Terex (TEX) 31 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the Terex Second Quarter 2024 Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jon Paterson, Vice President and Treasurer. Please go ahead.

Good morning, and welcome to the Terex Second Quarter 2024 Earnings Conference Call. A copy of the press release and presentation slides are posted on our Investor Relations website at investors.terex.com.

and will replay our available the website. addition, slide be presentation on In

by and which Financial Meester, and are These X by results Simon We those joined contains to to greater the turn risks SEC. President safe remarks cause be Senior filed Slide harbor President implied. Q&A. Please actual prepared subject expressed in the Julie statements, from that Vice with Chief different are to our and are which Their Chief presentation, Officer. forward-looking of materially will followed reflects detail conference Beck, Officer; Executive earnings call in be described material the risks or our could in and statement. Today's reports

information, company's can materials. Please evaluating to useful In addition, I'll which conference in X, we is and operating non-GAAP it measures Reconciliations turn will the for be these found to Slide call the over financial in turn be performance. non-GAAP Simon. discussing

I We at the do and same morning. to time. Please recognize dedication continue the in customers, for Thanks, our want quarter, and other our to team healthy and and our Terex. X. thank I interest each company safe Jon, extraordinary commitment to best be strong closed stakeholders their our would people. for their impressed I your by another what's to our to to and members passion while and welcome our Terex call Slide appreciate like to good keeping turn first and earnings and everyone team

billion to execute, delivering deliver on and posting revenue significantly achieving of share make five company, am into implementing grow of $X.XX. I global long-term our adjusted improved EPS stronger performance. adjusted even company a level, the earnings strategy another full that Terex a we're future. We're high and perform years, of in to $X.X per past strong, which Terex our the range generating of innovate to near-term team our transformed quarter, of strong objectives track year agile continues Over financial we the $X.XX to $X.XX, proud and at in an and diversified,

a solid Turning GDP spending global backdrop is continues to remains very macro the playing mixed We expectations for set to to of mega believe out certain We're June. recede, monthly by regional ramp-up the still of in outperform Terex. X. and Construction what economy, offset on and variables and a spots soft continues long-term high a projects. inflation we U.S. local resiliency more Slide economic decline than the seeing of are including like

which was more shorter highly expect U.S. customary as them we patterns. I indications. of management. Overall, U.S. customers to are inventory rental disciplined more rebalancing seeing more economic the the antidumping normalizes, ordering operating situation by uncertain Our European further interest while renting less conflicting predictable machines and lead position outlook market like we rate are are precise across customers That the remain market as demand times The to the allowing EU, many of with return our said, remains our And their recent is robust. dealers clear MP, capital are decision. their and the enhanced in inventory In are more managers. environment

as market We expect to outperform situation the the macro unfolds.

is long-term centers, by to outlook. by trends Terex believe Latin Southeast This products. Please sustainable technology continue being bullish dynamics growth, America U.S., turn the with and from XXXX. and to to infrastructure to and We as be EV levels others, investments, increased increasingly Slide long-term on Inflation Act Reduction anticipate is opportunities record airports, onshoring driven expected in legislative strong manufacturing our also bridges to and We activity Act. This such investments, X. is semiconductor battery more and India, poised from market of XXXX driving CHIPS JOBS power consistent Act, mega driven and environment data such plants, and to advancements for adopt roads including infrastructure the federal grid. as from online mega our railways encouraged East come Asia, markets We projects Middle the remain investment plants in and emerging the see and projects

expect baseline business Slide top while on to optimize We current to innovation to our continue our X. turn driving of growth operations. Please through continuing

for Grow underpins and our strategy positions accelerated Innovate financial well Execute, and strong performance Our us growth.

effort portfolio, very look their in markets. the strong makeup at businesses, of businesses strong did fundamental are leaders job a are My portfolio respective position to our that We a the so of in up we have clean you great leading Terex. [indiscernible] a when

on in the strategy, to comes costs, innovation, and than help more $X on, in make share it have second done track of our than plans to million manufacturing system we're implementing predictable. later per principles pillar ensuring sales focused earnings the I'm alignment for fixed $XXX cash our and work free that financial think in about Terex of of flow it and we in ways. like execute more more reducing and proud broad consistent operating performance that row. When around Now a deliver to we a say year two our

our in are technology have is of something This past leverage products to introduced deliver XX% to which sales proud. First, the how particularly more related years. Over three our to do customers. we are of we that externally value we

