- Terex ( NYSE: TEX ) topped consensus mark in Q3 , reported after hours on Thursday.
- Sales grew 13% Y/Y and 21% when adjusted for FX rates, primarily due to improved price realization necessary to mitigate rising costs across all segments and healthy demand.
- Materials Processing sales up 9.4% to $457.9M and Aerial Work Platforms sales up 15.7% to $662.6M.
- The company ended the quarter with $3.9B backlog, an increase of 33% Y/Y.
- Operating margin rate was 10.8% for the quarter as compared to 7.5% year ago.
- Return on invested capital of 19.0% significantly exceeded company's cost of capital as it continued to invest in the business and return cash to shareholders through dividends and share repurchases.
- Julie Beck, Senior Vice President and Chief Financial Officer, said "We are proud that our strong balance sheet has allowed us to return approximately $120 million of cash to shareholders year-to-date. Our teams continue to execute on our multi-year growth plan, driving sales and expanding margins through disciplined pricing and expense management. As a result, we are raising our full year sales, margin and EPS guidance ranges."
- FY2022 Outlook : Net Sales outlook to ~$4.3B from prior view of $4.1B to $4.3B vs. consensus of $4.22B; Materials Processing sales of ~$1.9B; Aerial Work Platforms of ~$2.4B; EPS outlook from $3.80 to $4.20 to $4.00 to $4.20 vs. $3.95 consensus; Operating margin rate ~9.5% from prior outlook of 9.1% to 9.6%; Tax rate of 20%.
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Terex raised FY2022 EPS outlook range after 79% growth in Q3 and strong margins