Terex (TEX) 10 Feb 232022 Q4 Earnings call transcript

Greetings, and welcome to the Terex Fourth Quarter and Year End 2022 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Paretosh Misra, Head of Investor Relations. ahead. go Please

Investor welcome on end and the Terex quarter will on fourth release replay investors.terex.com. Good slide website. and earnings to conference year presentation our posted are XXXX presentation be of website call. and at and The available morning, also slides the Relations our A press copy

remarks by and Chief Julie Beck, and are by Chief Officer. We Financial Officer; joined followed John Executive Garrison, will Their prepared Vice Q&A. Chairman President be and Senior

to forward-looking turn the risks which are Please expressed results X Slide presentation, those implied. Today's to from actual or reflects of statement. Harbor to conference our different be that subject statements, Safe could cause call materially contains which

and in these found are performance measures In we can performance call addition, we materials. evaluating Reconciliations for company's information useful operating non-GAAP performance. and the conference be measures will be in non-GAAP the believe discussing

and to to turn over Slide X, I'll turn it Please Garrison. John

would everyone and interest good Thank and earnings in Terex. to your to like morning. you, appreciate call our Paretosh, I welcome

remains commitment Safety our The safe, production home worldwide our Values. Zero We and our our work operating I and our members' delivered culture driven top would continued Terex by shareholders. for team environment, performance challenging the another customers, in company, Way their to inflationary addressing safe, dealers team Harm for like priority It safe. results work to was including tirelessly members pressures, strong to think of thank and of safety the XXXX. year impacts. global members are COVID of that Terex performance proud team a disruptions improve

neutral up our and prior margins basis EPS of from excellent billion the by Sales quarter. customer X.X% year, year, of a up The delivered of strong FX year by XX% prior basis. points turn XX%, strong our team were Slide last results. We increased from driven ended reflecting global Please XXX members. improved with financial backlog from $X.X up XXXX an execution X and review billion, of XX% on $X.X $X.XX to to demand. Operating XX% team an

Slide supply our acquisition all We and ZenRobotics. expanded electrification ProAll. biotech We and XXXX innovate of We truck. disruptions we accelerated operating in business And deliver environmental acquisition strategy. electric inflation Execute, prioritized the recycling and managed in the on strategy. customers. proactively solutions improvement and circular invested return cost for product XX% neutrality year. We to economy Please significantly capital a strengthened X. and chain invested introducing to grow through concrete by income, of bucket We first focus EPS, increase We our in and with turn our to of our introduced XX% achieved price XX.X% which a Acculon, the through our our the offering utility system on the only in product new a

and for accomplishments. continued announced This co-development our team in we in week, budget. Mexico development new technology, to a equity we I on an products. time create electronics which our into And progress of investment and applications and potential robotic our entered am to product facility, continues proud members' on investment Terex agreement

to next several X. Day, the presented for recent drive In we five that theme Slide to our Turning will growth Investor key strategy our years. our

sustainability. which trends, driven are focus an is, first The capitalizing on by increasing on mega

by waste and through adjacent continue expanding to innovation are electrification, products well Materials and markets We'll our from infrastructure Our recycling Processing benefit into investments. grow positioned categories. to and segment

also opportunities offers electrification. for value utilities growth and which provides business, and will margin only a growth, growing to business Genie's see performance have We through and by we our parts cycle it driven the our not improvement. We in strong optimize service sales critical And growth in customers. us attractive countercyclical

we'll Genie lines in including priorities, supply multiple to improvement. production our The new up is Mexico. Genie's year, Monterrey, permanent on facility are running this. reflects to points chain focus footprint efficiencies global have make going progress XXXX. our facility outlook basis XXXX by continuous late throughout manufacturing moves The in operating continue new our will opening and these margin margins moving growth expected We This team production our anticipate when and negatively and strategic local Mexico our XXX fully a and on in improve and to busy But impact volumes year.

Please turn Slide to X.

sustainability many our globally, providing global Our MP center which will and At growth is believe AWP megatrends. further segments diverse a We megatrends be the by markets of is growth end strength opportunities. these in participate driving accelerated societal is increasing, world Terex. sustainability. recycling how The and providing for additional fundamental demand on for global global operates, changes. shift the waste is The driven regulatory in a focus increasing by solutions opportunities

of meeting demand MP and economy at circular were Ecotec, Our systems brands including for forefront Terex CBI the initiatives. washing

enhance electrification to greenhouse emissions great positioned capacity is Terex the to reliance on on in reduce infrastructure. grid investments increase The gas electrical capitalize needed expansion. well utilities requires to

and business States. United Genie from in benefit new Our will onshoring product driving digitization the

businesses increased of the our benefit throughout will government from sponsored globe. All spending infrastructure

providing solutions at Investor our ESG support many objectives. discussed we opportunities Day, As that we our growth see customers' by

Slide Please X. turn to

are sustainable material materials. MP various segment, handling delivering are versatile handlers, capable products our solutions Fuchs of for part customers. of machines our innovative Our

diversifying into applications. Fuchs Importantly, port

which system powered You can a by materials. shift is see unloading to hybrid bulk the Fuchs battery material handler,

and our ships' harbor. products, these result reduce a levels As emissions operations noise the in zero produced of

example Another Terex their customers sustainability helping in achieving of our goals.

