View all Press Releases

Terex Mining to Relocate Tulsa Operations

May 29, 2002
WESTPORT, Conn., May 29, 2002 (BUSINESS WIRE) -- Terex Corporation (NYSE:TEX) announced today plans to relocate the manufacturing and assembly of its Terex Mining haul trucks and parts distribution operations currently performed at Terex Mining's facility in Tulsa, Oklahoma.

These moves are expected to reduce fixed overhead and production costs by approximately $2.7 million annually. In connection with this action, Terex expects to take an accounting charge of approximately $6.4 million, of which approximately $1.3 million is estimated to be the net cash impact. Manufacturing, assembly and parts distribution activities will be relocated to other Terex facilities or third party suppliers. Terex Mining anticipates no customer service or delivery disruptions as a result of the relocation. Terex Mining's leadership, engineering and support staff will remain headquartered in Tulsa.

"The current market environment for surface mining trucks requires a change in structure for Terex to remain profitable in this business," commented Thys de Beer, President Terex Mining. "We simply have too much manufacturing capacity at our Tulsa facility given a realistic view of the market. We are disappointed for the employees of our Unit Rig facility because they have been great partners over the years in managing through the cyclicality of this business. However, we feel compelled to make this change now given current and expected market conditions." Mr. de Beer added, "Terex Mining customers should see no changes in their parts deliveries or product offerings. We have reliable supply partners and we will continue to deliver on our overall mission of offering the best value in mining equipment worldwide, both for Unit Rig haul trucks and O&K hydraulic mining shovels."

    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: Terex's business is highly cyclical and weak general economic conditions may affect the sales of its products and its financial results; the sensitivity of construction and mining activity to interest rates, government spending and general economic conditions; the ability to successfully integrate acquired businesses; the retention of key management personnel; foreign currency fluctuations; Terex's businesses are very competitive and may be affected by pricing, product initiatives and other actions taken by competitors; the effects of changes in laws and regulations; Terex's business is international in nature and is subject to changes in exchange rates between currencies, as well as international politics; the ability of suppliers to timely supply Terex parts and components at competitive prices; the financial condition of suppliers and customers, and their continued access to capital; Terex's ability to timely manufacture and deliver products to customers; Terex's substantial amount of debt and its need to comply with restrictive covenants contained in Terex's debt agreements; compliance with applicable environmental laws and regulations; and other factors, risks, uncertainties more specifically set forth in Terex's public filings with the SEC. Actual events or the actual future results of Terex may differ materially from any forward looking statement due to those and other risks, uncertainties and significant factors. 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.

Terex Corporation is a diversified global manufacturer based in Westport, Connecticut, with 2001 annual revenues in excess of $1.8 billion. Terex is involved in a broad range of construction, infrastructure, recycling and mining-related capital equipment under the brand names of Advance, American, Amida, Atlas, Bartell, Bendini, Benford, Bid-Well, B.L. Pegson, Canica, Cedarapids, Cifali, CMI, Coleman Engineering, Comedil, CPV, Fermec, Finlay, Franna, Fuchs, Grayhound, Hi-Ranger, Italmacchine, Jaques, Johnson-Ross, Koehring, Lectra Haul, Load King, Lorain, Marklift, Matbro, Morrison, Muller, O&K, Payhauler, Peiner, P&H, Powerscreen, PPM, Re-Tech, RO, Royer, Schaeff, Simplicity, Square Shooter, Telelect, Terex, and Unit Rig. More information on Terex can be found at

CONTACT:          Terex Corporation, Westport
                  Kevin O'Reilly, 203/222-5943

Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2002 Business Wire.  All rights reserved.
Categories: Press Releases
View all Press Releases