Terex Corporation announced a first quarter 2020 loss which heavily relates to COVID-19
Westport, Conn. – Terex Corporation announced a first quarter 2020 loss from continuing operations of $24.7 million, or $0.35 per share, on net sales of $833.6 million.
In the first quarter of 2019, the reported income from continuing operations was $57.2 million, or $0.79 per share, on net sales of $1.1 billion. This compares to income from continuing operations, as adjusted, of $62.3 million or $0.87 per share in the first quarter of 2019.
“First and foremost, we have taken measures to prioritize the health and safety of our team members, families and customers during the COVID-19 pandemic,” said John L. Garrison, Jr., Terex Chairman and CEO. “While the first two months of the year met our expectations, during March, global economic activity, including customer capital equipment purchases, sharply contracted. In response to this unprecedented situation, we swiftly implemented safety, financial, and production actions.”
The current status of global operations can be found on the Terex website under the COVID-19 resources section.
On March 31, 2020, the company had $945 million of available liquidity. In order to maintain Terex’s strong liquidity position, on April 23, 2020, Terex completed an amendment and waiver of its revolving credit facility with its bank group. This action provides continued access to ample liquidity and the financial flexibility to successfully operate the business during this period of economic uncertainty.
In addition, the Company undertook significant cost reduction actions, including suspending its dividend and share repurchases, reducing team member compensation, temporary furloughs, and permanent layoffs of team members. These actions seek to match the cost structure to the current economic environment.
The Company withdrew its 2020 financial guidance on March 25, 2020 and will not issue revised guidance due to the economic uncertainties resulting from the COVID-19 pandemic. The full severity and duration of the related global economic crisis is not known, but it is expected to continue to negatively impact our operating results.
“I am proud of the determination and dedication of our Terex team members, who continue to follow our Zero Harm Safety Program and safely serve our customers despite difficult market conditions. Terex will emerge well-positioned to continue to serve our customers and participate in the future economic recovery.” said Garrison.