Please turn X. Slide to

highlighted ESG our recognized sustainability, report, companies. that report we where materiality results of We America's our We one published responsible most to the XXXX are commitment recently first our proud ESG Newsweek Terex naming of to assessment. XXXX, in

essential products our help impacts Our among the their products to environment. and is goals, our and sustainability reduce Terex identified people our were the most customers journey. sustainability meet to negative

offer hybrid utility bucket options. offered Terex Utilities waste the XX% offerings. or to At of electric MP XXXX, approximately will market the to all-electric Genie And first its expand end of MP was only XX% and continue recycling truck. to the and continues and of products

identify us implement reduction are goal XXXX. both intensity at to energy commenced by for sites, we in XX% that our and our and Additionally, a greenhouse achieving of gas energy enabling actions audits important

respect be continues throughout With embraced and and our inclusion equity team to organization. driven to members, the diversity,

Our Affinity fold. updates we further year. Groups provide in expanded in rose summary, and highly remains two eight In active activities from XXXX nine the will participation throughout and Terex the ESG to

to review current Turning environment. to macroeconomic XX Slide our

XXXX continue not inventory eliminate Our face. of in team of the The level the hospital below supply reduce, be chain by time sequentially, historical remains able clear to to quarter, Supply the fourth is but a but our norms. teams on continue constrained well will issues. improved delivery has which to disruptions growth indication was

costs I'm have the of the improved way the markets, ability macroeconomic the have Although increases chain. various we facing. in team's to as overall continue supply challenges continue cost through see from our been and tiers selected confident some works its that inflation we to suppliers in overcome adapt to

let with And me over it Julie. turn that, to

Thanks, John, and good morning, everyone.

financial on look the million $X.X continued currency in team Let price a members us dollar. pound by Terex the billion, dynamic up execution rising quarter or mitigate higher Sales take quarter XX% a solid our XX% X% as were and currency XX. the of found costs. weakened on Slide year-over-year their negatively up euro performance in impacted foreign as and environment. in volume at improved were approximately translation against constant Sales to British necessary $XX realization sales fourth

out rates. and for as foreign margins cost negative year. our and prior pricing, exchange segments the in margins the quarter year last basis of by volume, neutral favorable the Both we XXX Gross increases cost increased increased initiatives of gross mix cost from price and our the points over offset year were impact

new expectations, investment in of technology a and prior coupled spend business X.X% basis as in of as sales with line continued new and but by investments due result prior to over SG&A the development. management. with product prudent expense up was inflation, decreased points was SG&A from XX the year incremental acquisitions and was year

basis the due million prior increased rates. compared benefited was a margin Income of of associated quarter $XX one-time from year. $XX points XXXX million year-over-year. operations relocation. than The Genie administrative fourth million expense and quarter the XXXX to XX% to the Interest of gain higher interest from $XXX with of X.X% up other fourth up Operating of was XXX was office

was XX%, relocation. office was million. a due year. later control. This quarter due foreign onetime $X.XX reflect discuss The XX% and share reversal fourth to reserve. unfavorable currency rate tax will $X.XX valuation $X.XX quarter volume, approximately to price over driven free was of Current quarter impact items, of cost results including $X.XX improvement EPS Free the effective $XXX of results earnings detail. the per performance of Fourth global last and cash per representing XXXX a strong dollars gain quarter dollars included flow discipline discrete Genie a German from by share the flow cash for the administrative fourth quarter more I in an increased

times and products on look continued operating points operational represents quarter of total favorable strong of and MP for income a billion, XX% business results, neutrality. the XX% XX.X%, backlog of had were yet sales ended XXXX increases strong ago. basis X segment product XXX to up MP from performance. from sales the full execution XX. approximately increased is to quarter price acquisitions. strong Let's several overcame with historical margin and compared found and resulting quarter Materials demand backlog in customer and basis, sales Slide norms overall quarter while margin cost $X.X segment in On XX% with multiple revenue our regional excellent The supports XX%. operating Processing at fourth drove our the its of robust with MP exchange an cost our Terex year, $XXX and another of starting resulting this million, up integrating a operating across neutral for benefited approximately XXXX outlook. This the businesses. The consistent effectively Again our and with up foreign year mix

due rates, platform XXX utilization more demand sales year. liability aging financial in management initiatives, margins XX% favorable product actions. strong a last compared by a demand up billion, operating was basis mix, sales sales neutral was be from and XX, on and and to in million, year of result to projects. the strict basis, quarter, delivered higher Customer XX%. Slide points the offset Total $X.X AWP aerial see our high reduction the record, $XXX to foreign X% doubled work Partially expense their operating The than improvement business. pricing our higher electrification profit disciplined expenses cost of fleets from quarter up utilities AWP pricing. XX% end On exchange year. delivered and On segment results. continues up prior prior at backlog a of increased volume,

