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.
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 CorporationTom Gelston, 203-222-5943Vice President,
Investor Relationsthomas.gelston@terex.com
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