- Earnings per share in the fourth quarter, before non-recurring
items, was $0.14, in line with previous guidance
- Cash flow from operations for the quarter was $18.5 million
- Net debt to book capital fell to 57%
WESTPORT, Conn., Feb 21, 2002 (BUSINESS WIRE) -- Terex Corporation (NYSE:TEX) today reported full year 2001 net income of $12.8
million, or $0.44 per share, compared to 2000 net income of $95.1 million, or
$3.41 per share.
Excluding the impact of restructuring charges and special items, earnings per
share for the full year 2001 and 2000 were $1.39 and $2.82, respectively.
Impacting the full year EPS was the approximately 9.4 million shares issued in
the fourth quarter increasing the weighted average fully diluted number of
shares from 27.7 million for the nine months ended September 30, 2001 to 28.9
million for the year ended December 31, 2001. Net sales for the full year 2001
were $1,812.5 million, a 12% decrease from 2000 net sales of $2,068.7 million.
Excluding the impact of acquisitions and divestitures, sales decreased
approximately 17% year over year.
Fourth quarter net income was $1.6 million, or $0.05 per share. Excluding the
impact of restructuring charges and special items, fourth quarter net income was
$4.5 million, or $0.14 per share, which is within the expected range. Net sales
for the fourth quarter were $442.1 million, compared to $446.6 million in last
year's fourth quarter.
"We continue to operate in a challenging environment although we are cautiously
optimistic about 2002. Our business model has allowed us to remain agile and
adjust to today's uncertainty taking advantage of opportunities as they arise,"
said Ronald M. DeFeo, Terex Chairman and Chief Executive Officer. "Although we
have seen 15% to 25% volume declines in some of our businesses, the Terex
franchise is stronger today than a year ago. Our product and geographic
diversity is helping us through this economic downturn."
Mr. DeFeo continued, "During 2001 we focused on executing our business model. We
reorganized our businesses from a product line to a geographic focus to better
service the customer, and we are getting better sales execution as a result.
Consistent with this reorganization, we also restructured operations to reduce
costs and improve manufacturing efficiencies with facility consolidations and
the continued divestiture of the European aerials business. These efforts
continue. We remained opportunistic on the acquisition front adding
approximately $600 million in proforma revenues to the Company for 2002 with the
acquisitions of CMI, Atlas and Schaeff. We also remained sensitive to the
balance sheet reducing our net debt to book capital to 57%, the best this ratio
has been since Terex was founded. We continue to believe that if we remain lean,
profitable and customer focused during these uncertain times we will not only
improve our competitiveness today, but be positioned to take advantage of the
eventual economic recovery."
A financial summary is shown below:
Terex Corporation
Fourth Quarter Year-to-Date
---------------------------- ----------------------------
(dollars in millions, except per share amounts)
2001 2000 2001 2000
------------ ----------- ---------------- -------------
% of % of % of % of
sales sales sales sales
----- ----- ----- -----
Net sales $442.1 $446.6 $1,812.5 $2,068.7
====== ====== ======== =======
Gross
profit $73.5 16.6% $80.3 18.0% $ 305.8 16.9% $373.5 18.1%
SG&A 49.0 11.1% 37.6 8.4% 168.5 9.3% 161.9 7.8%
------ ----- -------- ------
Operating
profit(1)
(2)(3)(4) 24.5 5.5% 42.7 9.6% 137.3 7.6% 211.6 10.2%
Restructuring
charges and
special
items (2.8) 0.6% (23.2) 5.2% (37.0) 2.0% (26.2) 1.3%
Gain on sale
of business --- --- --- --- --- --- 57.2 2.8%
Interest
and other (18.6) 4.2% (20.5) 4.6% (79.6) 4.4% (95.9) 4.6%
Income taxes (1.5) 0.3% 0.3 0.1% (7.9) 0.4% (51.6) 2.5%
------ ------ ------ ------
Net income
(loss) $ 1.6 0.4% $(0.7) 0.2% $12.8 0.7% $ 95.1 4.6%
===== ====== ===== ======
Earnings
(loss) per
share $ 0.05 $(0.03) $ 0.44 $ 3.41
Adjusted
EPS (5) $ 0.14 $ 0.55 $ 1.39 $ 2.82
Backlog $ 235.2 $219.8 $235.2 $219.8
EBITDA (5) $ 35.3 8.0% $ 52.0 11.6% $175.1 9.7% $249.8 12.1%
Average Fully
Diluted
Shares
Outstanding 32.5 27.3 28.9 27.9
(1) The fourth quarter of 2001 excludes $1.2 million related to
restructuring charges impacting gross profit, but includes $0.8
million in operating losses related to businesses held for sale.