be pipeline products customers' will our to We to have successful. new customers that market that exciting bring more will product are increases more our continue using successful When development our we new ROI. a very equipment,

make in efficient to technology leveraging and streams flexible. investments automation, robotics, we're more more us internally, work digitizing Second, making

of us make last and market dynamics. And least, more not continuously growth. to map but more road resilient competitive Our regardless

our year. strong Hegarty, And this Both is revenue years now generate a looking AWP past margins. billion to several financial leadership of the consistent Over now are strong and when positioned layer to X. are at at grown business Group, businesses Pictured performance. purchase well under when growth. Then to posting is you truly is accretive fundamentals, processing $X transforming its on multi-plant $X.X diversifies president, Kieran further electric fully the ESG, portfolio double-digit a CAGR Terex' Solutions first billion operation. and MP the market the here is long-term with turn about Slide for performance. growing company. Please to announced on track which in minerals recently has agreement operating and the We're or our Environmental

was building its customer, Our construction requirements met materials, in products sustainable that conscious. a for solution leader a road was building and eco output and looking

and noncyclical a excited market. welcome over business to real-world great recently purchase transaction financially announced They reduced of about value and proposition, the portfolio remarkable the value accelerates We're dramatically a shareholder fast-growing boxes. ESG, the long-term largest output improving in privileged of team accretive X. the family. agreements to the with and Terex design let material rates. Terex' and all recycling in our business. And soon while that, with and where applications. Slide value the very adds emissions The Julie. ESG to Our This acquisition to checks have throughput tangible consumption, add tangible truly A market-leading It in example Terex synergies built waste diesel feel the growth. it me shape Terex to history, turn we

morning, good everyone. and Simon, Thanks,

Let's look Slide XX. at performance second our financial on quarter

efficiencies quarter, into remind last like growth dive XXXX primarily and that of to this operational results, second year. sales executed our the historically to due everyone was quarter I'd time Before strong I a

replacement X% billion, equipment were approximately rental offset a rest with Our with by the net strength product decrease segment remaining AWP of sequentially. sales in sales declines up year-over-year AWP strength the slight nearly and activity world. We North strong. year-over-year, experienced net XX% our $X.X X.X% were in America, of and in cycles

continued as product and we Our MP was declined the ramp European manufacturing inefficiencies in segment profit softness XX.X% market. up facility. Monterrey impacted production the of to anticipated due by unfavorable mix in Gross

Our $X investing operations million costs. year expense prior consistent was to SG&A Oklahoma while approximately expenses previous severance Income year million an XX%. increased year down to the the relatively to sale prior deal-related year's operating prior from primarily charges. with of and of Interest facility million related other year. our gain $XXX the from to million million Corporate is $X for due margin favorable with $X SG&A comparable from when year, the expense this million was are onetime the City last $X adjusted and $X prior year,

global a million. to disclosures cash share. nonrecurring our was We investors performance. to with flow the effective quarter view operating $XX due adjusted provides which was excludes was of XX.X% of of state The XXXX. reversal quarter $X.XX tax second rate to quarter compared valuation XXXX quarter second allowance XX.X% per Adjusted second of believe We tax GAAP Free second the $X.XX second per EPS, of items, a and quarter our in EPS reported the better in unusual the EPS for share. adding

onetime sale The City quarter included of our cash second free the flow XXXX the on Oklahoma of facility. proceeds

quarter as out bookings and to expected. Slide Turning backlog XX. The played on

Our $X.X our current is Xx at backlog norms. historical approximately billion

We highest bookings first times bookings to in the fourth to the customers seasonality as was including backlog expect our lead transition stabilize, and patterns to normal returning continue customary and quarters. AWP

is backlog normal X.Xx QX segment approximately AWP Our levels.

backlog higher Our also pre-pandemic slightly is MP than levels.