XXXX Turning year Slide XX to and full highlights. financial

Our basis additional XX of including basis $X.XX, prior points our management end strong. of share inventory X.X% negative basis prudent in performance $X.X XX.X% XX% $XXX in Operating SG&A the up supply cash improvement flow cost XX% well $X.XX business realization. price focused and reflected FX was disruptions up efforts $X.XX margin the and increased chain year-over-year, strong remain $X.XX a was as XXX from points, an million the including as cost reflecting driven by Earnings of were FX sales XX% improvement, impact year, per extraordinary as management. XXXX by as Free of expanded continue. on year-over-year, members. to of share. billion neutral XX% markets per $Sales of team from decreased

Please see Slide disciplined for of strategy. capital an XX overview our allocation

balance this and performance continued financial provides a our financial to flexibility. sheet strengthen Our year

ROIC our remaining share to in the shareholders $XX and returned our million dividends. repurchases prepaid exceeded of cost term capital. $XXX We of significantly loan. XX.X% our Our million of We

we capital acquisitions We $XXX on our business million continue investments. million invest to in and deployed and $XX with expenditures of

debt no We until rate is XX% until and debt fixed a maturities of the end the XXXX of X% our decade. of have at

times leverage our remains is low target net the below Our X time, through well which at X.X cycle.

is of expanded $XXX and approximately repurchase in share the company's liquidity announced dividend the and per reflects $XXX XX% to to our million size The our to position by our confidence remaining our leaving excellent Terex We the a have quarterly of strong authorization an business. increase $X.XX December, financial of share. run us $XXX Board position we Yesterday, prospects. grow In million, shares. to in future continued million. with ample program increase purchase

the and Please minimal second our review cancellations We backlog. healthy historic rate remained in customer Consolidated were continue fleet inventory levels robust bookings XXXX turn ages loan to outs. push Slide booking to and dealer history. had Elevating to and XX at support highest levels demand. recent

the versus and XXXX. XX% backlog visibility year, our is position us total Our markets of prior end demonstrating up the into strength giving

year to outlook. to review XX full our turning Slide Now

As we variables we that supply a volatile and positively. could are best exchange inflation, negatively change to said, chain with as this realize as uncertainties, into estimate in rates our is important operating results XXXX, represents so high or move many challenging such it environment geopolitical today. With of outlook

share towards targets with per $X.X earnings financial Investor our based to $X.X sales progression billion anticipate of December. We our of reviewed $X to in reflects we Day billion, you which year on at five $X.XX

sales outlook chain remains to expect dialogue incorporates as the volumes customer offset with expectations. Our cost our higher demand pressures. and strong supply We suppliers latest anticipate pricing our and current actions

XX.X% business, with prudent the the full of of the third product and and second first XXXX second the sales and including new members, in higher. approximately half reflects our development year sales engineering SG&A modestly acquisitions. impact expect We and the digital of sales quarter be team investment to half initiatives comparable

Other We global year. Based spread and as margin and Genie XXXX to upon expenditures combined of expected the for we tax of we the higher amount rate of other including laws, component to approximately expect the XX% $XXX We $XXX XX.X% year. foreign capital $XXX an is tax the anticipate to of as discrete from XX%. throughout share Corporate rates, of effective interest the million, estimate tax not remain price unfavorable per approximately flow evenly increase be a a and million impact. $X.XX expect our million, Mexico range XXXX neutral largest are be normalization repeat. cost the operating for This to items year We cash our to to being with exchange free Unfavorable income facility. rate expenses in

continued to the to continue AWP to be our review and first outlook. billion Let's billion segment X% the to to for in chain sales segment and of increase due to quarters shortages, marketing balanced remainder be and margins and AWP strong approximately impacted expected slightly to in of year. strong slightly reflects $X with year and to constraints. supply $X.X the first of the to the costs AWP full higher. customer billion half segment reduced expected MP's quarter operating supply MP by second $X.X anticipated half sales $X.X be XX.X% segment billion demand are lower for comparable relatively the third margins being The approximately volumes are higher with continues and the second are of

Operating strict expected margin price expansion to partially is due efficiencies. manufacturing management, by expense realization, continued unfavorable increased offset volume,

I operating cash earlier, scheduled in will line The flow year. Terex team earnings free are As resiliency to manufacturing moves higher expansion, to production sales to margin share demonstrate expected impact XXXX. increased the throughout deliver growth, per continue mentioned and our efficiencies

will turn John. you, that, back I with And it to

Thanks, Julie.

markets, deliver in capital along we strong environmental. disciplined while prepared We'll end execute allocation infrastructure, including growth and Turning manufacturing XXXX continue new well in our to remarks. to for value strategic and to to Slide strategy, XX because our our for growth. in investing stakeholders products conclude capability, with Terex inorganic participate positioned long-term is electrification

challenging and an We in have have strong positions. strong resiliency demonstrated members, and environment and adaptability great team businesses, we market brands increasingly

with me And it that, to let Paretosh. back turn

Thanks, John.

questions many As to one limit during session, to follow-up we we morning. ensure ask answer a this your as the questions question-and-answer and as a to you reminder, possible