(2) The fourth quarter of 2000 excludes $10.3 million related to the
closing of the Terex distribution facility in the United Kingdom, an
aggregate customer filing bankruptcy, and due diligence costs
associated with a large potential acquisition, which was not
consummated. The impact on gross profit and SG&A was $6.7 million and
$3.6 million, respectively.
(3) The full year 2001 excludes $33.1 million related primarily to
restructuring charges. The impact on gross profit and SG&A was $29.2
million and $3.9, respectively. The full year 2001 includes $1.3
million in operating losses related to businesses held for sale.
(4) The full year 2000 excludes $13.3 million in special items. $10.3
million as described in (2) above as well as restructuring charges
related to Terex Mining and a one-time gain related to pension
curtailment. The impact on gross profit and SG&A was $9.9 million and
$3.4 million, respectively.
(5) Adjusted for restructuring charges and special items identified in
(1), (2), (3), and (4) above.
Fourth Quarter 2001 and Year-To-Date
Net sales for the fourth quarter were $442.1 million, compared to $446.6 million
during last year's fourth quarter. Excluding the impact of acquisitions, net
sales decreased 16% or approximately $70 million. Operating profit, excluding
restructuring charges and special items, for the quarter was $24.5 million,
compared to $42.7 million in the fourth quarter of last year. The decline in
revenues, excluding the impact of acquisitions, can be attributed to the
continued weakness in most of the end markets we serve. However, we did achieve
quarter over quarter growth in the Powerscreen, boom truck, lattice boom crane,
tower crane, and mining businesses. In particular, revenue and operating profit
were impacted negatively by the European aerials businesses, which are currently
held for sale, and the significant production cutbacks during the quarter at our
Waverly, Iowa and Cedar Rapids, Iowa facilities. The production cutbacks were
aimed to reduce inventory in the distribution channel in the mobile hydraulic
crane and Cedarapids businesses in North America. Operating expenses, before
restructuring and special items, were $49.0 million, or 11.1% of sales, in the
quarter, compared to $37.6 million, or 8.4% of sales, in the fourth quarter of
last year, primarily reflecting the impact of companies acquired and the decline
in revenues. Net interest decreased to $19.5 million for the quarter from $20.7
million for the comparable period last year as the increase in average debt for
the quarter was offset by a reduction in the average interest rate during the
same period. Net income also includes a $1.6 million after-tax extraordinary
expense to write off unamortized debt issuance costs related to debt paid in
December.
Net sales for the year were $1,812.5 million, compared to $2,068.7 million last
year, a decrease of 12%. Excluding the impact of acquisitions and divestitures,
sales decreased approximately 17%, or approximately $348 million. Operating
profit, excluding restructuring charges and special items, was $137.3 million,
or 7.6% of sales, for 2001, a decrease of $74.3 million from the prior year of
$211.6 million, or 10.2% of sales. Operating expenses for the full year 2001,
before restructuring charges and special items, were $168.5 million, or 9.3% of
sales, compared to $161.9 million last year, or 7.8% of sales. Excluding the
impact of acquisitions and divestitures, operating expenses decreased 3% in 2001
as a result of Terex's continued emphasis on cost control. Net interest expense
decreased $15.3 million to $79.0 million for 2001 from $94.3 million in 2000
reflecting the slight decrease in average debt during 2001 as well as a
reduction in the average interest rate for the same period. Net income for the
full year 2001 includes a $3.9 million after-tax extraordinary expense to
write-off unamortized debt issuance costs related to debt paid in March and
December of 2001.
Segment Performance
Terex Americas
Fourth Quarter Year-to-Date
---------------------------- ----------------------------
(dollars in millions)
2001 2000 2001 2000
------------ ----------- ---------------- -------------
% of % of % of % of
sales sales sales sales
----- ----- ----- -----
Net sales $196.2 $249.6 $ 857.8 $1,095.4
Gross
profit 37.8 19.3% 42.4 17.0% 134.9 15.7% 176.2 16.1%
SG&A 22.9 11.7% 15.8 6.3% 71.0 8.3% 65.8 6.0%
Operating
profit(1)(2) 14.9 7.6% 26.6 10.7% 63.9 7.4% 110.4 10.1%
Backlog 118.1 129.3 118.1 129.3
(1) Excludes restructuring charges and special items for the fourth
quarter and full year 2001 of $0.9 million and $11.8 million,
respectively.
(2) Excludes restructuring charges and special items for the fourth
quarter and full year 2000 of $4.8 million and $3.0 million,
respectively.