MP For $XXX to perspective, around for $XXX backlog normalized million. million covers

our XX. results. to turn Please at Slide look segment a take Let's

line the past delivered Over in operational years, growth the MP's double-digit and higher top few excellence margins mid-teens.

demand protect ended expense with including action schedules, turn quarter Fuchs impacted further sales dealer second mix AWP nearly Sales to from by excellence Slide was North market in $XXX $XXX factory unfavorable solid quarter of reported reduced and reduction product strong margins, pressures operating performance. continued a by inventory work disciplines. of reflecting delivered XX.X%. with in margins aggregates cost million, in sales volumes second our The business. MP with is XX, year, quarter, million. Please primarily up details activities. operational OP German-based of America. with the MP well and Material to MP of operating labs Handling by profit due MP to million. business in last strong which demonstrate taking performing change million, our the $XX offset in to higher our For dynamic rebalancing of performance backlog in reduced We the market were partially and $XXX X% our profit

In backlog AWP at sales Oklahoma when facility. for X.Xx quarter for XX. year and margins year-to-date with the adjusting a higher is basis. normal approximately onetime consistent XXXX gain fact, a our turn AWP prior up billion, for in than reported to $X.X quarter. Please the is of manufacturing second second X.X% AWP in of inefficiencies were start-up sale Slide profit Monterrey City levels million. recorded $XXX on Operating operating

$XXX and a ample $XXX sheet that million liquidity net grow through invest cycle. with have us to to We the continue to very enables healthy million. Terex balance has

sheet purchase return in our well expected capacity balance Our significant provide capital to to generation as free agreement to shareholders. continues as and strong cash flow ESG

CapEx to dilution. $XX expect the anticipate a next X.Xx, deleverage. step which the debt-to-EBITDA with and benefit of our midpoint target we repurchases cycle, transaction, facility. about be As to to through largest offsetting cash free for July ESG free expected close and XXXX, dividends, through net leverage approximately million we would the conversion year we our take capital X.Xx returned enhanced shareholders planning We on will to XXXX. Through a a the equity and flow Monterrey is sales at X.X% further in of to expenditures has cash below this of million investment to related our utilize compensation or We're share $XXX year XX, essentially position flow Terex down

XX.X%. return in remaining capital shareholders. on and strategic initiatives our authorization. approximately strong a our remains reported our have in business to Terex under a continue position to $XXX We of investing share million invested very executing returning capital repurchase financial while We

best of we complex and outlook. are full change Slide Now that year macroeconomic this to today. results could positively. XX With many or operating geopolitical said, as a variables represents environment, our outlook our realize is and It in and turn to negatively with important uncertainties estimate

not outlook ESG Our activity. incorporate any did

Our has in AWP to in business. updated sales to of strength weakness forecast billion our $X.X $X.X business, some range the MP the been helping with billion offset to

than return the third seasonal continue be we higher expect to the we sales second half first fourth higher half more to For delivery as quarter the patterns. quarter overall, was than to sales customer the Terex slightly

We XX.X%, are performance. margin year pleased Terex our operating year to above XXXX overall full to to for full increase of XX.X% a solidly our range

second in We the our half of $XX and per expenses million have of quarter the corporate lowered year. other

for We million $XX expect the expenses other full interest of year. and

deliver cost a earnings are to we This $X.XX per in out is addition, to to tax expect and expense EPS outlook XX%. management, on rate basis. our the year Due prudent $X. an we row operational lowering an execution, In is of effective our strong share second $X.XX range to adjusted activities over

review segment Let's our outlook.

the the to sales MP for year, expect operating consistent $X.XX due slightly margins sales, of from Sales management We with to while will third margins quarters the levels to be actions for QX fourth with XX.X%. improve billion range to expected and XX.X% be QX taken. in full billion to $X.XX are

be For margin operating AWP, range sales the we to XX% $X.XX of the XX.X% in expect billion range to to billion, our and XXXX year. $X.XX full for

sales the first to than quarter half, with be return than shipping the seasonal normal quarter third fourth second half We the expect the as lower we to patterns. higher

We margins than we new our inefficiencies approximately of in be moderating to as basis the higher in benefits expect abate, second half XXXX realize facility. and points XXX the

incremental full a anticipating are We year AWP greater XX%. than margin

Simon. back it Now I will to turn

we're and very ago, company long-term will Thanks, excited live alone Terex Slide now years future. years ago. five Overall, our a is XX about positioned, well Julie. than turn to different I Terex XX. is

competitive in industrial strong a not more and segments, but have to and different from about cyclicality agile excited very Terex. system been highly are a the the Expect portfolio, years team. I'm proud and lot a we strong less We leader to to are last to blessed lead company, incredibly vulnerable engaged more this diversified least, trust I'm operating come given many feel a ahead. with and

to Operator? And with it for like open questions. would that, I up

question Stifel. first Instructions] will Elliott Stanley [Operator with Your from come

pricing of that near-term Can of across talk portfolio Europe context are been of how all couple some strong? you in past mean, -- you're with have impact the so with some how thinking general the guys years of about seeing really construction about market, I you the the does the and softening

the for Thanks question.

