What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-07-31 compared with 2024-04-26 · 134 added, 80 removed, 183 unchanged (54% of the section changed)

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Non-GAAP Measures

In this document, we refer to various GAAP (United States (“U.S.”) generally accepted accounting principles) and non-GAAP financial measures.

These non-GAAP measures may not be comparable to similarly titled measures disclosed by other companies.

We present non-GAAP financial measures in reporting our financial results to provide investors with additional analytical tools which we believe are useful in evaluating our operating results and the ongoing performance of our underlying businesses.

In this document, we refer to various GAAP (U.S.

generally accepted accounting principles) and non-GAAP financial measures.

These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies.

Management believes that presenting these non-GAAP financial measures provide investors with additional analytical tools which are useful in evaluating our operating results and the ongoing performance of our underlying businesses because they (i) provide meaningful supplemental information regarding financial performance by excluding impact of one-time items and other items affecting comparability between periods, (ii) permit investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate our core operating performance across periods, and (iii) otherwise provide supplemental information that may be useful to investors in evaluating our financial results.

We do not, nor do we suggest that investors consider, such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

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Non-GAAP measures also include Net Operating Profit After Tax (“NOPAT”) and annualized effective tax rate as adjusted, which are used in the calculation of our after tax return on invested capital (“ROIC”) (collectively the “Non-GAAP Measures”), which are discussed in detail below.

Safety remains our top priority;

driven by Think Safe – Work Safe – Home Safe.

All Terex team members contributed to our effort of continuing to provide products and services for our customers, while maintaining a safe working environment.

Safety is a top priority, not only for our team members, but also our customers.

All Terex team members contribute to our effort of continuing to provide products and services for our customers, while maintaining a safe working environment.

We remain focused on executing our multi-year growth plan and continue to invest in new technologies and products across our businesses.

Our strategic operational priorities of execution, innovation and growth continue to strengthen our operations and allow us to capitalize on the strong demand in our end-markets.

Our operations teams executed well during the first quarter of 2024, maintaining their focus on improving deliveries to our customers and continuing with cost reduction and productivity improvement initiatives.

Our operations teams executed well during the second quarter of 2024, maintaining their focus on improving deliveries to our customers and continuing with cost reduction and productivity improvement initiatives.

We continued our investment in technology and new product development, which are important to help enable us to take advantage of sustainability trends such as recycling, electrification and decarbonization.

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We continued to make good progress ramping up our facility in Monterrey, Mexico.

Our performance in the first quarter of 2024 reflected a strong start to the year with sales growth and margin expansion versus the prior year period.

Net sales of $1.3 billion were up 5% year-over-year, reflecting continued demand for our products across multiple businesses.

Gross margins increased by 40 basis points year-over-year as manufacturing throughput and disciplined price-cost management.

Income from operations of $158 million was up 7% year-over-year.

Operating margin of 12.2% was up 20 basis points compared to the prior year period.

Customer demand remains healthy across most of our businesses, supported by favorable end market conditions.

As we enter the second half of the year, we expect to start seeing increased efficiencies from Monterrey, which we believe will enhance long-term margin trajectory of AWP.

Our performance in the second quarter of 2024 reflected healthy customer demand for our products and excellent execution by our team members in a dynamic and challenging environment.

Net sales of $1.4 billion were down 2% year-over-year, reflecting a continued weakness in European markets, partially offset by continued strong demand for aerial work platforms and telehandlers in North America.

Gross margins decreased by 60 basis points year-over-year due to unfavorable mix.

Income from operations of $193 million was down 8% year-over-year.

Operating margin of 14.0% was down 100 basis points compared to the prior year.

Our backlog of $2.4 billion remains significantly above historical levels.

Our consolidated bookings in the first quarter of more than $1 billion were down compared to the prior year period, which reflects a return to more normal seasonal order patterns and softer demand in Europe.

MP had a good start in 2024 and is executing well despite more challenging macro conditions for a few of its businesses.

For the first quarter, MP sales declined by 6% to $520 million compared to the first quarter of 2023, due primarily to lower end-market demand for material handling equipment and cranes in Europe, partially offset by growth for aggregates in North America.