Operator? that, would open to With [indiscernible]. I like the

Instructions] Bank Thank Please ahead. Our Michael you. Feniger [Operator from from comes America. go of first question

open. Your is line

Hi, taking questions. my guys. Thanks for

delivered operating quarter. Just fourth out to ask in It margin a the actually keeps high processing. record about forming like materials the

that the for XXXX? guide And year? bps XX Just that margin why Can underpinning in just in maybe next expansion only what continue is strength?

deliver And MP you for also performance. performance. outstanding to MP the recognizing Michael. thank Thanks, consistent continues

really backlogs. opening As normal sales, in of times Julie bookings, global backlog indicated businesses. Terex in look it, more level from her into our seen the of we've X healthy we almost operating business comments, this overall strength If the strong margin. represents XXXX. look we than XX% forward the got presence the elevated as But of We've at comes

backlog, healthy healthy bookings. So

business in, bookings verticals The I just when of and business. look aggregates, it's important the And when this creates think side. recycling to the caters it but segment, aggregates you also we we around not that respective in construction business, largest virgin MP at And our to a opportunities our similar our understand investors backlog again, waste, demolition then for aggregates changes portion see that if story. the for the healthy compete that in caters see you practices world, global

strength business. So globally aggregates our good we're seeing in

We because good showing It's But the growth advanced Concrete, just order their activity, to in good little made strength and business, to year tied continues did backlog. a a there a watch and had see the concrete is and bookings bit came strength. our to continued that middle business mixer, order in based we team more that tied closely last continues strong concrete the in we that ProAll of residential World the the they're here a from investment see anticipating acquisition U.S. one side. good as of back see and construction. very closer backlog good backlog well. that infrastructure to In That's states. on they

business. because indicated Europe pretty from -- a driven by comments, as Fuchs applications. slowdown scrap soften but last mentioned in standpoint, the bookings a did call, did in are we see ports historically, we our position as Fuchs that And see Europe levered we modest Fuchs. in backlog principally In about we conditions they and that and metal. to decent other prices They're diversifying, our scrap around again, I in my the decline somewhat earnings last and talked in was metal

and business. backlog increase still history weakness backlog to against and to our overall year-over-year healthy Environmental grow. there. or see remains to bookings tower in then some our orders, businesses, And with levered position. We in But associated environmental a more continues again, more globally levered RTs Substantial Europe again, did Europe. both but slowdown in

business. of our see modest slowdown in did segment we the some in So that bookings

show And launched the taken strength. and that CONEXPO our (ph) then strong last at had there, market product business finally, several customers We Pick India in to Carry of strong. week Indian down in just show bauma [front-end] delivery I the was & our customers continued were Australia with product. met dealers and

So remains again, our strong. and pick business carry

healthy we're Michael, bookings. seeing overall, So just strong

to on and the to I backlog this important because us. see and we'll of with it's time. factor to seeing and The other experiencing If that push around begin begin we're backlog the That's important we we're report outs, that seeing we're outs. think not that cancellations sign just at continue push for the first given level cancellations not move is

strong will as bookings, the that there's we're that, XXXX but So backlog, first look out indication. the MP in great great be there, uncertainty into seeing acknowledge segment. We macroeconomic despite visibility we

MP continue And XXXX. strong had in to they've be supply expect price them cost terrific a and our to environment, chain XXXX, XX% in able have to a of OP continue disruptive too. and to margins. Michael, represents neutral we just in expect for deliver add the year And and they the still year. operating to been They're all expansion a operating They margin on that, we of income, disruptions

in going we're things new in and invest going development. going expect digitalization We're to to again and are to in that. shows and And to also so, to people going business. we're invest but trade and like this traveling product them in invest expand, invest we We're

expenses dollar also And marketing have unfavorable British the pound from this to in XXXX. they And the so some to going U.S. business some exchange there's well. will as foreign in be

to will that done also XXXX. SG&A absorb -- due So some they've and we they in did just acquisitions additional

expecting and So continued strong we're performance MP expanded from margins. financial

Is on thoughts close valuation that on disadvantaged compared that the is shares? you. unit I Terex sheet a And would you with anything process helpful. do the Just materials balance mean, Could your at look repurchase How try Thank that. notable just market, your those processing there use a structurally any you comps to be to trading in when discount. Thanks. discount? to follow-up at material peers. you public

Thanks, Mike.

broad Some questions.

continue performed of we didn’t job and at portfolio time the throughout I businesses our of think Day, started margin of our in that portfolio, part to driving we have great it’s growth that in we'll Investor doing look because if during is terms expansion. that revenue MP, you better consistently explain

foremost, We dividend. disciplined organic in dividend. invest our we're capital of to the continue of invest that growth in to dividend. we're allocation terms to and XX% In announcement I strategy, saw going everybody increase hope increased going first in

continue to that. do we'll So

invest We have M&A activity. the for ability to

being we'll there of authorization with area. And more So look do ways our shareholder and that's did offset increase Mike. focus dilution value the there stakeholder at is repurchase But can in anticipate a we'll that share to for so much, we looking associated always focus the to you now. we're continue enhance to incentive then definitely comp and right and corporation,

comes Our go Stifel. from Elliott next ahead. question Stanley from Please

line is Your open.

