Terex Corp. (NYSE:TEX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2.78%.
Terex Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 20.69% to $0.23 in the quarter versus EPS of $0.29 in the year-earlier quarter.
Revenue: Decreased 5.3% to $1.72 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Terex Corp. reported adjusted EPS income of $0.23 per share. By that measure, the company missed the mean analyst estimate of $0.28. It missed the average revenue estimate of $1.83 billion.
Quoting Management: “Our business performance was mixed in the first quarter,” commented Ron DeFeo, Terex Chairman and Chief Executive Officer. “We are encouraged by the performance of our Aerial Work Platform business, which continues to reflect the strong end-market dynamics of the rental channel, particularly in North America. Our Cranes and Materials Processing businesses also positively contributed to our results and performed generally as expected. However, we have seen significant global revenue shortfalls in our MHPS business, with particular weakness in Europe and India. Our Construction business is also reflecting the challenges of a less certain customer base in Europe. As a result, we are initiating additional actions in the second quarter to further adjust the cost structure of the MHPS and Construction organizations to better reflect the reduced demand for certain of their products. We anticipate that we will be incurring restructuring and related charges of approximately $30-$50 million in the MHPS segment in the second quarter, and expect to realize a similar amount in savings over the next 12 to 24 months.”
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