Terex Q1 Sales Rise 39%, Net Income Jumps 78%

June 3, 2005 — Terex Corp., Westport, Conn., recently released first quarter financial results, announcing a net income of $30.3 million ($0.59 per share) in 2005 compared to $17 million ($0.34 per share) for the same period in 2004.

 

Excluding the impact of special items for the first quarter of 2005, net income was $30.8 million, or $0.60 per share, while there were no special items during the first quarter of 2004. Special items for the first quarter of 2005 included charges for investigation costs associated with the company's internal review and the restatement of its financial statements for the fiscal periods 2000, 2001, 2002, and 2003 as well as charges relating to the closure of certain Terex Utilities branches. Note: For the period ended March 31, 2005, the company is using an estimated tax rate of 35%, versus the 30.3% rate used for the first quarter of 2004.

 

Net sales increased to approximately $1.4 billion in the first quarter of 2005 — an increase of 38.8% from slightly more than $1 billion in the first quarter of 2004. Net debt (consisting of long-term debt, including current portion of long-term debt, less cash and cash equivalents) increased by $92 million from December 31, 2004 levels.

"We continue to be encouraged by current trends and our solid performance in the first quarter,” said Ronald M. DeFeo, Terex's chairman and CEO. Although the first quarter still reflects an imbalance between our input costs and our pricing to our customers, we are confident that we are doing the right things to improve this situation. We have taken pricing initiatives that should be more evident in the second quarter, and clearly the demand for our products is strong."

DeFeo indicated that improvement the company's working capital relative to sales as reflected in year-over-year period comparisons demonstrates a commitment to process improvement. "Given the seasonality of our business, we fully expected the first quarter to show a net use of working capital in anticipation of the seasonally strong second quarter,” he said. “However, compared to the same period last year, the Company's working capital levels are approximately three percentage points better as measured relative to sales, and should position Terex for another year of improved working capital to revenue ratio and debt reduction."

 

For more detailed financial information, see the original release.