 Terex's Genie AWP-30S Super Series aerial work platform |
Terex Corporation is upbeat about its last quarter, despite falling revenues.
The company reported income from continuing operations of USD85.2 million for the second quarter of 2015- down from USD87.8 million the same time last year.
Excluding the impact of currency, net sales declined approximately 2.0%.
However, Ron DeFeo, Terex chairman and chief executive officer, notes that Terex improved its balance sheet and borrowing efficiency with the retirement of its convertible senior subordinated notes and the repricing of its European term loan. "We also generated USD76.3 million in free cash flow in the quarter."
DeFeo describes the second quarter as "a solid quarter in terms of financial performance".
"Our AWP (aerial work platform) segment operating margin returned to the mid-teens, as anticipated, benefiting from increased productivity and seasonally strong sales. We are encouraged by our AWP backlog which is higher than the prior-year level and expect improved performance for this segment in the second half of 2015 as compared to the second half of 2014. We are seeing pricing pressure in the marketplace, but to date that has been mostly offset by reductions in material input cost.
"Our Materials Processing business had a good quarter, expanding operating margins despite lower sales. MHPS results were slightly below our expectations for the quarter, but a strong second half performance is still anticipated.
"Our Cranes segment performed generally in line with our expectations, but with a weaker product mix. The overall market for cranes remains challenging and we are not anticipating any near-term improvements.
"The Construction segment was slightly profitable, with pressure on operating results continuing to come from the European and Indian compact construction and material scrap handling businesses."
DeFeo says in the light of the Q2 performance, "we now believe we will be in the low end of our previously announced earnings and revenue guidance for the full year 2015".
He anticipates net sales of between USD6.1 billion and USD6.4 billion for the year.