Our mobile crushing and screening businesses are benefiting from the strength of aggregates and recycled materials.

MP delivered an operating margin of 13.9% for the quarter, down 150 basis points as compared to the prior year period, which was driven by lower sales volume and net unfavorable product mix.

Although we are seeing some softness in European order activity, MP’s backlog of $712 million remains above historical norms, supporting our 2024 outlook.

AWP’s first quarter 2024 net sales were up 13% compared to the prior year period, primarily driven by higher demand, as well as improved supply chain and manufacturing performance.

Over time, we expect our backlog to normalize to pre-pandemic levels as our lead times have normalized due to global supply chain improvements.

While consolidated bookings were down in the second quarter year-over-year, we expect improved bookings in the fourth quarter of 2024 and first quarter of 2025 as we return to more normal season ordering patterns and our annual national contracts are finalized.

MP executed well in the quarter despite lower end-market demand across certain materials processing businesses.

For the second quarter, MP sales declined by 14% to $499 million compared to the second quarter of 2023, primarily driven by our material handling business.

MP delivered an operating margin of 15.4% for the quarter, down 160 basis points as compared to the prior year, which was driven by unfavorable product mix, partially offset by cost discipline.

Although we are seeing some softness in order activity, MP’s backlog of $558 million remains slightly elevated from historical norms and is returning to pre-pandemic levels.

AWP’s second quarter 2024 net sales were up 7% compared to the prior year, primarily driven by higher demand in North America, as well as improved supply chain and manufacturing throughput.

Construction, infrastructure, and industrial applications are driving demand for Genie products.

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Our Utilities business is benefiting from electric grid expansion across the U.S.

AWP delivered operating margins of 13.9% for the quarter, an improvement of 180 basis points compared to the prior year period, driven by higher sales volumes, improved manufacturing throughput and disciplined price-cost management.

AWP continues to have a strong backlog of $2.4 billion, supporting our 2024 outlook.

In 2024, we will continue to move multiple production lines throughout our global footprint.

While these moves are expected to have long-term benefits, we anticipate they will result in short-term manufacturing inefficiencies.

In the first quarter of 2024, our largest market remained North America, which represented approximately 61% of our global sales.

As compared to the prior year period, sales were up in North America and down in all other major geographies.

We continued to execute our capital allocation strategy in the first quarter of 2024 as we made strategic investments in our businesses and we returned capital to shareholders.

We continued to invest in our businesses with $35 million deployed for capital expenditures in the first quarter of 2024 to support business growth.

We typically use cash in the first quarter of the year and had a negative free cash flow of $69 million in the first quarter of 2024.

We continue to maintain ample liquidity and as of March 31, 2024, we had $866 million in available liquidity, with no near-term debt maturities.

AWP delivered operating margins of 15.2% for the quarter, down 100 basis points compared to the prior year, driven by Monterrey start-up inefficiencies and a one-time facility sale gain in the prior year.

AWP continues to have a strong backlog of $1.8 billion.

In the second quarter of 2024, our largest market remained North America, which represented approximately 65% of our global sales.

As compared to the prior year, sales were up in North America and down in all other major geographies.

We continued to execute our capital allocation strategy in the second quarter of 2024 as we made strategic investments in our businesses and we returned capital to shareholders.

We continued to invest in our businesses with $24 million deployed for capital expenditures in the second quarter of 2024 to support business growth.

We generated $42 million of free cash flow in the second quarter of 2024.

We continue to maintain ample liquidity and as of June 30, 2024, we had $879 million in available liquidity, with no near-term debt maturities.

See “Liquidity and Capital Resources” for a detailed description of liquidity and working capital levels, including the primary factors affecting such levels, as well as a reconciliation of net cash provided by (used in) operating activities to free cash flow.

Customer demand remains strong for many of our products and services, although we are planning for continued softness in Europe for the balance of the year.

As a result of the strong execution of our team members in the second quarter and our healthy backlog, we anticipate achieving an adjusted EPS for 2024 of $7.15 to $7.45 on sales of $5.1 to $5.3 billion.

