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NORWALK, Conn. - Terex Corporation (NYSE: NYSE:TEX), a global manufacturer of materials processing machinery and aerial work platforms, has updated its financial outlook for the full year of 2024. The company now expects adjusted earnings per share to be in the range of $5.80 to $6.20, with projected revenues of $4.85 to $5.05 billion. This forecast excludes the impact of the Environmental Solutions Group (ESG) acquisition.
Simon Meester, President and CEO of Terex, noted that the adjustment comes as a response to global channel partners adapting more quickly than anticipated, which led to reduced sales volumes. Specifically, in the Aerial Work Platforms (AWP) segment, customers have scaled back on planned deliveries to match rental demand patterns. Similarly, the Materials Processing (MP) segment saw dealers modifying inventory levels in response to end-user assessments of the broader economic climate.
Despite short-term adjustments, Meester affirmed that long-term industry trends remain stable. He also indicated that Terex will continue to realign its cost structure and production plans to meet current demands.
Meester also highlighted the anticipated close of the ESG acquisition early in the fourth quarter as a significant development for Terex. The acquisition is expected to lessen the company's market cyclicality, be immediately accretive financially, and offer operational and commercial synergies. ESG is projected to contribute approximately $45 million in Adjusted EBITDA for the fourth quarter of 2024, aligning with previous expectations.
Terex has scheduled a conference call for Wednesday, October 30, 2024, at 8:30 a.m. Eastern Time to discuss its third-quarter financial results. The call will be led by Meester and Julie Beck, Senior Vice President and Chief Financial Officer. The financial results will be available on the company's investor relations website prior to the call.
The company's forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These statements are based on current projections and assumptions and are not guarantees of future performance.
Terex operates in two segments: Materials Processing and Aerial Work Platforms, and its products are used across maintenance, manufacturing, energy, recycling, and construction applications. The company emphasizes its commitment to environmentally friendly products, including electric and hybrid offerings.
This article is based on a press release statement from Terex Corporation.
In other recent news, Terex Corporation has made significant strides in its business operations. The company has cleared a regulatory hurdle in its acquisition of Environmental Solutions Group (ESG) from Dover Corporation (NYSE:DOV), a development that marks a significant step toward completing the transaction. The financial terms of the acquisition, which is anticipated to conclude later this year, have not been disclosed.
Simultaneously, Terex has expanded its credit facilities to support the acquisition of ESG, involving major financial institutions such as UBS, Bank of America, Barclays, and JPMorgan Chase (NYSE:JPM). The new credit facility provides an additional $800 million in senior secured incremental revolving loan commitments, which is set to replace the existing one upon the closure of the Dover transaction.
In financial highlights, Terex reported robust second quarter results for fiscal year 2024, with revenues totaling $1.4 billion and adjusted earnings per share (EPS) standing at $2.16. Consequently, the company has increased its full-year adjusted EPS forecast to a range of $7.15 to $7.45. Despite facing challenges in the European markets, particularly Germany and Italy, Terex maintains a strong balance sheet and reaffirms its 2024 free cash flow outlook of $325 million to $375 million. Full-year sales are projected to be between $5.1 billion and $5.3 billion, with an increased operating margin outlook of 12.9% to 13.2%. These are the recent developments concerning Terex Corporation.
InvestingPro Insights
Terex Corporation (NYSE: TEX) has recently updated its financial outlook, signaling a strategic response to market shifts. In light of this, it is essential to consider the company's financial health and stock performance. Here are some insights based on InvestingPro data and tips that may be relevant to investors and stakeholders following the company's progress.
InvestingPro Data for Terex Corporation shows a market capitalization of $3.74 billion, reflecting the company's size and market presence. The P/E ratio, a measure of the company's current share price relative to its per-share earnings, stands at 7.74, which is adjusted to 7.55 for the last twelve months as of Q2 2024. This suggests that the stock may be trading at a lower price relative to its earnings, potentially offering value to investors. Additionally, the company's PEG ratio, which accounts for earnings growth, is at 0.63, indicating that the stock could be undervalued based on its growth outlook.
Two InvestingPro Tips that stand out for Terex Corporation are:
1. The company has raised its dividend for 3 consecutive years, showcasing a commitment to returning value to shareholders. This is further supported by a dividend growth of 13.33% over the last twelve months as of Q2 2024, demonstrating robust financial management and confidence in future earnings.
2. Analysts have revised their earnings upwards for the upcoming period, signaling optimism about the company's profitability and performance going forward.
For those interested in a deeper analysis, InvestingPro offers additional tips on Terex Corporation, providing a comprehensive look at various metrics and forecasts that can guide investment decisions. You can find more of these insights at https://www.investing.com/pro/TEX.
The provided data and tips are particularly relevant given the company's recent adjustments to its financial outlook and ongoing strategic developments, such as the ESG acquisition. Understanding these metrics can help investors gauge the potential impact of these changes on the company's financial health and stock performance.
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