Terex Corporation reported its quarterly results for the period ending September 30, 2024, revealing a decline in net sales and profitability compared to the same period in 2023. Net sales for Q3 2024 were $1,212 million, down 6.0% from $1,290 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $3,886 million, a slight decrease of 1.1% from $3,929 million in the prior year.
The company's gross profit for Q3 2024 was $245 million, representing 20.2% of sales, down from $292 million (22.6% of sales) in Q3 2023. Income from operations also fell to $122 million (10.1% of sales) from $163 million (12.6% of sales) in the same quarter last year. For the nine-month period, income from operations decreased to $473 million (12.2% of sales) from $521 million (13.3% of sales) in 2023.
The decline in sales was particularly pronounced in the Materials Processing (MP) segment, which saw a 17.9% drop in net sales to $444 million in Q3 2024, attributed to channel adjustments and lower end-market demand. Conversely, the Aerial Work Platforms (AWP) segment experienced a modest increase of 2.4% in net sales to $769 million, although this was below expectations due to delivery adjustments from U.S. rental customers.
Terex's net income for Q3 2024 was $88 million, down from $119 million in Q3 2023, with basic earnings per share decreasing to $1.32 from $1.77. For the nine months, net income was $337 million, compared to $391 million in the previous year.
Strategically, Terex completed the acquisition of Dover Corporation’s Environmental Solutions Group (ESG) for $2 billion on October 8, 2024, financed through a combination of senior notes, a new term loan, and cash on hand. This acquisition aims to enhance Terex's offerings in the environmental equipment sector. Additionally, the company incurred transaction costs of $7 million for Q3 2024 related to this acquisition.
As of September 30, 2024, Terex reported total assets of $3,781 million, up from $3,615 million at the end of 2023, and total stockholders' equity increased to $1,957 million from $1,672 million. The company maintained a strong liquidity position with $952 million available, despite a decrease in cash provided by operations to $149 million for the nine months ended September 30, 2024, down from $269 million in the prior year.
Overall, Terex's performance reflects challenges in sales and profitability, particularly in the MP segment, while strategic acquisitions aim to bolster its market position moving forward.
About TEREX CORP
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