Terex revenues fall 10.5% in 2015

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22 February 2016

Terex

Terex

US-based equipment manufacturer Terex has recorded revenues of US$ 6.543.1 billion – a decrease of -10.5% from the $ 7.308.9 recorded in 2014.

The company’s reported income was $ 355.3 million for 2015, compared to the $ 423.1 million in 2014.

Earnings before interest, taxes, depreciation and amortization (EBITDA) also dropped to $ 478.1 million 2015, from $ 629.5 million in 2014.

The company said that it is cautious of the China market “slowing”, among other things, but is confident that restructuring actions and new product development will help control any potential danger.

John Garrison, president and CEO, said, “Global economic volatility has made our customers more cautious overall, resulting in fourth quarter order activity that was below expectations in most business segments and product categories.

“On a positive note, free cash flow for the year came in at a strong $ 290 million, nearly double our 2015 net income. Cash flow generation will be a primary focus going forward.”

He added, “Looking ahead to 2016, we do not see market conditions improving. We anticipate lower fleet replacement from North American AWP rental customers.

“The oil and gas and commodity market decline will continue to impact demand across many of our products. We are developing and implementing plans to align our cost structure with these market realities.

Garrison also said that the company expects net sales for 2016 to be about 10% lower than in 2015.

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