Net sales in the Terex Americas group for the quarter decreased $53.4 million to
$196.2 million from $249.6 million in the fourth quarter of 2001. Excluding the
impact of acquisitions, sales declined approximately 38% during the fourth
quarter of 2001 compared to the prior year period. Net sales were impacted by
the double digit declines within the mobile hydraulic crane and the Cedarapids
businesses as production volumes were reduced by over 65% at both locations and
softness in our utility aerial device business. On the positive side we
continued to gain market share in our boom truck and paving businesses during
the quarter and our light construction business also reported quarter over
quarter growth.
Operating profit, excluding restructuring charges and special items, for the
quarter was $14.9 million, or 7.6% of sales, as compared to $26.6 million for
the same period last year, or 10.7% of sales. Excluding the impact of
acquisitions, operating profit was $12.8 million or 8.3% of sales. The impact
production cutbacks had on gross profit and operating profit for the quarter is
estimated at $2.6 million. Operating expenses for the quarter increased $7.1
million to $22.9 million, or 11.7% of sales. Excluding acquired businesses,
operating expenses were flat in dollar terms and 10.1% of sales.
"Despite the continued weakness experienced in many of our end markets, the
Americas Group posted very good results in this challenging environment,"
commented Ernie Verebelyi, Group President-Terex Americas. "During this period
we have continued to take actions and execute on plans to improve the
manufacturing efficiencies and cost structure of the group. We made significant
progress on our previously announced restructuring plan, which will also yield
results in 2002. During the quarter we have had significant production cutbacks
at two of our facilities to reduce some of the excess inventory in the
distribution channel that was highlighted during the third quarter. We took
advantage of the slowdown in production at the Waverly facility to focus on the
consolidation of our hydraulic crane products into the Waverly facility and
ensure a smooth transition. The consolidation, which combines our U.S. mobile
hydraulic crane business under one roof, is virtually complete. Although we
believe the environment will remain challenging in the short term, successful
implementation of the plans we have in place will improve the group's
competitiveness and position us to take full advantage of any market recovery."
Terex Europe
Fourth Quarter Year-to-Date
---------------------------- ----------------------------
(dollars in millions)
2001 2000 2001 2000
------------ ----------- ---------------- -------------
% of % of % of % of
sales sales sales sales
----- ----- ----- -----
Net sales $203.3 $178.4 $ 872.3 $895.1
Gross
profit 24.4 12.0% 25.5 14.3% 123.0 14.1% 146.9 16.4%
SG&A 16.9 8.3% 13.5 7.6% 64.8 7.4% 60.9 6.8%
Operating
profit(1)
(2)(3) 7.5 3.7% 12.0 6.7% 58.2 6.7% 86.0 9.6%
Backlog 119.1 65.0 119.1 65.0
(1) Excludes restructuring charges and special items for the fourth
quarter and full year 2001 of $0.3 million and $17.4 million,
respectively.
(2) Excludes restructuring charges and special items for the fourth
quarter and full year 2000 of $2.9 million.
(3) Includes $0.8 million and $1.3 million of operating losses related
to businesses sold or held for sale for the fourth quarter and full
year 2001, respectively.
Net sales for the Terex Europe group reached $203.3 million during the quarter,
a 14% increase from last year's fourth quarter of $178.4 million. Excluding the
impact of acquisitions, net sales were relatively flat quarter over quarter. The
continued strong performance of the Powerscreen group and improvements within
our lifting group in Europe, primarily Spain and Italy, offset declines in the
construction business and the European aerial business. The European aerial
business, which we have been de-emphasizing, is currently held for sale.
Operating profit, excluding restructuring and special items was $7.5 million, or
3.7% of sales, during the fourth quarter of 2001, as compared to $12.0 million,
or 6.7% of sales, for the same period of last year. Excluding the impact of
acquisitions, operating profit was $6.9 million, or 3.9% of sales. Continuing to
impact the margin is the change in geographic mix in this business. The decline
in North America has been offset somewhat by penetrating markets in Europe and
South Africa, which historically have lower margins. Operating expenses were
$16.9 million for the fourth quarter of 2001, or 8.3% of sales, compared to
$13.5 million for last year's fourth quarter, or 7.6% of sales, as a result of
the declining revenue base and the impact of acquisitions.
"Despite a continued slow down in the construction truck business driven
primarily by the North American market, our other businesses posted solid
results during the quarter given the current environment in which we operate,"
said Colin Robertson, President-Terex Europe. "Powerscreen, BL Pegson, Fermec,
and Terex Lifting reported double digit revenue growth in the quarter. We remain
optimistic about revenue opportunities with the Terex loader backhoe (Fermec)
and newly acquired businesses that can be cross-sold with other Terex products.
