Terex posts loss in Q1 2017 as sales slip
Terex Corporation see its results slip, with a $60.3m loss in Q1 2017, but is bullish about the impact of its ongoing consolidation
Terex has announced a Q1 2017 loss from continuing operations of $60m on its net sales of $1.0bn, down again on its loss of $22m on net sales of $1.1bn in Q1 2016, amid ongoing efforts to streamline the business.
Terex president and CEO John Garrison, chose to highlight the positive: “We are encouraged by our start to 2017. Our material processing segment had an excellent first quarter, growing sales and operating margin.
“Looking forward, we see positive momentum in our backlog, which grew year-over-year for the first time in eight quarters. Overall backlog grew by 10%, rising in each of our segments.
He added that sales in the cranes and aerial work platforms segments were down consistent with expectations for the first half of 2017, while operating margins were compressed by the lower sales and the strength of the US dollar.
Garrison continued: “We made substantial progress executing our strategy to focus and simplify the Company, and build capabilities in key commercial and operational areas.
“In January we completed the MHPS [material handling and port solutions] sale. We also closed the sale of our loader backhoe business based in Coventry, England, and announced the sale of our India loader backhoe business.”
Over the last two years, Terex has sold off all of its earthmoving products to various manufacturers and now serves only three segments: aerial work platforms (Genie), cranes (Terex and Demag) and materials processing (Powerscreen, Finley, Evoquip).
Terex is also consolidating its share, and Garrison noted that Terex also repurchased approximately 6.5 million shares of Terex stock during the quarter through our previously announced programmes.
“Our cranes restructuring program is making progress, with the closing of our Jinan facility, and we continue to address structural costs. The commercial excellence program is providing greater visibility to sales opportunities and helping to improve our bookings and backlog.”
In the GCC, January also saw Kuwait-based Integrated Logistics Company take delivery of 31 Terex cranes, including a new Demag CC3800-1 crawler crane, 20 Terex AC 100/4L all-terrain cranes and 10 Terex Explorer 5600 all-terrain cranes, in a major expansion of its fleet.