Summit Materials (SUM) Tops Q3 EPS by 14c, Revenues Beat

Summit Materials (NYSE: SUM) reported Q3 EPS of $0.79, $0.14 better than the analyst estimate of $0.65. Revenue for the quarter came in at $709.62 million versus the consensus estimate of $681.51 million.

John L. Garrison, Jr., Terex Corporation Chairman and CEO, commented, "Our ability to execute and safely serve customers during this uncertain time drove sequentially stronger financial performance. Our results demonstrate the progress we are making to align our cost structure with the current customer demand environment. We are strategically reducing spending and consolidating our company-wide footprint. These actions will enable us to maintain a competitive cost structure and position us for growth."

"Aerial Work Platforms (AWP) improved its operating performance delivering 3.0% operating margin reflecting the gradual sequential improvement in business activity. In addition, both Genie and Terex Utilities are seeing improved utilization levels of their equipment," said Mr. Garrison.

Mr. Garrison continued, "Materials Processing (MP) continued its strong performance by delivering a 12.9% operating margin. MP is a diversified and consistently strong performer, even in these challenging times, with team members intently focused on profitable growth and serving its customers globally."

"Terex's third quarter results demonstrate our ability to offset challenging macroeconomic conditions by focusing on levers within our control," said John D. Sheehan, Terex Corporation Senior Vice President and Chief Financial Officer. "We mitigated these headwinds with disciplined cost and working capital management to generate $54 million of positive free cash flow in the quarter. Our free cash flow performance reflects steady improvement in our businesses and strong execution," continued Mr. Sheehan.

Based on the Company's current expectations of the markets, overall revenue expectation for 2020 remains unchanged from our outlook communicated in July. Also, consistent with historical cash flow patterns, the fourth quarter of 2020 is expected to be the Company's strongest free cash flow quarter of the year, with net working capital continuing to be a source of cash.

"Finally, I am very proud with how our global team is managing through this challenging year. We are on the path to enter 2021 as an even stronger company," Mr. Garrison concluded.

For earnings history and earnings-related data on Summit Materials (SUM) click here.

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