So aiming yes, price Steel down, cost coming labor stick logistics, I we're hydraulics, costs. to value-add of of electronics but our for. still signs very showing like mean, we in what still being target the neutral. inflation components much cost There's inflation is That's and market.

point an cost price journey. neutrality So And at we're still in in inflationary as such, striving this environment. for we're still the

And terms kind and in seeing anything you're I on today? softness is And America? a inventory health seeing of operation. of it more is of to from a the there's lot business, also understand you of and curious, reluctance, sort just hold do of channel I kind the a where some then the guess, Americas? Europe? the are of the MP Great. a of the Are think to exclusively you in an kind on own to But these channel then rent North of what in curious in

rental and purchase little six North lot interest say, to inventory holding less contracts. their complicated. the that the and bit a And done. a to Yes. on necessarily, -- Great question. The is see the going there's is productivity rental few less typically, rightsized a because we -- what's again, it's And of we to And we don't rent mean just it's most Well, sell, bag. America, let's here a in a within in little lower by units the lot been projects. has it's more general, think driven. fleet now for is there's think is rightsizing end-demand months with conversions. productivity. that are I for it. In see especially we problem, Inventory, happen that necessarily customers a much still has bit they been mixed of what inventory Europe, what's to through just very rates. it's We There's convert, months MP, think just happening more a issue is not In just of

going you for America, North a if interest what's rates. and will, with rate, happen to mostly interest caution it's in So anxiety,

fleet we high look very America. at North convert here. Before story still utilization, of a are purchase. [indiscernible] to the still There's in kind our units But of That's and America. lot work working North if next they in

Your Cook Jamie will Securities. from next with question come Truist

guess Nice questions. quarter. I two

your and an you're margins target. Your than margin greater better about than is which talking XX%, incremental

materials To to help -- second And we improve if I'm a incremental margins? what's down Monterrey better what your story the business degree So think just longer-term what my that? I there's here? And on into mean, is wondering seen the I've continue degree processing. I driving implies question, just do then degree structurally -- guess sales do business a what never much. over-earning I'll stop declines I or there. XXXX? I've To XX%. never think guide as you think seen down could So can this

Thanks, Jamie. Okay.

the which So start initiation fees, our the was anticipated second million, abate. year, were quarter really they margins we quarter, facility. City about in Those Oklahoma we so Monterrey they than better might when go had also for $X adjust for you to gain down the the last MP, of which

take consistent AWP. this year items out, you last two for due relatively if those were our So margins to

forward, fourth this to So the gets end and we disruption original where quarter. intention completes to facility at and less going would the expect experience the of

And those so ago. the put where in basis year XXX from second in indeed, see we point of to improvement a start year were the we would expect half And margins we margin to improve. a

we're So improvement again, still of target those XXX we margin to go basis forward. achieve points as in

question is, can there in higher my business reason the your margins XX%? structurally But this is incremental a believe be than to

be higher Well, roughly Jamie, so our XX%. for been year, outlook as they XX%, implies there's this will

we'll on go. to margins improving we as work And continue so

Okay. the follow-up And then on processing. sorry, materials

overall, our I very scrap Yes, prices, question. very lot a Yes. business for a No, the a we're there's take that in is things is struggling. Germany out Italy second very That at clearly struggling what the economy you business -- it's France we probably within a will. back handling And struggling. biased Europe, And seem of collection out to verticals, those handling are bit. biased if material the European that is and is quarter U.K. was and business, to you portfolio. And Fuchs, scrap Spain biased the Germany, example, our look because to thanks If still that if five little MP now be it's in the for the of quarter, and is most called within verticals, to MP the happening. [indiscernible]. are what calling first then coming

