Terex Corp (TEX) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2015

Earnings Press Release
10-K Annual Report
10-K YoY Changes
Terex Corp
Ticker: TEX CIK: 97216

Fourth Quarter and Full Year 2015 Earnings Release Conference Call

February 17, 2016

Thomas Gelston - Terex Corporation – Vice President, Investor Relations

Good morning everyone, and thank you for joining us for today’s fourth quarter 2015 financial results conference call. Participating on today’s call are John Garrison, President and Chief Executive Officer, and Kevin Bradley, Senior Vice President and Chief Financial Officer. Following prepared remarks, we will conduct a question and answer session.

Last evening we released our fourth-quarter 2015 results, a copy of which is available on our website at www.terex.com. Today’s call is being webcast and is accompanied by a slide presentation, which includes a reconciliation of non-GAAP to GAAP financial measures that we will use during this call, and is also available on our website. All per share amounts in the presentation are on a fully-diluted basis. As usual, we will post a replay of this call on the Terex website under Audio Archives in the Investor Relations section.

Let me direct your attention to slide 2, which is our forward-looking statement and explanation of non-GAAP financial measures. We encourage you to read this as well as other items in our disclosures because the information we will be discussing today does include forward-looking material.

With that, please turn to slide 3 and I'll turn it over to you, John.

John L. Garrison, Jr. - Terex Corporation - President and Chief Executive Officer

Thanks, Tom, and good morning everyone. Given this is my first earnings call with Terex, I wanted to start by saying how pleased I am to be leading Terex in these dynamic, exciting and challenging times. Kevin and I will cover three topics today before we take your questions. First, I will offer my initial insights on my first 100 days at Terex. Next, we will review our results for the fourth quarter of 2015, the full year 2015 and provide our perspectives on 2016. Finally, I will provide an update on our announced plan for a merger of equals with Konecranes, and comment on the Zoomlion non-binding acquisition proposal.

It certainly has been an exciting and informative first 100 days. We recently completed our annual Terex senior leadership meeting, the theme of which was “Proud Past / Better Future”. Yes, there have been some rough patches, but what is important is that the team recognizes we need to improve our overall execution. With that recognition, there is a lot to be proud of at Terex. We have outstanding businesses and brands that are leaders in their respective industries. We have innovative, industry-leading products and services that provide our customers a competitive advantage. We have dedicated and hardworking team members. We also have a strong value system in the Terex Way, which quite honestly is one of the areas that attracted me to Terex.

The team has good reason to be proud of its past, but to create a better future we have to improve our execution. The team is focused on implementing an “Execute to Win” business system. This is the system we will use to critically evaluate our strategy, our operations and our talent development to ensure that we consistently achieve our commitments to our customers, shareholders and team members. Without question, we need to improve our return on invested capital, our margins and our cash flow generation, especially in the troughs of the business cycle. An integral part of our strategy will be to continually invest in the development of new products and services. To win in a competitive environment we need to have products and services that provide our customers with a compelling competitive advantage. We will also work on all elements of our cost structure to ensure we can fund our new product development, while maintaining acceptable rates of return – returns above our cost of capital.

I would now like to turn to slide 4 and discuss our overall performance. We intensified our focus on cash flow generation in the quarter and delivered strong cash flow performance. We see cash flow generation as one of the key metrics going forward. Sales declined 11.8% in the fourth quarter, 6.2% of the decline relates to a stronger dollar versus other currencies, especially the Euro. Earnings for the quarter were $.50 per share on an adjusted basis; full year earnings were $1.84 per share on an adjusted basis. We ended the year with free cash flow of $290 million, well above our target of $200 to $250 million established early in 2015. This was a good performance by our team under tough conditions.

Demand declined in the quarter, as customers became more cautious in their outlook. Compared to a year ago, we ended the quarter with a lower order book and backlog in our Aerial Work Platforms (AWP), Material Handling & Port Solutions (MHPS) and Cranes businesses, but with increases in Construction and Materials Processing (MP). Turning to slide 5, global markets were challenging in the quarter and we anticipate they will remain so for 2016. We expect global macro-economic uncertainty to continue, with headwinds from countries that are commodity dependent, along with persistent challenges from low oil and gas prices, as well as from foreign exchange volatility. Our largest market remains North America, which declined 4% for the quarter on a year-over-year basis. Although markets in North America were mixed by segment, adjusting for the divestiture of our ASV business in late 2014, we were essentially flat. We saw significant declines in demand in Latin America, the Middle East, and Africa due to economic and geopolitical uncertainty along with low oil and commodity prices. In Asia and Oceania, we did see a year-over-year increase in fourth quarter demand due to large crane

The following information was filed by Terex Corp (TEX) on Thursday, February 18, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Terex Corp's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by Terex Corp.

Continue

Please wait while we load the requested 10-K report or click the link below:

https://last10k.com/sec-filings/report/97216/000009721616000245/tex201510-k.htm