Our sales outlook incorporates the latest dialogue

with our customers and our suppliers and our current supply chain expectations.

It is important to realize we are operating in a challenging macroeconomic environment with many variables and geopolitical uncertainties, so results could change, negatively or positively.

As a result of the strong execution of our team members in the first quarter and our healthy backlog, we now expect EPS for 2024 of $6.95 to $7.35 on net sales of $5.2 to $5.4 billion.

Our sales outlook incorporates the latest dialogue with our customers and our suppliers and our current supply chain expectations.

ROIC and other Non-GAAP Measures (as calculated below) assist in showing how effectively we utilize capital invested in our operations.

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We also believe adding Debt less Cash and cash equivalents to Stockholders’ equity provides a better comparison across similar businesses regarding total capitalization, and ROIC highlights the level of value creation as a percentage of capital invested.

As the tables below show, our ROIC at March 31, 2024 was 27.6%.

As the tables below show, our ROIC at June 30, 2024 was 25.9%.

Amounts described below are reported in millions of U.S.

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Amounts are as of and for the three months ended for the periods referenced in the tables below.

Mar '24 Dec '23 Sep '23 Jun '23 Mar '23

Jun '24 Mar '24 Dec '23 Sep '23 Jun '23

Annualized effective tax rate as adjusted (1)

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(1) The annualized effective tax rate for each 2023 period represents the adjusted full-year 2023 effective tax rate.

March 31, 2024 ROIC 27.6 %

June 30, 2024 ROIC 25.9 %

NOPAT as adjusted (last 4 quarters) $ 512.4

Average Debt less Cash and cash equivalents plus Stockholders’ equity (5 quarters) $ 1,982.0

Three Months Ended

March 31, 2024

Six Months Ended

June 30, 2024

Income (loss) from continuing operations before income taxes (Provision for) benefit from income taxes Income tax rate

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RESULTS OF OPERATIONS

Three Months Ended March 31, 2024 Compared with Three Months Ended March 31, 2023

Three Months Ended March 31,

Three Months Ended June 30, 2024 Compared with Three Months Ended June 30, 2023

Three Months Ended June 30,

Sales % Change In

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Income from operations 193.1 14.0 % 209.9 15.0 % (8.0) %

Net sales for the three months ended March 31, 2024 increased $56.8 million when compared to the same period in 2023 primarily due to healthy demand for aerial work platforms, utility products and aggregates in North America.

Gross profit for the three months ended March 31, 2024 increased $18.6 million when compared to the same period in 2023 primarily due to incremental profit achieved on higher sales volume, improved manufacturing throughput and disciplined price-cost management.

SG&A expenses for the three months ended March 31, 2024 increased $8.0 million when compared to the same period in 2023 primarily due to higher compensation costs and technology expenses.

Income from operations for the three months ended March 31, 2024 increased $10.6 million when compared to the same period in 2023 primarily due to incremental profit achieved on higher sales volume, improved manufacturing throughput and disciplined price-cost management.

Net sales for the three months ended June 30, 2024 decreased $21.4 million when compared to the same period in 2023, primarily due to lower end-market demand in Europe, primarily impacting our materials processing business, partially offset by continued strong demand for aerial work platforms and telehandlers in North America.

Gross profit for the three months ended June 30, 2024 decreased $14.5 million when compared to the same period in 2023, primarily due to the impact of lower sales volume as well as unfavorable mix, partially offset by cost discipline.

SG&A expenses for the three months ended June 30, 2024 increased $2.3 million when compared to the same period in 2023, primarily due to a prior year facility sale gain.

Income from operations for the three months ended June 30, 2024 decreased $16.8 million when compared to the same period in 2023, primarily due to the impact of lower sales volume, unfavorable mix and a prior year facility sale gain.

Materials Processing

Three Months Ended March 31,

Three Months Ended June 30,

Sales % Change In

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Income from operations 77.0 15.4 % 98.2 17.0 % (21.6) %

Net sales for the three months ended March 31, 2024 decreased $33.8 million when compared to the same period in 2023 primarily due to lower end-market demand for material handling equipment and cranes in Europe, partially offset by growth for aggregates in North America.