From a manufacturing perspective we are reviewing alternatives for further
consolidation of facilities within the United Kingdom to continue to improve our
cost structure and competitiveness."
Terex Mining
Fourth Quarter Year-to-Date
---------------------------- ----------------------------
(dollars in millions)
2001 2000 2001 2000
------------ ----------- ---------------- -------------
% of % of % of % of
sales sales sales sales
----- ----- ----- -----
Net sales $82.7 $69.5 $ 266.2 $319.3
Gross
profit 10.8 13.1% 12.0 17.3% 48.3 18.1% 48.1 15.1%
SG&A 6.7 8.1% 8.6 12.4% 29.9 11.2% 36.4 11.4%
Operating
profit(1)(2) 4.1 5.0% 3.4 4.9% 18.4 6.9% 11.7 3.7%
Backlog 17.1 43.0 17.1 43.0
(1) Excludes restructuring charges and special items for the full year
2001 of $3.9 million.
(2) Excludes restructuring charges and special items for the full year
2000 of $4.8 million.
Net sales in the Terex Mining group reached $82.7 million in the quarter,
compared to $69.5 million for the fourth quarter of 2000, or a 19% increase. The
results for the quarter reflect increases in sales of both new machines and
spare parts in the surface mining truck and hydraulic shovel businesses. The
activity in the quarter was driven primarily by the coal and iron ore markets.
Operating profit for the quarter was $4.1 million, or 5.0% of sales, compared to
$3.4 million, or 4.9% of sales, for the same quarter last year. Gross profit
decreased from 17.3% of sales to 13.1% of sales and SG&A decreased from 12.4% of
sales to 8.1% of sales, reflecting the reclassification of certain service
expenses from operating expenses to cost of sales.
"Mining had a solid quarter given the general uncertainty surrounding the
economy and commodity prices and the unwillingness of customers to make long
term capital investments," said Thys de Beer, President-Terex Mining. "We
continue to remain focused on the customer and although the market remains
challenging we see opportunity in many geographic areas of the business where
historically we have had very little market share. We continue to see activity
in the coal, iron ore, and diamond markets, with coal having the majority of the
prospects over the next twelve months."
Acquisition Update
"We completed the acquisitions of CMI Corporation and Atlas Weyhausen during the
fourth quarter of 2001, and the Schaeff acquisition closed in January 2002,"
commented Fil Filipov, Terex Executive Vice President. "We are aggressively
implementing our 100-day plan for CMI, Atlas and Schaeff. CMI anticipated $20
million in annual savings, which we have already achieved. However, we continue
to look for ways to improve our cost structure in order to offer competitive
pricing and offset the softness in the market." Mr. Filipov added, "Our German
acquisitions continue to move with speed to reduce cost and increase our market
share. With slowing general economic conditions in Germany, we feel there are
great cross selling opportunities with other Terex product and distribution
channels."
Capital Structure
"During the year we have successfully executed three capital market transactions
raising $500 million in senior subordinated notes, expanding our revolver to
$300 million and raising $96 million from the issuance of common stock," said
Joseph F. Apuzzo, Chief Financial Officer. "The proceeds were primarily used to
repay debt improving the balance sheet and strengthening our financial position.
The Company also issued approximately 3.6 million shares in connection with the
acquisition of CMI consistent with our commitment to maintain a balance between
growth and leverage. Net debt at the end of 2001 was $805 million, and the net
debt to book capitalization decreased to 57% at December 31, 2001 from 61% at
December 31, 2000. When looking at the net debt to book capitalization, it is
important to note that from December 1999 to December 2001 there have been
significant fluctuations in exchange rates, primarily the British pound and Euro
having a negative impact of approximately $100 million on equity."
Mr. Apuzzo continued, "Reduction in working capital and the generation of free
cash flow continues to remain a focus of management. Cash flow from operations
for the year, including $17 million of taxes paid related to the sale of the
truck mounted forklift business and interest on the IRS settlement, was about
breakeven. In the second half of 2001, we generated approximately $85 million in
cash from operations. Working capital adjusted for acquisitions, as a percent of
sales was reduced from about 41% at the end of June to about 38% at year-end. We
expect to see continued benefits from our focus on working capital management.
We are maintaining high liquidity in the short term through a combination of
cash on the balance sheet and our $300 million revolver, which was virtually
undrawn at December 31, 2001. As the markets we compete in stabilize and we see
the economy begin to recover we will revisit our alternatives. Liquidity at
December 31, 2001, including cash and the undrawn revolver was approximately
$500 million."
