WASHINGTON (dpa-AFX) - Terex Corp. (TEX), a manufacturer of capital goods machinery products, on Wednesday said profit in the first quarter increased from the prior year, as demand strengthened in North America.
Net income rose to $23 million or $0.20 per share from $11.7 million or $0.10 per share in the prior year.
Income from continuing operations climbed to $20.5 million or $0.18 per share from $5.0 million or $0.04 per share for the first quarter of 2011. The latest results included a write down of an acquisition related note receivable of $0.11 per share.
Excluding items, income from continuing operations were $33 million or $0.29 per share, compared to a loss of $20.3 million or $0.17 per share last year. On average, 16 analysts polled by Thomson Reuters expected earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter increased to $1.82 billion from $1.26 billion a year ago. Analysts expected revenue of $1.78 billion for the quarter.
Excluding the impact of the acquisition of Demag Cranes, net sales increased around 16 percent from the comparable prior year period.
Segment-wise, net sales for the Terex Aerial Work Platforms climbed 35.7 percent to $513.4 million. Terex said it continues to see recovery in the North American rental channels for its aerial work platform products with demand continuing to strengthen.
In Terex Construction, net sales grew 6.3 percent to $363.1 million, led by truck and component part sales, particularly to the developing markets in Russia, Africa and China.
The Cranes segment grew sales by 5.3 percent to $419.4 million amid strong demand in North American businesses, primarily for rough terrain cranes.
Ron DeFeo, Terex Chairman and CEO, said, 'We are focused on executing the plan we articulated in February, namely achieving in 2012 approximately $475 to $525 million in operating profit and earnings per share of $1.65 to $1.85 per share...on sales of $7.5 to $8.0 billion. We believe, based on current economic conditions, that we can achieve these targets, while also continuing the momentum of cash generation started this past quarter.'
TEX closed on Wednesday at $23.90, down $0.55 or 2.25 percent from the previous close, on a volume of 5.36 million shares. The stock gained 3.85 percent in the extended trade.
Copyright RTT News/dpa-AFX
© 2012 AFX News