bringing question. morning, way really, in And XX%, it's what's say XXXX? at impact the guys either coming inventories for the the kind some replenishing over you up dealer year? time, Hi. in have MP do to everyone. Good congratulations. inventories mentioning you same that fleet are in age the much a you on question down of across or of and on channel, aged will kind of dealer of low fleet think maybe your into I could spill the the guess backlog, Quick backlog an Thank And

A our So, have high thanks year, at of historically delivery for you go is stand look And lot the $XXX backlog our into XXXX. associated chain. with supply is if in We Stan. we coverage already million XXXX. that for your question, as do for just backlogs

do side, I inventories seeing are think on So dealer growth. believe and going low, but the -- help, is to this MP again, strong replenishment, I dealer they're

the products contracts. distribution of agreement goes as soon channel, as so, do rental a in, type lot XX% especially They And in to purchase about come that rental. business,

ownership. are it heavily customers from to it's rent the converting being So The utilized.

we having hard the a inventory. so, time dealer And replenishing are

strength part that's of think I So the there.

then with the of talk on the of terms the the And of as fleet even the AWP on But meeting going has to that. needs think go is constraints we delayed been is side, cycle clearly, specific replacement in industry about rental and more increase business, one can and has that GE customers, the benefits the XXXX replacement comment XXXX, we Stan. specific the the we fleet which that forward, beyond age -- increased, of to

you Perfect. touched it you part at out the from high was on I from announcement thought apologize you robotics of first very playing interesting. put if how of level that earlier this Could the you've call. co-investment kind this the But up I week, will talk think together? end this

Thanks, work. safely Yes. investment efficiently equity that we help our robotic biggest to part with to for everybody an that. hope of really It to in see conduct But opportunity made. provide us electronics and customers the and is had co-development Stan, solutions I and wasn't the technology is

constraints, forefront If to you there's safety the job skilled robotic Electronics on sites, opportunity through technology. an about enhance think and trade is of that. labor constraints, labor productivity outside the

reason you our the safety. opportunity with take together, the we that's solutions end enhance, the made you and the machines if potentially provide again, investment. productivity capabilities to their capabilities market to their So of And customers to have existing two our the married

forward. going We this technology in as that enhances customers investment offering the our provide view that an solution we

And potential going investment what we're this the co-development about excited excited excited very of opportunity we're about made, the forward. about the And we've so, agreement.

lot Yes. luck. I on thanks like best and much side of of It sorting from the a And will sounds the there congratulations guess very MP But a for perspective. be opportunity color.

Thank you, Stan.

Stan. Thanks,

Wells Seth Our ahead. from Please Weber from question comes Fargo. next go

open. is line Your

wanted you that XXXX a operational Monterrey margin? guess, AWP this little productivity think XXXX then year? that get morning, more you margin around and just XXXX? expect that to and just how your first the do these -- that Or clarity should flowing should at bit Does quarter disruption exit Good does sort March, the I question Hi. comments fully the impact around John, bleed about for fourth benefits? of I did a all to, everybody. and reflect guess through Thanks. is, XXXX. to we I into continue level And move

Yes. can longer-term start you. that Julie jump on I'll and then side. in you margin Thank

So the quarter. the we product permanent the until disruption, began number facility, of We a in And line it first significant start moves. quarter. had to really doesn't Seth, move into first

First this. in process for now, i.e., the sides impacts disruption, in GE the in of case, with plant the But have transaction, going detailed has receiving And manufacturing got a the the disruption this. is which to done have They've associated doing plant. some we're both chain is supply in some to environment sending efficiencies. this Monterrey going

and outlook. that factored will XXXX into we've take continue so, And during place It into will our XXXX.

of up operating is of in we going XXX the to closer we points running when XXXX. we're indicated fully margin really back we As ultimately to it get improvement add about our remarks and basis as spoke half during as Day, and Investor

now excited. the on time, for busy The current product there investment our it's that's well. moving start be and in year to lines has going outlook. of gone the It's benefits and time the on budget to So the again, They're that And a it's it's we're team. making. construction reaping

just Seth, follow-up to from And were some their on basis QX the year. points margin XXX The last AWP, up of margins commentary.

the volumes they expected. we sales QX, margins nice strict as and really So production impacting initiatives results expense cost the due had And to less and we days, exchange unfavorable continues foreign geographic business disruptions to supply mix some about chassis AWP. favorable last time talked when and disciplined had and at in and were look fewer We management utilities pricing. reduction had really product higher and experience And bodies. our

utility and the I And XXX shutdowns that with shutdown margins did cases. more their by in and to facility the the of their to so a guess, efficiencies maybe as temporary they some in fourth and But Terex, liability the double had profit job change than product things expenses quarter. that points unfavorable we COVID operating great increase business, had as due some the weather-related team well were really manufacturing newer,

So team. nice some pretty we by performance had the much,

Yes.

ones Thank Fuchs Okay. seeing That's on and in is the called a it in And follow-up. then European business on really the quick access color. out? -- business you out you think you. the helpful called are the that Europe just some just tower softness I well? pausing Is orders the Or business. as business, in John, crane you

historically see in the did strong in on the modest But strong orders still we AWP said, a have We slowdown quarter. -- side that backlog.

as the go backlog a but So little XXXX. strong bit level, moderation into of we booking on

just And your that's around to that's comments clarify, Europe. --

Yes.

