Terex announces fourth-quarter and full-year 2020 results
By Rock to Road
By Rock to Road
Terex released its fourth-quarter and full-year 2020 results. Here is the report.
In the fourth quarter of 2019, the reported income from continuing operations was $18.5 million, or $0.26 per share, on net sales of $885.0 million. Income from continuing operations, as adjusted, for the fourth quarter of 2019 was $25.7 million, or $0.36 per share. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.
For the full year 2020, Terex reported income from continuing operations of $9.0 million, or $0.13 per share, on net sales of $3.1 billion compared with income from continuing operations of $209.7 million, or $2.92 per share, on net sales of $4.4 billion for the full year 2019. Income from continuing operations, as adjusted, for the full year 2019 was $233.5 million, or $3.25 per share.
AWP’s fourth-quarter 2020 results reflected modestly improving customer sentiment in the segment’s largest markets, North America and Europe. Restructuring charges impacted AWP operating margins in the quarter. Materials Processing demonstrated strong operational performance by delivering operating margins of 15 per cent in the quarter, while sales were down 3 per cent.
“Despite the challenges associated with managing through the pandemic, Terex delivered another quarter of improving operating performance” said John Garrison, Chairman and Chief Executive Officer. “I would like to thank the Terex team members, dealers and suppliers throughout the world who have helped us safely maintain our operations and serve customers. Because of their contributions, Terex entered 2021 well positioned for growth. Terex will continue to deliver to our customers innovative products and solutions that yield superior productivity and return on investment.”
Additionally, the Company announced that its Board of Directors had reinstated its quarterly dividend for 2021. The Board of Directors has declared a quarterly dividend of $0.12 per share. The dividend is to be paid on March 19, 2021 to all stockholders of record as of the close of business on March 5, 2021.
John Sheehan, Senior Vice President and Chief Financial Officer, said, “Through aggressive working capital management, we were able to generate over $140 million of free cash flow in 2020. Our disciplined liquidity management supported Terex entering 2021 in a very strong financial position, with $670 million of cash and over $1.1 billion of total available liquidity. We will use this liquidity to fund our growth opportunities. Our strong balance sheet and expected 2021 free cash flow generation of approximately $100 million allowed our Board of Directors to reinstate our quarterly dividend for 2021.”
Garrison continued, “Our entire organization is focused on delivering margin expansion in 2021 by realizing the benefits of our previously announced cost actions along with improved customer demand and production volumes. Renewed optimism and improved customer sentiment will drive customer demand for Terex’s products and services. As a result, our expectations are that 2021 sales will be approximately $3.45 billion, and EPS will be approximately $1.95 to $2.35.”
Garrison concluded, “We are confident that the Company is well positioned with its operating strategy to drive improved execution, profitability, innovation and growth in 2021.”