WESTPORT, Conn., Oct 5, 2001 (BUSINESS WIRE) -- Terex Corporation (NYSE: TEX)
today announced its plans for restructuring the operations of CMI Corporation,
which Terex acquired on October 1, 2001.
The plan calls for integrating the production of four existing CMI facilities
into CMI's Oklahoma City location, as well as other cost reduction initiatives.
The restructuring plan will reduce personnel by approximately 500 and is
expected to generate cost savings in excess of $20 million. The restructuring
plan will be implemented immediately with full integration accomplished within
nine months. The four CMI facilities impacted by the integration are located in
Brownwood, Texas, Champaign, Illinois, Cedar Falls, Iowa and Opglabbeek,
Belgium.
"The integration of these facilities will improve capacity utilization at the
Oklahoma City facilities, which have over 700,000 square feet of covered space.
We will also reduce overhead costs," commented Fil Filipov, Terex Executive Vice
President and President of CMI. "In spite of today's challenging business
environment, we believe there are opportunities to grow the business. We will
accomplish this by executing our restructuring plan, which we anticipate will
deliver both cost savings and improved quality and product support in order to
better meet the needs of the customer."
Terex Corporation is a diversified global manufacturer based in Westport,
Connecticut, with 2000 revenues in excess of $2 billion. Terex is involved in a
broad range of construction, infrastructure, recycling and mining-related
capital equipment under the brand names of Terex, Unit Rig, Payhauler, O&K,
Fermec, Benford, Powerscreen, Finlay, B.L. Pegson, Simplicity, Cedarapids,
Grayhound, CMI, Bid-Well, Load King, Cifali, Jaques, Canica-Jaques, Lorain, PPM,
P&H, Franna, Marklift, Koehring, Bendini, RO, Telelect, Square Shooter,
American, Italmacchine, Peiner, Comedil, Matbro, Amida, Bartell, Coleman, Muller
and Morrison. More information on Terex can be found at www.terex.com.
Safe Harbor Statement
The above contains forward-looking information based on Terex's current
expectations. Because forward-looking statements involve risks and
uncertainties, actual results could differ materially. Such risks and
uncertainties, many of which are beyond Terex's control, include among others,
the sensitivity of construction and mining activity to interest rates,
government spending and downward economic cycles and general economic
conditions; the success of the integration of acquired businesses; the retention
of key management; foreign currency fluctuations; pricing, product initiatives,
and other actions taken by competitors; the effect of changes in laws and
regulations, including environmental laws and regulations; the effect of debt
and restrictive covenants; and other factors, risks, uncertainties more
specifically set forth in Terex's public filings with the SEC. The
forward-looking statements herein speak only as of the date of this release.
Terex expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement included in this release
to reflect any changes in Terex's expectations with regard thereto or any
changes in events, conditions, or circumstances on which any such statement is
based.
CONTACT: Investor Relations
Terex Corporation
Kevin O'Reilly, 203/222-5943
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