Okay. Super helpful.

you it Thank I appreciate guys. Okay. very much.

Thank you.

question Please Raso next ISI. ahead. go David Our from from Evercore comes

Your open. line is

Thank AWP guide of in for got Hi. XX% year. right? You've for that time. this the you sales the ships backlog XXXX, With the

clearly, that of we I look supply of more I this chain in want factor broadly know to basis have risk, of back But risk a differently about, a order transition. the Mexico -- we books chain to mean, how I on I of it's is points quarters the to go drag factor, worthwhile. is, transition. more though handling sure supply I of as the gating justified The trying should in a supply a this So challenging just I'm up environment inefficiency, maybe And past. XXX year are Mexico for becomes XXXX, couple that improvements a in say. don't question the than margin out-year make

to are not how handling get books we production? transitioning it's that questions the history? the be just time we order how And XXXX do two AWP, more comfort again, versus there, again, So easiest

David. Thanks,

And done business. they've terms The level the that part it David, again, highlight just it million plan And out utilities as actually total are in of of is in we highly the times. booked this remains given year. that especially than more business, change -- our backlog this to chain of So got about of we've the wide supply Genie factor. of the appropriate Genie of -- order gating Terex thought the of some terms XXXX. the in was indicated, customized for Again, then Mexico, where $XXX as into XXXX units we is Monterrey, it's book, into company well numerous

time, closely it's improvement as taking confident get plant the up business. to disruption got why manage of XXX takes this and important operating to at change, it, just least receiving mitigate time, we deliver for of the and going to highlight chain time and It of on given that level plant then That's over margin it well the to it's us up as level get why ensure why. of will sending the possible. immediately? getting some appropriate that the thought explains aren't of points extent We you up to to of -- the material plant, and the or plant stabilized operating, maximum the the magnitude the basis the bring we've for was quite and But margin the supply and margin level Genie

touch And the let's the on differently can you year it than you're order handling out past? or how XXXX books, the call

terms in of So the…

with don't XX% up start usually How early the the the guidance. [indiscernible] year -- order opening of your I mean, you earlier window

David. don’t We [Multiple right, with for percent year. usually year book XX-plus the the You're start Speakers]

we in now, customers, we right yes, the again, AWP customers frankly, -- working the than with -- segment, deliver. than more and can So we're currently our are we are asking more

if our in models, constant let supply we we're in them with see know. chain customers improvement dialogue specific by we some So

is we're taking XXXX. necessarily that supply XXXX. And but chain, the that because to looking product of able that’s is are so deliver not Again, XXXX, the we in of are to the David into forward orders customers most when

time. the for you Thank

David. you, Thank

from question Deutsche Bank. Nicole next from DeBlase Our ahead. comes go Please

is line open. Your

Yeah. Good guys. morning, Thanks.

Nicole. morning, Good

Good morning.

Hi, Julie.

the this to backlog all aspect of pricing XXXX. of uncertainty that the just Just around on the How guys inflation? that maybe to One David you extends are more question given that started. conversation handling continue

call making a what look like, we And in best the that's our is of best So estimate that we're the Speakers] just make going answer. [Multiple And we to and estimate.

in lot is the the is a has some It's point -- pricing pricing with associated wait there And until confirmed a price that. future. of not customer at like there's to

that's correct. Yes,

And XXXX. working follow bit talk you free then, to up, Can Understood. to for with cash Okay. respect the guys in a about just expectation little are capital? embedding you what for

Thanks, question. Great Nicole.

number in it then inventory net and expecting improve improved So investment reasons: flow significant we earnings had income. in free second, XXXX. to in for improves one, our two are we And cash a XXXX,

for We expect XXXX. term in less XXXX much XXXX the lower in to the additional absolute dollar in than support had capital an inventory working in additional we volumes build

experienced So than into efficient we going we'll be more XXXX working capital in XXXX.

Thank you. I’ll pass it on.

