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Terex (TEX) Completes Sale of 7 Million Shares of Konecranes
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Terex Corporation (TEX - Free Report) has completed the sale of 8.9% of the total shares outstanding of Konecranes Plc, or 7 million of its Class A shares at a price of EUR 37.40 ($41.86) per share. The price is at a 0.9% discount to Konecranes’ closing price on May 23, 2017. The shares concerned include both Class A and Class B Konecranes shares but does not include Konecranes treasury shares.
Following the completion of the sale, Terex will hold approximately 5.15 million Class B Konecrane shares, or approximately 6.6% of the total shares outstanding of Konecranes.
Terex had received 19.6 million newly issued class B shares representing a 25% interest in Konecranes following the sale of its Material Handling & Port Solutions (MHPS) segment to the latter in Jan 2017. Further, Terex had received approximately $835 million in cash. The sale was in sync with its efforts to simplify structure, systems and footprint in a bid to improve efficiency and enhance global competitiveness.
On February 15, 2017, Terex sold approximately 7.5 million Konecranes shares for proceeds of approximately $272 million and recorded a loss on sale of $13.2 million in the first quarter. Following the sale of shares, Terex owned approximately 15.5% of the outstanding shares of Konecranes.
In line with this, in Oct 2016, Terex completed the sale of its German compact construction business to Yanmar for $60 million in cash. Included in the sale was the manufacturing facility located in Crailsheim, Germany, and parts distribution center located in Rothenberg, Germany.
Terex’s bottom-line remained flat year over year and came ahead of the Zacks Consensus Estimate in first-quarter 2017. Though the top line registered year-over-year decline in the quarter, it beat the Zacks Consensus Estimate. Terex raised 2017 earnings per share outlook in the range of 80 cents to 95 cents. The company’s focus on simplifying organizational structure, portfolio restructuring and cost-saving initiatives will boost results in the near term. Further, it will benefit from investment in businesses and product development. However, continued challenging crane market, lower demand for replacement of machines, weak mining market, as well as volatile oil and gas prices.
In the past one year, Terex has underperformed Zacks categorized Machinery-Construction/Mining sub industry. Terex’s shares have surged 35.7%, falling behind the industry’s gain of 45%.
AGCO Corporation has a remarkable positive average earnings surprise of 40.39% in the last four quarters. UFP Technologies generated a positive average earnings surprise of 7.91% in the trailing four quarters. Caterpillar has delivered an average positive earnings surprise of 40.25% in the preceding four quarters.
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Terex (TEX) Completes Sale of 7 Million Shares of Konecranes
Terex Corporation (TEX - Free Report) has completed the sale of 8.9% of the total shares outstanding of Konecranes Plc, or 7 million of its Class A shares at a price of EUR 37.40 ($41.86) per share. The price is at a 0.9% discount to Konecranes’ closing price on May 23, 2017. The shares concerned include both Class A and Class B Konecranes shares but does not include Konecranes treasury shares.
Following the completion of the sale, Terex will hold approximately 5.15 million Class B Konecrane shares, or approximately 6.6% of the total shares outstanding of Konecranes.
Terex had received 19.6 million newly issued class B shares representing a 25% interest in Konecranes following the sale of its Material Handling & Port Solutions (MHPS) segment to the latter in Jan 2017. Further, Terex had received approximately $835 million in cash. The sale was in sync with its efforts to simplify structure, systems and footprint in a bid to improve efficiency and enhance global competitiveness.
Terex Corporation Price
Terex Corporation Price | Terex Corporation Quote
On February 15, 2017, Terex sold approximately 7.5 million Konecranes shares for proceeds of approximately $272 million and recorded a loss on sale of $13.2 million in the first quarter. Following the sale of shares, Terex owned approximately 15.5% of the outstanding shares of Konecranes.
In line with this, in Oct 2016, Terex completed the sale of its German compact construction business to Yanmar for $60 million in cash. Included in the sale was the manufacturing facility located in Crailsheim, Germany, and parts distribution center located in Rothenberg, Germany.
Terex’s bottom-line remained flat year over year and came ahead of the Zacks Consensus Estimate in first-quarter 2017. Though the top line registered year-over-year decline in the quarter, it beat the Zacks Consensus Estimate. Terex raised 2017 earnings per share outlook in the range of 80 cents to 95 cents. The company’s focus on simplifying organizational structure, portfolio restructuring and cost-saving initiatives will boost results in the near term. Further, it will benefit from investment in businesses and product development. However, continued challenging crane market, lower demand for replacement of machines, weak mining market, as well as volatile oil and gas prices.
In the past one year, Terex has underperformed Zacks categorized Machinery-Construction/Mining sub industry. Terex’s shares have surged 35.7%, falling behind the industry’s gain of 45%.
Terex currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are AGCO Corporation (AGCO - Free Report) , UFP Technologies, Inc. (UFPT - Free Report) and Caterpillar Inc. (CAT - Free Report) . All three stocks boast a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AGCO Corporation has a remarkable positive average earnings surprise of 40.39% in the last four quarters. UFP Technologies generated a positive average earnings surprise of 7.91% in the trailing four quarters. Caterpillar has delivered an average positive earnings surprise of 40.25% in the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>