Income from operations for the three months ended March 31, 2024 decreased $13.2 million when compared to the same period in 2023 primarily due to the impact of lower sales volume and net unfavorable product mix.

Net sales for the three months ended June 30, 2024 decreased $78.8 million when compared to the same period in 2023, primarily due to lower end-market demand across certain product lines and geographies as well as inventory rebalancing at our dealers.

Income from operations for the three months ended June 30, 2024 decreased $21.2 million when compared to the same period in 2023, primarily due to lower sales volume and unfavorable product mix, partially offset by cost discipline.

Aerial Work Platforms

Three Months Ended March 31,

Three Months Ended June 30,

Sales % Change In

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Income from operations 133.8 15.2 % 133.6 16.2 % 0.1 %

Net sales for the three months ended March 31, 2024 increased $86.8 million when compared to the same period in 2023 primarily due to high demand for aerial work platforms, utility products and telehandlers in North America, as well as improved supply chain and manufacturing performance.

Income from operations for the three months ended March 31, 2024 increased $24.2 million when compared to the same period in 2023 primarily due to incremental profit achieved on higher sales volume, improved manufacturing throughput and disciplined price-cost management.

Net sales for the three months ended June 30, 2024 increased $56.9 million when compared to the same period in 2023, primarily due to healthy demand for aerial work platforms and telehandlers in North America.

Income from operations for the three months ended June 30, 2024 of $133.8 million was comparable to the same period in 2023 as incremental profit achieved on higher sales volume was offset by Monterrey start-up inefficiencies and a prior year facility sale gain.

Corporate and Other / Eliminations

Three Months Ended March 31,

Three Months Ended June 30,

Sales % Change In

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* Not a meaningful percentage

Loss from operations for the three months ended March 31, 2024 increased $0.4 million when compared to the same period in 2023.

Loss from operations for the three months ended June 30, 2024 decreased $4.2 million when compared to the same period in 2023.

The decrease in operating loss is primarily due to the negative impact of changes in foreign exchange rates in the prior year.

Interest Expense, Net of Interest Income

Interest expense, net of interest income, for the three months ended March 31, 2024 and 2023 was $11.4 million and $12.9 million.

The decrease in expense is primarily due to lower average borrowings and higher interest income, partially offset by receivable sales at higher interest rates in the current year period.

Interest expense, net of interest income, for the three months ended June 30, 2024 and 2023 was $13.6 million and $14.3 million.

The decrease in expense is primarily due to lower average borrowings and higher interest income, partially offset by receivable sales at higher interest rates.

Other Income (Expense) – Net

Other income (expense) – net for the three months ended March 31, 2024 and 2023 was an expense of $10.4 million and $1.6 million, respectively.

The increase in expense is primarily due to mark-to-market losses recorded on equity investments in the current year period.

During the three months ended March 31, 2024, we recognized income tax expense of $28.0 million on income of $136.5 million, an effective tax rate of 20.5%, as compared to income tax expense of $23.3 million on income of $133.2 million, an effective tax rate of 17.5%, for the three months ended March 31, 2023.

The higher effective tax rate for the three months ended March 31, 2024 when compared with the three months ended March 31, 2023 is primarily due to higher tax related to geographic distribution of income and lower favorable discrete items.

Other income (expense) – net for the three months ended June 30, 2024 and 2023 was an expense of $5.4 million and $3.8 million, respectively.

The increase in expense is primarily due to higher mark-to-market losses recorded on equity investments.

During the three months ended June 30, 2024, we recognized income tax expense of $33.4 million on income of $174.1 million, an effective tax rate of 19.2%, as compared to income tax expense of $32.0 million on income of $191.8 million, an effective tax rate of 16.7%, for the three months ended June 30, 2023.

The higher effective tax rate for the three months ended June 30, 2024 when compared with the three months ended June 30, 2023 is primarily due to higher tax related to geographic distribution of income and less favorable discrete items.