Thank you.

you, Thank Nicole.

next comes go Steve from question Our ahead. Barger Capital from KeyBanc Please Markets.

is Your line open.

from just XXXX ship level us And you unconstrained? Thanks. being range the revenue can what revenue limiting how you you each provided? to much With tell factor, could segment the chain supply deduct did

it, Steve. So I'll take

billion you XXXX, but If year the billion stepped about billion near year between supply across modest for up to just performance. in you half macro revenue think range. and anticipating improvement, of guide the (ph) our -- look level and We then not back $X.X] were were [$X.XX we and $X.X the historical type between billion at of $X Terex. at to We're chain it the anywhere

at So run the on again, that's rate, into to XXXX. managing constraints. if you current current and based look estimates quarter extended our kind fourth of we've the that of from kind And suppliers

is, challenge to constraint move around. The continues this

on. And so and suppliers It's predicated, they really and the supply we to, the as XXXX on our terms rates. built best guide current what our chain. backlog -- what on predicated The see, can our with can conversations estimate coverage guide in of is in you we've our deliver outlook based is that's

XXXX before, the the really back you gives in In that's the governor as terms it's years supply segment. and above happen, But especially Julie? today. of were can for go levels, -- and those AWP again, what chain, of we significantly could constraint the

we in $X.X add have to going to And $X.X consistently. billion I running for we to fourth Yes. to been quarter, at go billion. just billion were able that up $X

is so has chain guidance able $X.X what been this deliver. billion for next year supply billion, consistent to with And is our to $X.X our which

could understandable. capacity about totally given to trying the you guess in thinking and above footprint to comfortably environment, how an I'm unconstrained you're I is, get run billion what made? $X No, shifts you've

Again, -- being add our for globally Monterrey, capacity, we yes. future, is we incremental competitive as position what the but Mexico think it's cost alter and fundamentally from -- I competitive forward. does it does important, In go some

time, There The you at Monterrey, chain move some Mexico. the in if navigate. produce support. that have are to our definitely in AWP constraint in that Redman in labor we with constraints the that higher opportunity we're levels. in labor back as have leading in produced would biggest is specialty we've we segment, that the well supply go we've again, but could have certain MP We area, our markets if So would segment,

now, the but the business, of what the suppliers giving chain for both to there So on future yes, more, just the in the terms given lot there chain work future doing think And with our is in in consistently, we about quantity. of really that opportunity our it not is the we continuity getting as i.e., add, opportunities supply delivery, indications. also those might with continuity supply of to footprint growth and about deliver supply, them produce a on-time I future is the we're need

quantity, continuity both the supply of but the well it's is in So chain. as base supply as XXXX constraint [indiscernible]

partial Redmond, move to we've the just be moves Redmond. to in some to add production of as Redmond, forward. help still shortage It's several Redmond moving with from that, from And experienced labor lines a going in facilities we there'll some just Steve, down

John, videos. how in more interesting enhancing the Terex Got but hear safety technology. be it. imagining embedded productivity, projects? And the specific can I you then about just one It that seems you're quick like (ph) one. I you and And on [Optronic] watch

Yes.

So did mentioned, ZenRobotics. as Stan we the

the So sorting. some There that there. in in be was terms may of taking two overlap

lift truck, enhancing Optronic, amount opportunity think to of the a cut that, you were enhance of boom the two labor of trade on skilled on instead skilled lift scissor bucket boom or can one. an to or lift is terms back in a In or women a operator about reduce a treatment in a

a labor. contractors some got biggest may advancements to some you, put and They needed constraints some concepts. we into that ideas tell have -- we've EPC of technological one so desperately bring center will because is And and together, ideas. that be the some got their and two construction opportunity there the We've concepts, it's real

productivity it goes, So improvements we're labor improvements. opportunity but to trying And to we're we going safety real some provide We'll be see and there's there. where think excited.

next question Fisher UBS. from go Steven comes Our ahead. Please from

is open. line Your

mentioned, mid-single Thanks. But the and about a in your for John, volume in of growth to Good lot bookings trying you Materials get revenues Processing for you backlog. I sense up guidance just morning. segment of guidance the the XXXX. the the a the that only are I'm have digits. embedded strength know

doesn't do on big drag seem like guess guide. it presuming I there's much are you a volumes up revenue So pricing, some FX the have unless the

deliver, embedded that So don't just how think know maybe to just you're won't it's I taking it the volumes if supply orders XXXX? allow about to chain there but for the

price throughout would I the year say dynamic throughout been been MP question, that XXXX. and [indiscernible] they've So business neutral has the

have in job expect of couple a them more done of to that nice XXXX. exchange that. a to offset really than And And points so foreign We expect would of XXXX. by into continue managing we percentage they've and volume price being

comparing comparison there's guess, curious, orders now year-over-year, just this restricting And fourth on there frame helpful. the no Or That's extent you ago? on quarter, time in to what the doing meaning, weren't a then the at bookings that apples you I'm Okay. it a are maybe we are bookings I AWP really restriction versus oranges point? is year fair to

in the booking good question, both been It's a disrupted. have Steve, segments patterns extended because of really backlog

have our well. And as utilities ongoing so we customers and customers, distributors continuing Genie MP discussions with our our

be weren't the case and take what AWP, books of can they'll open in open ability the clear very So and to order customers timing. of to, the commit the it's what some orders, up. to commit In the we we with MP, of case can't the

both the assessment a so businesses. booking have been And historical disrupted that fair in it's patterns

activities discussions we of of case order national result the in And accounts traditional has a from flow. ongoing it the as continuing speak. with strong backlog, Genie our As the disrupted

John. Okay. Thanks,

you. Thank

you Thank

question comes Zakaria from Tami next Our JPMorgan. go from ahead. Please

is line open. Your

Hi. Good morning.

