Terex Corp (TEX), a lifting and material handling solutions provider, has recorded a 7.16 times surge in profit for the quarter ended Jun. 30, 2014, helped by lower expenses and gain on disposition of discontinued operations.

The company earned $140.40 million or $1.21 a share in the second-quarter compared with $19.60 million or $0.18 a share a year ago. Analysts on average had predicted net income of $0.81 a share.

Revenue during the second-quarter rose 10.40 percent to $2055.10 million from $1861.50 million in the last year period.

Gross margin expanded by 176 basis points over the last year period to 20.62 percent. Total expenses as a percentage of revenues decreased to 92.17 percent from 95.51 percent in the same period last year. That has resulted in improvement of 334 basis points in operating margins to 7.83 percent.

The company posted operating income of $160.90 million, compared with $83.50 million in the previous year period.

"Our results for the second quarter and first six months of the year were mixed both from a business and geographical perspective," commented Ron DeFeo, Terex chairman and CEO. "Our Aerial Work Platforms (AWP) segment had a strong quarter but margins were slightly lower than a year ago due to product mix and planned investments in new product development and manufacturing footprint. We expect this dynamic to continue through the remainder of the year, although on increasing sales versus the prior year."

Cash Flow

Terex Corp has generated cash of $24.50 million from operating activities during the first half, down 81.14 percent or $105.40 million when compared with the last year period.

The company has generated cash of $120.10 million from investing activities during the first half, as against cash outgo of $1.40 million in the last year period. It has made net capital expenditure of $34.70 million during the first half, which was higher by 4857.14 percent or $34 million, from a year ago.

The company has spent $189.10 million cash to meet financing activities during the first half, as against cash outgo of $240.20 million in the last year period. It has made net repayment of $57 million debt during the first half. It has spent net of $54.90 million on repurchase of common stocks.

The company's cash dividend payment decreased 40.22 percent or $7.40 million to $11 million. Dividend payment accounted for 44.90 percent of operating cash flow for the first half, compared with 14.16 percent in the same period previous year.

As on Jun. 30, 2014, the company's cash balance stood at $364.30 million, down 33.55 percent or $183.90 million from Jun. 30, 2013.

Working Capital

Terex Corp has witnessed a decline in the working capital over the last one year. The company's working capital stood at $1817.10 million as at Jun. 30, 2014, down $52.50 million or 2.81 percent from $1869.60 million on Jun. 30, 2013. It registered a decrease in current ratio to 1.91 as at Jun. 30, 2014 from 2.02 on Jun. 30, 2013.

Debt Position

Terex Corp has witnessed an increase in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $1922.50 million, up 2.79 percent or $52.10 million, from Jun. 30, 2013.

The company's total debt was 28.67 percent of total assets as on Jun. 30, 2014, compared with 28.53 percent on Jun. 30, 2013. It has witnessed a decline in debt to equity ratio to 0.81 on Jun. 30, 2014 compared with 0.94 on Jun. 30, 2013.

Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 5.08 from 2.66 in the same period last year.

Shares of the company went down by 51 cents or 1.39 percent to close at $36.07 on Monday.