Gain (Loss) on Disposition of Discontinued Operations - net of taxes

During the three months ended March 31, 2023, the gain (loss) on disposition of discontinued operations - net of tax, primarily relates to post-closing adjustments related to the sales of our former MHPS and mobile cranes businesses.

During the three months ended June 30, 2023, the gain (loss) on disposition of discontinued operations - net of tax, primarily relates to post-closing adjustments related to the sales of our former MHPS and mobile cranes businesses.

Six Months Ended June 30, 2024 Compared with Six Months Ended June 30, 2023

Six Months Ended June 30,

Sales % Change In

Reported Amounts

($ amounts in millions)

Net sales $ 2,674.2 — $ 2,638.8 — 1.3 %

Gross profit $ 625.7 23.4 % $ 621.6 23.6 % 0.7 %

SG&A expenses

$ 274.3 10.3 % $ 264.0 10.0 % 3.9 %

Income from operations $ 351.4 13.1 % $ 357.6 13.6 % (1.7) %

Net sales for the six months ended June 30, 2024 increased $35.4 million when compared to the same period in 2023.

The increase in net sales was primarily due to healthy demand for aerial work platforms, telehandlers and utility products in North America, partially offset by lower end-market demand in Europe, primarily impacting our materials processing business.

Gross profit for the six months ended June 30, 2024 increased $4.1 million when compared to the same period in 2023, primarily due to cost discipline and improved manufacturing throughput, partially offset by unfavorable mix.

SG&A expenses for the six months ended June 30, 2024 increased $10.3 million when compared to the same period in 2023, primarily due to higher severance, technology expenses and a prior year facility sale gain.

Income from operations for the six months ended June 30, 2024 decreased $6.2 million when compared to the same period in 2023.

The decrease was primarily due to higher SG&A expenses, unfavorable mix and a prior year facility sale gain, partially offset by disciplined cost management and improved throughput.

Materials Processing

Six Months Ended June 30,

Sales % Change In

Reported Amounts

($ amounts in millions)

Net sales $ 1,018.6 — $ 1,131.2 — (10.0) %

Income from operations $ 149.1 14.6 % $ 183.5 16.2 % (18.7) %

Net sales for the six months ended June 30, 2024 decreased $112.6 million when compared to the same period in 2023, primarily due to lower end-market demand across certain product lines and geographies as well as inventory rebalancing at our dealers.

Income from operations for the six months ended June 30, 2024 decreased $34.4 million when compared to the same period in 2023, primarily due to the impact of lower sales volume and unfavorable product mix, partially offset by cost discipline.

Aerial Work Platforms

Six Months Ended June 30,

Sales % Change In

Reported Amounts

($ amounts in millions)

Net sales $ 1,654.5 — $ 1,510.8 — 9.5 %

Income from operations $ 241.1 14.6 % $ 216.7 14.3 % 11.3 %

Net sales for the six months ended June 30, 2024 increased $143.7 million when compared to the same period in 2023, primarily due to higher demand for aerial work platforms, telehandlers and utility products in North America.

Income from operations for the six months ended June 30, 2024 increased $24.4 million when compared to the same period in 2023, primarily due to incremental profit achieved on higher sales volume and improved manufacturing throughput, partially offset by Monterrey start-up inefficiencies and a prior year facility sale gain.

Corporate and Other / Eliminations

Six Months Ended June 30,

Sales % Change In

Reported Amounts

($ amounts in millions)

Net sales $ 1.1 — $ (3.2) — 134.4 %

Loss from operations $ (38.8) * $ (42.6) * 8.9 %

* Not a meaningful percentage

Loss from operations for the six months ended June 30, 2024 decreased $3.8 million when compared to the same period in 2023.

The decrease in operating loss is primarily due to the negative impact of changes in foreign exchange rates in the prior year.

Interest Expense, Net of Interest Income

During the six months ended June 30, 2024, our interest expense, net of interest income, was $25.0 million, or $2.2 million lower when compared to the same period in 2023, due primarily to lower average borrowings and higher interest income, partially offset by receivable sales at higher interest rates.

