John L. Garrison

Terex Corporation has announced its fourth quarter results, showing a USD30.6 million loss on net sales of USD1.2 billion. The fourth quarter and full year 2018 results include a one-time, non-cash charge of USD67 million related to the annuitisation of its US pension. The results also include a one-time USD50.4 million charge associated with US tax law changes.

"Overall, our global team executed well in the fourth quarter, completing a strong year for Terex," says John L. Garrison, Terex chairman and CEO. "In 2018, we grew sales by 18%, improved operating margins, and significantly increased EPS. AWP (aerial work platforms) grew sales 24% for the year and expanded operating margins by 200 basis points. MP (materials processing) had an excellent year, growing sales by 17% and increasing full year operating margin to 13.3%, up 160 basis points. Cranes continued to make operational improvements and returned to profitability on an adjusted basis in the fourth quarter."

Garrison says Terex continued to implement the Focus, Simplify and Execute to Win elements of its strategy and made significant progress in its Commercial Excellence, Lifecycle Solutions, and Strategic Sourcing priority areas. "We also continued to follow our disciplined capital allocation strategy, investing to improve and grow our businesses, and returning capital to shareholders through higher dividends and by repurchasing approximately 14% of our outstanding shares in 2018.

"The sale of the Demag Mobile Crane business and the decision to exit the mobile crane product lines manufactured at our Oklahoma City facility will dramatically improve Terex's operating results by focusing the portfolio on our high-performing businesses," he says.

Garrison notes that Terex has entered 2019 with 29% higher backlog, "and we expect our global markets to remain strong".