one in So been call signals for the we with a that are America there's and in since we those performance utilization, positive we're interest poke believe to mega very Europe our tied see almost for bit rolling grown for a overall, double from signs business Italy Italy, And down Again, second of which years, struggling. rates, whammy, months Cranes seeing know, It's the been up production then our that business, the XX% has that's headquartered, activity north manufacturing actually you little in also very, upside and market of a that is thing steel business. see is although still ] to a but pick projects the think America XX because February, our [ both is early performer just the if say we if digit you what the North great margins is other of has has would it's encouraged alone. some I has exports bottom, too business. MP, a we three environment, is to is actually for greater our Europe high heading steady overall. But been double current do landing, up probably we business the are Fuchs last the Fuchs. seems in happens than and of North reason of Germany [ us. in also for June right creeping quoting to XX coming towards will, Germany then a that plenty very are And the last the very business. And ] in book-to-bill And they are of just focused. currently versus countries, European years because struggling the And in as operating we're with business and encouraged consistently

of little bit a around a story that's MP. So

Your with from come David ISI. next Raso question Evercore

just usually you book-to-bill 'XX year, and through I'm to in the years I'm year. look backlog mean few think how AWP, rest call trying the think AWP starting year above out would be a the to you it, of to It is trying out 'XX the last the XX% I the than initial year, backlog risk the a of a huge your new X. can following where the normal into figure with about of end -- with had well But backlog. year, to right, would fourth trying just figure before even your the it's feel book-to-bill, quarter really low that, more get the year sales. And in you're to X. given lower I'm imply historically, than down even above at AWP starting

question it's I want So Is believe far, be your should in early. fourth on commitment for your to I AWP conversations been above quarter any the already reason demand. direct just guess there know the to at not X? AWP is, comfortably on book-to-bill so hesitant have all I for 'XX how know

as to question Yes. often really in QX, in quantitative, QX QX for will discussions are a that hit answer. not you tough and generally not backlog the it and it's Obviously, discussions we guiding next have first the we're XXXX foremost. the year David, started, in get speaking, very as yes, and But -- but know, qualitative data we I points, mean, then for typically just well. start

But I say depends exact well, what do question So your to is out, too to we how general to to a be, QX early and the it on is, QX. ] better would it's response that down. to all going going number [ be XXXX really for expect, us than book-to-bill pan add is obviously, --

our positive tell. slightly us it's for too early XXXX. Whether up, had it's we've customers for flat, that down, with So far, the discussions are to

now Or up can unfair more coming still bit least that idea a relativity, the 'XX how idea the capacity backlog bringing lot were mean couple question, JCB 'XX? large those pendulum these starting industry you it, in whole industry capacity getting pricing name with in it's there's we have other in clearly, a I'm just goodness is that's but much know conversations far. just in of seat the Chinese manufacturing I years of with the an with leave conversations you driver's Be to just customers up curious to the at curious, San direction. I'm the issue. of and of it. where in I swinging are opening how the went tower playing last the 'XX we Mexico, we the Antonio. so of out into

Yes. We don't share that concern overcapacity in matter. North America and in Europe for that

definitely We're Now our we capacity. our only China we stand last in story. of different in terms necessarily just management the where is of it price changing. modest a There's we're industry. an in on adding. we've overcapacity adds undisciplined concern massive speak we don't and of overcapacity can ourselves, terms And shared and up capacity, think a call, kind But to not of for

that. saying, not going So where us Is well, here? it kind haven't on what's back turn with of any it on I did excessive? they seen have customers personal discussions We

come next Your with will Jerry Revich question from Goldman Sachs.

implemented? the Congratulations like about just and Simon, French value? hit It just you competitive announcement. wanted a the your tariffs the landscape if are manufacturers on by How Union just for again talk but you back looks the if everyone peel similar except landscape the impact I'm us you if the getting could mind expanding wondering is suggested competitive onion amount, on at comments wouldn't does I ruling. just to the that on European ask face acquisition

commission that we're very by We industry the two the excited mean, question. Yes. the a players I Thanks were of ruled filed that for favorably. complaint and the ruling. encouraged

I the as found, such, was evidence commission and pleased the the think it it dumping out. very mid-June happening market, actually in imposed they with were was there that that We tariffs. European came

So we industry. encourage it's level We change. the playing right don't thing necessarily the for field. think We obviously

It -- would think this negative forward. change much mind, down just spiral. will our go that the I it in avoid was going market

think forward, we're in made, the a market price and So position was we forward. to European and to going leaders we're going that great happy we compete for ruling be continue

happy results. So with the

are the be of And year-over-year. on utilization commenting looking couple you Super. I'm looks it would just based just if AWP a on rental positive, based like shows dipping reports, on time data your the you in what company how talk U.S. about mind wondering data, numbers specifically? is but telematics still might utilization on you pricing could your for at