Other Income (Expense) – Net

Other income (expense) – net for the six months ended June 30, 2024 and 2023 was an expense of $15.8 million and $5.4 million, respectively.

The increase in expense is primarily due to higher mark-to-market losses recorded on equity investments.

During the six months ended June 30, 2024, we recognized income tax expense of $61.4 million on income of $310.6 million, an effective tax rate of 19.8%, as compared to income tax expense of $55.3 million on income of $325.0 million, an effective tax rate of 17.0%, for the six months ended June 30, 2023.

The higher effective tax rate for the six months ended June 30, 2024 when compared with the six months ended June 30, 2023 is primarily due to higher tax related to geographic distribution of income and less favorable discrete items.

Gain (Loss) on Disposition of Discontinued Operations - net of taxes

During the six months ended June 30, 2023, the gain (loss) on disposition of discontinued operations - net of tax, primarily relates to post-closing adjustments related to the sales of our former MHPS and mobile cranes businesses.

LIQUIDITY AND CAPITAL RESOURCES

We are focused on generating cash and maintaining liquidity (cash and availability under our revolving line of credit) for the efficient operation of our business.

At March 31, 2024, we had cash and cash equivalents of $365 million and undrawn availability under our revolving line of credit of $501 million, giving us total liquidity of approximately $866 million.

During the three months ended March 31, 2024, our liquidity decreased by approximately $105 million from December 31, 2023 primarily due to cash used in operations, capital expenditures and dividends.

At June 30, 2024, we had cash and cash equivalents of $319 million and undrawn availability under our revolving line of credit of $560 million, giving us total liquidity of approximately $879 million.

During the six months ended June 30, 2024, our liquidity decreased by approximately $91 million from December 31, 2023 primarily due to cash used in capital expenditures, dividends and share repurchases, partially offset by cash generated from operations.

Our main sources of funding are cash generated from operations, including cash generated from the sale of receivables, loans from our bank credit facilities and funds raised in capital markets.

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See Part I, Item 1A.

– “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 for a detailed description of the risks resulting from our debt and our ability to generate sufficient cash flow to operate our business.

– “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 and Part II Item 1A – “Risk Factors” of this Quarterly Report for a detailed description of the risks resulting from our debt and our ability to generate sufficient cash flow to operate our business.

Our ability to generate cash from operations is subject to numerous factors, including the following:

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• Sales of our products are subject to general economic conditions, weather, competition, translation effect of foreign currency exchange rate changes, and other factors that in many cases are outside our direct control.

For example, during periods of economic uncertainty, our customers have delayed purchasing decisions, which reduces cash generated from operations.

For example, during periods of economic uncertainty, our customers have delayed purchasing decisions, which in turn reduces cash generated from operations.

• Availability and utilization of other sources of liquidity such as trade account receivables sales programs.

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We will continue to seek opportunities to tax-efficiently mobilize and redeploy funds.

We had free cash flow use of $68.9 million for the three months ended March 31, 2024.

We had free cash flow of $42.4 million for the three months ended June 30, 2024 and free cash use of $26.5 million for the six months ended June 30, 2024.

The following table reconciles net cash provided by (used in) operating activities to free cash flow (in millions):

Three Months Ended

6/30/2024 Six Months Ended

Net cash provided by (used in) operating activities $ 66.5 $ 32.6

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Free cash flow (use) $ 42.4 $ (26.5)

Pursuant to terms of our trade accounts receivable factoring arrangements, during the three months ended March 31, 2024, we sold, without material recourse, approximately $177 million of trade accounts receivable to enhance liquidity.

Working capital as a percent of trailing three month annualized net sales was 22.7% at March 31, 2024.

The following tables show the calculation of our working capital and trailing three months annualized sales as of March 31, 2024 (in millions):

Pursuant to terms of our trade accounts receivable factoring arrangements, during the six months ended June 30, 2024, we sold, without material recourse, approximately $375 million of trade accounts receivable to enhance liquidity.

Working capital as a percent of trailing three month annualized net sales was 22.2% at June 30, 2024.

