Terex Corp. announced income from continuing operations of $87.8 million, or $0.76 per share, for the second quarter of 2014. This compared to income from continuing operations of $20.4 million, or $0.17 per share, for the second quarter of 2013. Excluding the impact of certain items totaling $54.4 million, or $0.47 per share, income from continuing operations as adjusted in the second quarter of 2013 was $74.8 million, or $0.64 per share.
Net sales were $2,055.1 million in the second quarter of 2014, 10.4 percent higher than net sales of $1,861.5 million in the second quarter of 2013. Income from operations was $160.9 million in the second quarter of 2014, an increase of $77.4 million when compared to income from operations of $83.5 million in the second quarter of 2013. Excluding the impact of certain items totaling $64.9 million, income from operations as adjusted in the second quarter of 2013 was $148.4 million.
“Our results for the second quarter and first six months of the year were mixed both from a business and geographical perspective,” commented Ron DeFeo, Terex chairman and chief executive officer. “Our Aerial Work Platforms (AWP) segment had a strong quarter but margins were slightly lower than a year ago due to product mix and planned investments in new product development and manufacturing footprint. We expect this dynamic to continue through the remainder of the year, although on increasing sales versus the prior year. Our Cranes segment is making progress, as bookings were roughly equal to net sales during the quarter and the order entry run rate was 12 percent above the prior year level on a year to date basis. Our Construction and Material Handling & Port Solutions (MHPS) segments both delivered quarters roughly in-line with our expectations, while the Materials Processing (MP) segment had a more challenging quarter from a sales perspective than originally anticipated. From a geographical perspective, Western Europe and North America were the growth drivers with increases of 35 percent and 15 percent respectively, with the rest of world somewhat offsetting these strengths.”
“The company’s overall outlook for 2014 remains unchanged,” DeFeo added. “We expect continued strength from our AWP segment and improvement from our Cranes and MHPS segments to drive improved performance for the second half of 2014 compared with the first six months. While we see a slightly weaker end-market than we originally anticipated, from an EPS perspective, the impact on operating earnings is expected to be somewhat offset by both a lower effective tax rate and a lower anticipated share count. We reiterate our annual outlook for earnings per share of between $2.50 and $2.80, excluding restructuring and other unusual items, although now on net sales of between $7.3 billion and $7.5 billion.”
“During the quarter we completed the divestiture of our truck business for $160 million, reporting a gain on discontinued operations of $51.5 million or $0.45 per share.” commented Kevin Bradley, Terex senior vice president and chief financial officer. “We used the proceeds from the sale to pay down a portion of our revolving credit line. We also repurchased $21 million of our shares within the quarter for a cumulative total of $84 million since the inception of the program in December 2013.”