Yes.

statement, is are that But holding. particularly of general a doing utilization -- year-over-year. than little We projects a see utilization there. strong that in do more so add happening mega that products them if are bit used commonly As still together, there's you better projects divergence a are

you trying understand how give much AWP down deliver both year. Can us for of you a sense support provide of can do year expect backlog if to and basically to this sales the a end work by the I'm to next even

today, Terex, year. guidance. is means which midpoint, remainder Yes. the outlook, we look at $X.X we the X.X-ish It's billion kind at look overall and for outlook of another But XXXX of coverage into you hard backlog go if to to answer the getting question if have without our

X/X allocated We of to have $X.X that billion in backlog. Roughly, say, XXXX. is let's already

And X/X still than backlog coverage. are that's So year. than we are -- terms the remainder normally higher we that have the for in we where in of means of coverage July

So we to feel are pretty outlook. get to backlog we good coverage our

Now what's the going about to good how little we've going our is to too to laid tell feel and happen XXXX to we coverage backlog out. that But output early currently pan out. a that's versus

margin. stand. and you EPS the think updated first quarter EPS guide, Good restated The I

there? is right think restatements the it way? about the changes line the rest the in new of driven Or is much there how by to guided is anything EPS for of essentially, year? guide items different versus like So the It EPS seems

I we earnings in is essence, would I the our Yes. consistent take you what with question, the in provided But EPS with and agree that. adjusted Tami, outlook QX outlook.

and in close pretty what to midpoint take this QX in adjusted our you the add come EPS you out, our is. If QX call point

relatively it's So consistent.

Your final question Morgan will Stanley. Castillo come from from Angel

I go back cost neutral price to the to comment. just wanted

a cetera. rent just of longer within interest You rate some et MP, little customer decisions, dynamics broadly, perhaps the but about perhaps to more talked driven by decisions

trends Just kind curious, confidence that, to perspective as just pass be greater seeing would customers what a talk of both price you're being as helpful. able price can in through and your like AWP from of gives you you sensitivity such sensitivity in MP about

just all transparent comes transparent all along. and being to It been we've Yes. down

cost seeing pandemic, obviously, on our But be inflation out the tough very how still We there's the was during [indiscernible]. disciplined the pandemic. cost are It we coming still to story, a of We need industry. in treat inflation.

we we're as and cost I inflation, but just heavy so have in inflationary still fabs, Electronics, also see. an in an environment. in freight, there's obviously, can mentioned, very on And still pass we're everyone And to by also labor, Hydraulics, in industry. And cost being that on transparent logistics as is ocean in the even

So until... Anything being transparent add, by Julie? to just

good No, that's ]. [

about your less just be drive about of do demand in replacement the Step today, particular. for but kind of hearing at specific XXXX that out XXXX those would versus XXXX? the fleet think that question. of age would the of factors imply typically as prepare products kind thinking kind I'm you're and more to replacement What of you're kind underlying demand some you that of of maybe just the it from seeing what there

hitting X-, XXXX their market, if was you mean I of and making now wave big into all last of about wave, kind will, mark. the X-year that's you the if the think machines, Yes. a way

overall, and all say would remarks are for as couple that probably XX It's range. target. But mentioned is XX fleet I and months within opening all theoretically, managers fleet to in of seasoned very our up is there. months the age their customers, varying it's I But my a So in here replacement. coming

it to needs little peak the bit XXXX. age you be. tailwind, will, fleet supply a of But of if is a because is replacement where in there So

Your Markets. Steve will final with Capital come question Barger KeyBanc from

Simon, waiting going they're back you interest sensitivity Meaning rental what to rate and where for. Just figure the to interest points? XXX MP, your do comment think basis anxiety rate out trying for is? on conversion

to towards Yes. than Great question. answer the lending. it's soft the not I much I market is other heading number that. really maybe don't say But a that perception how so would the know

And just whatever a that's my going think takes. direction. that where if right to be -- need to or feel place in XX, people issue. That the the I answer. think more we're it XX But that's I confident get we will the XXX,

any back There call turn no I further now questions to are time. Simon remarks. will closing the at for over this

All operator. right. Thank you,

have And you that, operator, any Jon. with additional up in you the please follow interest questions, please thank Terex. or Julie If very much And your for call. with disconnect

concludes Thank conference. you. for gentlemen, today's ladies And you that joining. Thank and

now may You disconnect.