Terex Corporation (TEX) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $267.20 million, or $ 2.52 a share in the quarter, against a net profit of $16.50 million, or $0.15 a share in the last year period. On an adjusted basis, earnings per share were at $0.07 for the quarter compared with $0.29 in the same period last year.
Revenue during the quarter dropped 16.52 percent to $974.70 million from $1,167.60 million in the previous year period. Gross margin for the quarter contracted 770 basis points over the previous year period to 10.74 percent. Operating margin for the quarter stood at negative 27.92 percent as compared to a positive 4.90 percent for the previous year period.
Operating loss for the quarter was $272.10 million, compared with an operating income of $57.20 million in the previous year period.
"Our fourth quarter results were in line with our expectations and reflect the challenging global market conditions," said John L. Garrison, Terex president and chief executive officer. Mr. Garrison continued, "Looking ahead to 2017, we expect our primary global markets to remain challenging. We anticipate lower fleet replacement demand from North American AWP rental customers. The global Crane market remains challenging and we expect a further decline in 2017. We anticipate modest growth in our Materials Processing business. Combined with our cost reduction actions and capital structure improvements, we expect to deliver 2017 earnings per share of between $0.60 and $0.80, excluding restructuring, impact from our ownership interest in Konecranes, and other unusual items, on net sales of approximately $3.9 billion."
Operating cash flow improves significantly
Terex Corporation has generated cash of $367 million from operating activities during the year, up 72.38 percent or $154.10 million, when compared with the last year.
The company has spent $11.80 million cash to meet investing activities during the year as against cash outgo of $172.70 million in the last year.
The company has spent $300.10 million cash to carry out financing activities during the year as against cash outgo of $14.40 million in the last year period.
Debt comes down
Terex Corporation has recorded a decline in total debt over the last one year. It stood at $1,575.80 million as on Dec. 31, 2016, down 12.27 percent or $220.40 million from $1,796.20 million on Dec. 31, 2015. Total debt was 31.47 percent of total assets as on Dec. 31, 2016, compared with 31.86 percent on Dec. 31, 2015. Debt to equity ratio was at 1.04 as on Dec. 31, 2016, up from 0.94 as on Dec. 31, 2015.
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