WESTPORT, Conn.--(BUSINESS WIRE)--Sep. 15, 2014--
Terex Corporation (NYSE:TEX) today announced that it is lowering its
full year 2014 guidance, as well as providing quarterly guidance for the
third quarter. Full year 2014 earnings per share is now expected to be
between $2.35 and $2.50, as adjusted for certain non-recurring items.
Previous full year 2014 guidance was an earnings per share of between
$2.50 and $2.80. Due to the timing of this announcement, the Company is
also providing third quarter 2014 earnings per share guidance of $0.55 -
$0.65 per share, excluding certain non-recurring items.
The primary driver of the guidance change is weakness in the Cranes
segment. Despite a positive trend in book-to-bill ratios over the first
half of 2014, the Cranes order rate has dropped significantly in July
and August. Additionally, Cranes customers in developing markets are
struggling to secure financing for orders scheduled for delivery in the
second half of 2014.
“We do not take lightly the need to adjust market expectations.
Admittedly, the global Cranes marketplace has been challenging to
forecast. During 2014, we have certainly seen more muted end markets in
Cranes than we originally contemplated back in February. While we do see
positive trends in certain aspects of our other segments, this has been
more than offset by the recent weakness in Cranes end markets,”
commented Ron DeFeo, Terex Chairman and CEO.
“The balance of our guidance remains intact, including our guidance for
Free Cash Flow of between $200 and $250 million in 2014. We also remain
positive on the longer term prospects for EPS growth in our business,
driven in no small part by the internal improvement initiatives underway
throughout our Company.”
Forward Looking Statements
This press release contains forward-looking information based on the
current expectations of Terex Corporation. Because forward-looking
statements involve risks and uncertainties, actual results could differ
materially. Such risks and uncertainties, many of which are beyond the
control of Terex, include those factors that are more specifically set
forth in the public filings of Terex with the Securities and Exchange
Commission. Actual events or the actual future results of Terex may
differ materially from any forward looking statement due to those and
other risks, uncertainties and significant factors. The forward-looking
statements speak only as of the date of this press release. Terex
expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statement included in
this press release to reflect any changes in expectations with regard
thereto or any changes in events, conditions, or circumstances on which
any such statement is based.
Terex Corporation is a lifting and material handling solutions company
reporting in five business segments: Aerial Work Platforms,
Construction, Cranes, Material Handling & Port Solutions and Materials
Processing. Terex manufactures a broad range of equipment for use in
various industries, including the construction, infrastructure,
manufacturing, shipping, transportation, refining, energy, utility,
quarrying and mining industries. Terex offers financial products and
services to assist in the acquisition of Terex equipment through Terex
Financial Services. Terex uses its website (www.terex.com)
and its Facebook page (www.facebook.com/TerexCorporation)
to make information available to its investors and the market.
Source: Terex Corporation
Tom Gelston, 203-222-5943