17 February 2016, 09:15
Terex Corporation today announced fourth quarter 2015 income from continuing operations was $14.6 million, or $0.13 per share, on net sales of $1.6 billion. In the fourth quarter of 2014, income from continuing operations was $79.9 million, or $0.71 per share, on net sales of $1.8 billion. Income from continuing operations as adjusted was $55.4 million, or $0.50 per share, in the fourth quarter of 2015 compared to $80.3 million, or $0.72 per share excluding the $0.49 per share tax benefit related to the ASV disposition and certain other items, in the fourth quarter of 2014. All per share amounts are on a fully diluted basis. (The Glossary at the end of this press release contains further details regarding these items.)
For the full year 2015, Terex reported income from continuing operations of $142.5 million, or $1.30 per share, on net sales of $6.5 billion, compared to income from continuing operations of $259.0 million, or $2.27 per share, on net sales of $7.3 billion for the full year 2014. Income from continuing operations as adjusted for the full year 2015 was $201.9 million, or $1.84 per share, compared to $268.5 million, or $2.35 per share, in 2014 which excluded a $0.49 per share tax benefit related to the ASV disposition and certain other items.
“The macro operating environment in the fourth quarter was challenging,” said John L. Garrison, Terex President and CEO. “Global economic volatility has made our customers more cautious overall, resulting in fourth quarter order activity that was below expectations in most business segments and product categories. On a positive note, free cash flow for the year came in at a strong $290 million, nearly double our 2015 net income. Cash flow generation will be a primary focus going forward.”
Mr. Garrison continued, “Looking ahead to 2016, we do not see market conditions improving. We anticipate lower fleet replacement from North American AWP rental customers. The oil and gas and commodity market decline will continue to impact demand across many of our products. We are developing and implementing plans to align our cost structure with these market realities. We expect 2016 earnings per share to be between $1.30 and $1.60, excluding restructuring and other unusual items, and net sales to be about 10% lower than 2015.”