WESTPORT, Conn., July 30, 2020 /PRNewswire/ -- Terex Corporation (NYSE: TEX) today announced a second quarter 2020 loss from continuing operations of $(3.2) million, or $(0.05) per share, on net sales of $690.5 million. In the second quarter of 2019, the reported income from continuing operations was $81.6 million, or $1.14 per share, on net sales of $1.3 billion.  This compares to income from continuing operations, as adjusted, of $86.9 million or $1.21 per share in the second quarter of 2019. The Glossary at the end of this press release contains further details regarding these non-GAAP measures.

John L. Garrison, Jr., Terex Corporation Chairman and CEO, commented, "We continue to vigilantly follow the necessary COVID-19 safety protocols to protect the health and safety of our team members and their families, while safely serving our customers. Our commitment to a Zero-Harm Safety Culture is resolute and I am proud of our team members' rigor in following the necessary safety protocols." 

Mr. Garrison continued, "While the COVID-19 pandemic continues, global economic activity has gradually recovered but remains below pre-COVID-19 levels. In response to lower customer demand, we are closely aligning our production plans."

"Aerial Work Platforms (AWP) rapidly reduced Aerials production in response to lower customer bookings in North America and Europe but saw commercial demand return in China," commented Mr. Garrison. "In addition, the Utilities team has moved into its new, state-of-the-art facility, which will improve production efficiency and enable future growth," said Mr. Garrison.

Mr. Garrison continued, "Materials Processing (MP) demonstrated strong execution by delivering high single digit operating margin despite significantly lower demand in commercial end markets. MP continues to position its business for future growth by expanding into new geographies and delivering innovative, new products."

Positive free cash flow generation in the quarter of $71 million resulted in the company maintaining liquidity of approximately $1 billion which provides Terex with the financial flexibility to successfully operate the business through the pandemic and be well positioned for future growth. 

"Our financial performance reflects the efforts of the entire Terex team to swiftly reduce and remove costs from the business," said John D. Sheehan, Terex Corporation Senior Vice President and Chief Financial Officer. "Strong cost management and disciplined working capital management will continue to be a focus of all Terex team members," continued Mr. Sheehan.

Based on the Company's current expectations of the markets for the remainder of 2020, the Company anticipates sales in the second half of 2020 to be similar to the first half of the year.  Although the full severity and duration of the global pandemic is unknown, it is anticipated that our operating results will continue to be impacted.  Also, net working capital is expected to be a source of cash in the second half of 2020 as production will be closely aligned with customer demand.

Mr. Garrison concluded, "While the economic outlook remains uncertain, by producing in-line with customer demand and aggressively managing costs, Terex is confident it will successfully navigate these challenging times."