Terex reported third quarter 2020 net sales of $765.6 million, compared with $1.02 billion during the same period last year, a decrease of 25% . Through Sept. 30, 2020 net sales were $2.289 billion, compared with $3.468 billion during the same period in 2019, a 34% decrease.
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Net sales in the company’s Aerial Work Platforms segment were $445 million, compared with $628.2 million in Q3 2019. Terex’s Material Processing segment net sales saw net sales of $311.3 million, compared with $382.7 million a year ago.
“Our results demonstrate the progress we are making to align our cost structure with the current customer demand environment,” says John L. Garrison, Jr., Terex chairman and CEO.” We are strategically reducing spending and consolidating our company-wide footprint. These actions will enable us to maintain a competitive cost structure and position us for growth.”
Commenting specifically on the company’s segments, Garrison says, “Aerial Work Platforms improved its operating performance delivering 3.0% operating margin reflecting the gradual sequential improvement in business activity. In addition, both Genie and Terex Utilities are seeing improved utilization levels of their equipment,” Garrison says.
In addition Materials Processing delivered a 12.9% operating margin.
“Terex’s third quarter results demonstrate our ability to offset challenging macroeconomic conditions by focusing on levers within our control,” says John D. Sheehan, Terex senior vice president and CFO. “We mitigated these headwinds with disciplined cost and working capital management to generate $54 million of positive free cash flow in the quarter. Our free cash flow performance reflects steady improvement in our businesses and strong execution.”
Terex says its overall revenue expectation for 2020 remains unchanged from its July outlook. Looking at historical cash flow patterns, Terex expects the fourth quarter of 2020 to be the strongest free cash flow quarter of the year, with net working capital continuing to be a source of cash.
“Finally, I am very proud with how our global team is managing through this challenging year. We are on the path to enter 2021 as an even stronger company,” Garrison says.