The following tables show the calculation of our working capital and trailing three months annualized sales as of June 30, 2024 (in millions):

Three Months Ended

March 31, 2024

June 30, 2024

Trailing three month annualized net sales

March 31, 2024

June 30, 2024

Inventories $ 1,232.8

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Working capital

Revolving line of credit (the “Revolver”) borrowings at March 31, 2024 were $99.1 million.

At March 31, 2024, the weighted average interest rate was 6.67% on the Revolver.

Revolving line of credit (the “Revolver”) borrowings at June 30, 2024 were $40.0 million.

At June 30, 2024, the weighted average interest rate was 7.09% on the Revolver.

For information regarding debt, see Note I – “Long-Term Obligations” in Notes to Condensed Consolidated Financial Statements.

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We also anticipate our continued use of Terex Financial Services to drive incremental sales by facilitating customer financing.

During the three months ended March 31, 2024, we repurchased 46,337 shares for $2.7 million leaving approximately $129 million available for repurchase under our share repurchase programs.

Our Board declared a dividend of $0.17 per share in the first quarter of 2024, which was paid to the Company’s shareholders.

During the six months ended June 30, 2024, we repurchased 336,092 shares for $19.1 million leaving approximately $113 million available for repurchase under our share repurchase programs.

Our Board declared a dividend of $0.17 per share in the first and second quarters of 2024, which was paid to our shareholders.

In July 2024, our Board of Directors declared a dividend of $0.17 per share, which will be paid on September 19, 2024 to our shareholders of record as of August 9, 2024.

Our ability to access capital markets to raise funds, through sale of equity or debt securities, is subject to various factors, some specific to us and others related to general economic and/or financial market conditions.

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In addition, terms of our bank credit facilities and senior notes contain restrictions on our ability to make further borrowings and to sell substantial portions of our assets.

Cash used in operations was $33.9 million for the three months ended March 31, 2024, compared to cash provided by operations of $9.1 million for the three months ended March 31, 2023.

The increase in cash used in operations was primarily driven by higher working capital in the current year.

Cash used in investing activities was $35.8 million and $29.7 million for the three months ended March 31, 2024 and 2023, respectively.

The increase in cash used in investing activities relates primarily to higher capital expenditures in the current year, partially offset by lower acquisition and investment activity in the current year.

Cash provided by financing activities was $71.2 million for the three months ended March 31, 2024, compared to cash used in financing activities of $31.7 million for the three months ended March 31, 2023.

The increase in cash provided by financing activities was primarily due to lower debt repayments and higher debt borrowing in the current year.

Cash provided by operations was $32.6 million and $129.8 million for the six months ended June 30, 2024 and 2023, respectively.

The decrease in cash provided by operations was primarily driven by higher working capital.

Cash used in investing activities was $51.3 million and $21.0 million for the six months ended June 30, 2024 and 2023, respectively.

The increase in cash used in investing activities relates primarily to higher capital expenditures and lower proceeds from the sale of capital assets, partially offset by lower acquisition and investment activity.

Cash used in financing activities was $22.4 million and $119.0 million for the six months ended June 30, 2024 and 2023, respectively.

The decrease in cash used in financing activities was primarily due to lower debt repayments and share repurchases, partially offset by lower debt borrowing.

OFF-BALANCE SHEET ARRANGEMENTS

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We are subject to a number of contingencies and uncertainties including, without limitation, product liability claims, workers’ compensation liability, intellectual property litigation, self-insurance obligations, tax examinations, guarantees, class action lawsuits and other matters.

See Note K – “Litigation and Contingencies” in the Notes to Condensed Consolidated Financial Statements for more information regarding contingencies and uncertainties, including our proceedings involving a claim in Brazil regarding payment of ICMS tax, penalties and related interest.

See Note K – “Litigation and Contingencies” in the Notes to Condensed Consolidated Financial Statements for more information regarding contingencies and uncertainties.

We are insured for product liability, general liability, workers’ compensation, employer’s liability, property damage, intellectual property and other insurable risks required by law or contract with retained liability to us or deductibles.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis