Construction equipment maker Terex Corp. (TEX) reported Wednesday a profit for the first quarter that edged up from last year, aided by improved margins. However, adjusted earning per share from continuing operations significantly missed analysts' expectations, so did net sales. The company also maintained its earnings and revenues guidance for the full-year 2013.
"Our business performance was mixed in the first quarter. We are encouraged by the performance of our Aerial Work Platform (AWP) 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.," Chairman and CEO Ronald DeFeo said in a statement.
The Westport, Connecticut-based company reported net income of $23.9 million or $0.21 per share for the first quarter, higher than $23.0 million or $0.20 per share in the prior-year quarter.
Income from continuing operations was $20.9 million or $0.18 per share, compared to $20.5 million or $0.18 per share last year. Excluding items, adjusted income from continuing operations for the quarter was $26.7 million or $0.23 per share, compared to $32.8 million or $0.29 per share in the year-ago quarter.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the first quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 5.3 percent to $1.72 billion from $1.82 billion in the same quarter last year, and missed fourteen Wall Street analysts' consensus estimate of $1.83 billion.
Backlog for orders deliverable during the next twelve months was about $2.17 billion at March 31, 2013, an decline of 5.9 percent from March 31, 2012.
Operating margin for the quarter expanded 50 basis points to 4.0 percent from last year, with gross profit margin improving 80 basis points, offset by selling, general and administrative expense, as a percentage of sales, increasing 30 basis points from a year ago.
Provision for income taxes for the quarter nearly doubled to $15.3 million from $8.8 million in the year-ago quarter.
Looking ahead to fiscal 2013, the company continues to expect adjusted earnings in a range of $2.40 to $2.70 per share, on projected revenues between $7.9 billion and $8.3 billion.
Street is currently looking for full-year 2013 earnings of $2.62 per share on revenues of $8.04 billion.
"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," DeFeo added.
TEX closed Wednesday's regular trading session at $29.53, up $0.80 or 2.78% on a volume of 2.15 million shares.
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