.0 %) 20.8 (35.5 %) 19.9 (36.8 %)
SG&A   13.4   (79.3 %)   8.1   (51.3 %)   38.4   (65.5 %)   27.1   (50.1 %)
Loss from operations $ (9.8 ) 58.0 % $ (0.2 ) 1.3 % $ (17.6 ) 30.0 % $ (7.2 ) 13.3 %
 

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.

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