Terex (US:TEX)2023-02-10 20:02Business Segments - The company operates in two segments: Materials Processing (MP) and Aerial Work Platforms (AWP) [12]. - MP segment includes products such as crushers, washing systems, and material handlers, serving construction, mining, and recycling industries [15]. - AWP segment offers aerial work platform equipment, including scissor lifts and telehandlers, used in various construction and maintenance applications [18]. Financial Performance and Strategy - The company emphasizes a disciplined capital allocation approach, targeting an optimal capital structure of approximately 2.5 average net debt to EBITDA over the cycle [28]. - The company has completed multiple acquisitions over the past two years to enhance its portfolio and expand its operational capabilities [27]. - The total backlog as of December 31, 2022, was $4,070.9 million, an increase of $740.2 million from $3,330.7 million in 2021, driven by strong global customer demand [42][43]. - The Materials Processing (MP) segment backlog increased approximately 12% from 2021, primarily due to higher demand in North America, Western Europe, and Asia Pacific [44]. - The Aerial Work Platforms (AWP) segment backlog increased approximately 27% from 2021, driven by robust demand primarily in the U.S. [44]. - The company expects comparable sales in the first and second halves of 2023, with modestly higher sales anticipated in the second and third quarters due to extended product deliveries [65]. - The company is actively pursuing cash generation opportunities, including cost reduction and selective investments to promote growth [66]. - The company is focused on cash generation opportunities, including reducing costs and working capital, to ensure adequate liquidity for operations and debt service requirements over the next 12 months [66]. Innovation and Product Development - The company focuses on innovation, aiming to improve product offerings and operational efficiency through new technologies and processes [26]. - Product innovation is a core element of the company's growth strategy, with a robust product development pipeline expected to bring new, differentiated products to market [52]. - The company is developing alternative power solutions across its product lines, including battery-electric and fuel-electric hybrid technologies [51]. - The company has taken a lead in developing alternative, environmentally friendly equipment power solutions as customer demand for these options continues to increase [63]. - The company is actively developing products with lower greenhouse gas emissions and has introduced all-electric utility bucket trucks, responding to market demand for environmentally friendly equipment [63]. Safety and Environmental Commitment - The company maintains a strong commitment to safety, governance, and environmental stewardship as part of its corporate values [23]. - The company aims to achieve a lost time injury rate of 0.20 and a total recordable injury rate of 1.00 by 2024, having improved from 0.80 and 3.82 in 2016 to 0.54 and 1.93 by the end of 2022 [67]. - The company is committed to reducing greenhouse gas emissions and has increased production of products with lower emissions, including all-electric and fuel-electric hybrid options [63]. - The company does not expect compliance expenditures related to environmental laws and regulations to have a material adverse effect on its business [64]. - The company is committed to complying with environmental laws and regulations, with no material incidents requiring significant expenditures reported [64]. Workforce and Diversity - The company has approximately 9,300 team members as of December 31, 2022, with about 3,800 located in the U.S. [69]. - The company has established five-year goals to increase representation of women in leadership and operational roles, extending these goals for another five years in 2022 [75]. - The company has a robust talent review process and offers a wide range of training programs to support team member development [70]. - The company has established a Global DEI Governance Council to enhance diversity, equity, and inclusion within its workforce, with specific goals set for increasing non-majority representation [76]. - 84% of team members participated in the global engagement survey [69]. Legal and Compliance - The company is engaged in various legal proceedings regarding intellectual property rights, but believes the outcomes will not materially affect its business [59]. - In 2022, no single customer accounted for more than 10% of consolidated net sales, with the largest customer accounting for less than 4% [56]. - The company’s largest customer accounted for less than 4% of consolidated net sales in 2022, with the top ten customers collectively accounting for less than 25% [56].