Tami. Hi,

let's demand, much in near Hi. can fixed sometime you see How question my say, on in of So you Should us future? is How slowdown some SG&A unexpected is, versus dial can are you? quickly SG&A? variable? your first remind you the back how

question. thank Tami, So you the for

the SG&A. the a significant will we And AWP forward. taken to done and SG&A nice in as costs last continue has know, business we've really out of years, think I over you the several SG&A, managing manage historically, going job business particularly

in as So of terms time, this we some There will -- invest have we, product the increases, appropriate feel types those just I digitalization, to in of of new development, that it's in of trade product mentioned, in like terms -- shows. be at terms business things initiatives.

didn't of quarter traveling due COVID. some to this we them that first are XXXX and three in people have have expenses We

making continue prudent prudently forward. to going we're investments, and SG&A we'll manage So

your price very That's neutral year, it going line, from And down it. pricing assumption notably you helpful. then back cost to embedded costs like raw the last year. in have your top Got come for but have seems material some

why positive price-cost wouldn't you So in be XXXX?

So the let's question. for thanks talk about -- of all, first

Let's talk about costs.

inflation overall supply So in first are seeing the all, of we still chain.

increases. with So are our coming suppliers still

chain. still costs an through into increased things this at going coming still though tiers even point time. Overall, various seeing of the inflation certain work be to while may So We're in a there like XXXX that are the HRC it takes supply the for down.

see prices coming don't we down. So

offset. will We

very transparent Our goal be with pricing neutral the according year, to for cost and we're priced our is products and to we're customers. that our

you Got Thank so much. it.

Thank you.

you Tami. Thank

question Suisse. Credit next Please Jamie comes ahead. from Cook Our from go

line open. is Your

XXXX? quarters, cadence the what for I be we're about price cost anything guess and [indiscernible] XXXX. Thank drag then One, to quantify a margins of to on side, year, understanding then be AWP utility half Hi. price a versus quarter. continue about you. And does that? you utility said was in Good And that in the understanding cognizant half? nice the on when my is in Can throughout cost but second your drag morning on thinking second of there -- margins first just you question, the

Okay. Thanks, Jamie.

business this First really shortages of were The chain by was yes, all, the especially utilities chassis year. impacted and supply bodies difficult.

in below we utilities margins have as average the XXXX. the that so been And said, segment

margin. XXXX, utilities to the along improve, Genie into margins the Going we with expect

we margins to improve. this So expect overall segment

et first increases expect at we will cost, we're we will price have In year. some terms second the this come balanced perspective, that first cost pretty from be throughout in that -- the half, have a half But second later that like of took half, at cetera, same. quarter point to QX. into the pricing much the We'll relatively time through in

Thank you.

Thank you, Jamie.

last Please ahead. will from question Our come Stephen go Jefferies. from Volkmann

open. Your line is

have long of Most units? of guys. uptake backlog, an of electric it Genie But Thanks, what and in those of of given John, mentioned goes. my you Are Hi. sort answered. XX% meaningful a been questions your you're product you option. then I has MP have that XX% follow-up. I how I'm think seeing And quick electrical curious seeing

we our accelerate we that part designed interest as year electric new the out of new especially bring out customer out in their it they Acculon to in as out we bring investments really backlog, electric. of terms electrical the machine yes, products again, electrical ICE options seeing forward. say available improvement new In a application predicated not see we meaningful. help the transition the But business, MP, the I the whether were or case to as both across In categories. going as is last to we it's are on brings what the power goes a engine call with an lot products of some improvement And main or as was continue industry of out an side. made goes I that grid those biotech product, you'll is and and go into or think in it's would to what offering

So the see substantially backlog, think to I not I an we're more than over current going electrical it time, increase in the historical, think different in of products. but

for will few of Terex be think is guess next costs? more the on, margin headwind I follow it there accretive And development that's or and a to Do because over years, of margin presumably, event a you startup sort transition. some

development SG&A. costs, in really in of development start-up our R&D our those and in So and We the are capture ongoing terms captured our SG&A.

in there. So that's

electrical the occurring engine it's things is uptick are over costly One or hybrid of hasn't time strong than that the that, the combustion internal the is as models. part and why reason been options a more of the

as down As and the we curve continue come of more over move assuming that does technology, again, down time, units globally that adopt long-term cost specifically be which you from the will we will battery for the the -- comes much cost is margin happening curve technology. more margin now, cost around But and technology cost of it down right standpoint, It our that affordable. that see those the a and to pretty down assessment those of is products. as the come cost more believe electrical are battery curve, battery types industries neutral. And we

Great. right. it. All Appreciate

Thank you.

questions today. for like call for to back Garrison turn closing remarks. I We are out time would John of the over to

Thank you, operator.

you additional to for Thank follow questions, forward quarter. again, seeing you thank with upcoming you any in or interest please your for up safe Julie, the you in the and stay your have If on Terex. thank John Again, And look interest Paretosh. Terex, shows Please stay and you. we healthy. in

This you concludes call. today's your for participation. Thank conference

disconnect. may You now