Terex Corporation's Q1 2020 results were significantly impacted by the COVID-19 pandemic, with revenue down 27% year-over-year. The company responded by implementing cost reduction programs, temporarily suspending manufacturing operations, and focusing on maintaining financial flexibility. Despite the challenges, free cash flow improved year-over-year.
Revenue decreased by 27% year-over-year to $834 million due to customer cancellations and delivery delays in March.
An operating loss of $7 million was recorded, compared to an adjusted operating income of $106 million in Q1 2019, due to lower revenues and COVID-19 related charges.
Free cash flow use improved by approximately $145 million year-over-year, driven by lower net working capital and the sale of the mobile cranes business.
The company implemented a comprehensive cost reduction program, expecting savings in excess of $100 million, and focused on maintaining ample liquidity, with $945 million available as of March 31.
Terex is not providing financial guidance due to the uncertainty surrounding the COVID-19 pandemic.
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