NEW YORK - Terex, the Westport, Connecticut based company had earnings substantially above any analyst estimate and possibly went KOBATA. KOBATA is a seldom used Wall Street Word meaning "knocked it out of the ball-park above top anticipations." This is seldom done as usually one analyst has an anticipation above. The company increased revenue 67% to $1.8 billion from $1 billion in the previous year. Earnings were up a staggering 22% sequentially. Income from operations came in at $52.6 million but excluding impacts from Terex's share purchase of Demag, income from operations was $78 million. Earnings per share came in at a heavy 33 cents a share.
The company said "supplier disruptions and higher input costs are still impacting" the business. This negative is tempered by the fact that Terex earnings will improve even moreso as their suppliers get up to Terex's level. Backlog increased to $2.2 billion from $1.7 billion from Q2, 2011, up 30% and 75% from Q3 last year. The company also raised its revenue guidance by a full billion for the rest of 2011.
Ronald DeFeo the CEO of Terex said "As a result of price increases which we will be instituting, as well as cost saving initiatives across our businesses, we anticipate increases in profitability to outpace our growth in net sales." As the company's operating margin grows so will profitability.
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