By RTT News, February 19, 2013, 10:24:00 PM EDT
(RTTNews.com) - Construction equipment maker Terex Corp. ( TEX ) reported Tuesday a loss for the fourth quarter that sharply widened from last year, hurt by loss on early extinguishment of debt. Striping down the charges, adjusted earning per share from continuing operations significantly missed analysts' expectations, so did net sales. The company also provided earnings guidance for the full-year 2013, in line, and revenue outlook below Street view.
"We were impacted in the second half of the year by challenging end markets in Europe and Asia but we still meaningfully improved our profitability, generated approximately $554 million of free cash flow, restructured and reduced our debt, and began to realize integration savings as planned," Chairman and CEO Ronald DeFeo said in a statement.
The Westport, Connecticut-based company reported a net loss of $33.3 million or $0.30 per share for the fourth quarter, sharply wider than $2.9 million or $0.03 per share in the prior-year quarter.
Loss from continuing operations sharply widened to $30.7 million or $0.28 per share from $4.2 million or $0.04 per share last year.
Excluding items, adjusted income from continuing operations for the quarter was $21.9 million or $0.19 per share, compared to $27.3 million or $0.25 per share in the year-ago quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.40 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter declined 13.3 percent to $1.70 billion from $1.96 billion in the same quarter last year, and missed sixteen Wall Street analysts' consensus estimate of $1.83 billion.
Backlog for orders deliverable during the next twelve months was about $2.01 billion at December 31, 2012, an decline of 7 percent from December 31, 2011.
Operating margin for the quarter remained flat with last year at 1.6 percent, with gross profit margin improving 260 basis points, offset by selling, general and administrative expense, as a percentage of sales, increasing 260 basis points from a year ago.
For fiscal 2012, the company reported net income of $105.8 million or $0.93 per share, higher than $45.2 million or $0.41 per share in the prior year. Income from continuing operations surged to $103.6 million or $0.91 per share from $38.6 million or $0.35 per share last year.
Excluding items, adjusted income from continuing operations for the year was $1.83 per share, compared to last year's $046 per share.
Net sales for the full year grew to $7.35 billion from $6.50 billion in the previous year.
Analysts expected the company to report full-year 2012 earnings of $2.03 per share on annual revenues of $7.48 billion.
Looking ahead to fiscal 2013, the company expects adjusted earnings in a range of $2.40 to $2.70 per share, on projected revenues between $7.9 billion and $8.3 billion.
Street is currently looking for full-year 2013 earnings of $2.66 per share on revenues of $7.79 billion.
"We are optimistic about our business as we begin 2013. We are seeing improvements in many of our end-markets and believe the macro-economic uncertainty that affected our fourth quarter performance will abate by the middle of 2013," DeFeo noted on the outlook.
Providing initial trends for fiscal 2015, the company said, "We have established a 2015 earnings per share goal of $5 from $10 billion in net sales and with a 15% return on invested capital. We believe these targets can be achieved through organic growth and operational improvements."
TEX closed Tuesday's regular trading session at $34.91, down $0.01 or 0.03% on a volume of 2.46 million shares. The stock lost a further $1.91 or 5.47% in after-hours trading.
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