- Terex (TEX -15.3%) reported Q3 sales increase of 11% Y/Y to $1.23B, booking +22% Y/Y and backlog was at $1.6B (+41% Y/Y).
- Sales by segments: AWP $634.2M (+13.9% Y/Y); Cranes $301.2M (-0.23% Y/Y) and MP $295.2M (+13.6% Y/Y).
- AWP bookings grew by 50% to $601M, reflecting continued strong demand across all major regions.
- Q3 Gross margin declined by 76 bps to 18.9% and operating margin was flat at 5.9%.
- Segment operating margins: AWP 11.5% up by 120 bps; Cranes -4.7% down by 460 bps and MP 13% up by 210 bps.
- SG&A expenses increased by 5.1% Y/Y to $160.9M.
- Net cash used in operating activities YTD was $19.6M, compared to $56.2M a year ago.
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FY18 Guidance, lowered: Adj. EPS $2.60-2.70 (prior $2.80-3.00).
- The updated guidance reflects third quarter results, updated production plan in Cranes, higher input costs, including tariffs, and anticipated foreign exchange headwinds.
- Previously: Terex misses by $0.09, misses on revenue (Nov. 1)