Recent Developments
Terex announced on January 15, 2002 it had completed the acquisition of The
Schaeff Group, a leading German manufacturer of compact construction equipment,
including mini and midi excavators, compact wheel loaders, and a full range of
scrap material handlers.
The company has recently completed or entered into agreements to sell its
European aerial businesses in Cork, Ireland and Holland Lift in the Netherlands,
as well as its agricultural trailer business in Brimont, France. These
businesses, which will be sold for net book value, contributed approximately $22
million in net sales during 2001.
Outlook
Outlook for 2002
"Terex will be a stronger and more profitable company in 2002 than 2001 despite
the challenging economic environment and questionable visibility," commented Mr.
DeFeo. "The reason for my cautious but firm optimism is based upon actions we
have taken in 2001 and what we are implementing in 2002. We expect revenue will
grow 25-30% from acquisitions that we believe will be accretive during the year.
Soft markets will be offset by revenue growth on products where we have low
market shares and lots of opportunity. The Terex cost structure, which by most
measures was already efficient, has been further pruned with personnel
reductions in the company (excluding acquisitions) of 20% along with the
facility consolidations previously announced."
Mr. DeFeo continued, "We expect the first half to be weaker than the second half
and the first quarter the weakest one of the year. We believe the company will
earn in the range of $1.50 - $1.75 per share on a fully diluted basis of 39.3
million shares. This includes the impact of FAS 142. We also believe that we can
continue to strengthen the balance sheet throughout the year."
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 and
government spending; impact of downward economic cycles and weaker 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.
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 American, Amida,
Atlas, B.L. Pegson, Bartell, Bendini, Benford, Bid-Well, CMI, Canica-Jaques,
Cedarapids, Cifali, Coleman, Comedil, Fermec, Finlay, Franna, Fuchs, Grayhound,
Jaques, Italmacchine, Koehring, Load King, Lorain, Marklift, Matbro, Morrison,
Muller, O&K, P&H, PPM, Payhauler, Peiner, Powerscreen, RO, Schaeff, Simplicity,
Square Shooter, Telelect, Terex, and Unit Rig. More information on Terex can be
found at www.terex.com.
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(unaudited)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
---------------------- ---------------------
2001 2000 2001 2000
--------- -------- -------- -----------
Net sales $ 442.1 $ 446.6 $ 1,812.5 $ 2,068.7
Cost of goods sold 369.8 373.0 1,535.9 1,705.1
--------- -------- -------- -----------
Gross profit 72.3 73.6 276.6 363.6
Selling, general and
administrative expenses 49.0 41.2 172.4 165.3
--------- -------- -------- -----------
Income from operations 23.3 32.4 104.2 198.3
Other income (expense):
Interest income 1.1 1.4 7.7 5.5
Interest expense (20.6) (22.1) (86.7) (99.8)
Gain on sales
of businesses --- --- --- 57.2
Other income
(expense) - net 0.9 0.2 (0.6) (1.6)
--------- -------- -------- -----------
Income from continuing
operations before
income taxes and
extraordinary items 4.7 11.9 24.6 159.6
Provision for
income taxes (1.5) (3.8) (7.9) (55.7)
--------- -------- -------- -----------
Income from continuing
operations before
extraordinary items 3.2 8.1 16.7 103.9
Loss from
discontinued operations --- (7.3) --- (7.3)
--------- -------- -------- -----------
Income before
extraordinary items 3.2 0.8 16.7 96.6
Extraordinary loss on
retirement of debt (1.6) (1.5) (3.9) (1.5)
--------- -------- -------- -----------
Net income (loss) $ 1.6 $ (0.7) $ 12.8 $ 95.1
========= ========= ======== ===========
EARNINGS PER SHARE: -
Basic:
Income from
continuing
operations $ 0.10 $ 0.30 $ 0.60 $ 3.82
Loss from
discontinued
operations --- (0.27) --- (0.27)
--------- -------- -------- -----------
Income before
extraordinary
items 0.10 0.03 0.60 3.55
Extraordinary loss
on retirement
of debt (0.05) (0.06) (0.14) (0.05)
--------- -------- -------- -----------
Net income (loss) $ 0.05 $ (0.03) $ 0.46 $ 3.50
========= ========= ======== ===========
Diluted:
Income from
continuing
operations $ 0.10 $ 0.30 $ 0.58 $ 3.72
Loss from
discontinued
operations --- (0.27) --- (0.26)
--------- -------- -------- -----------
Income before
extraordinary
items 0.10 0.03 0.58 3.46
Extraordinary loss
on retirement
of debt (0.05) (0.06) (0.14) (0.05)
--------- -------- -------- -----------
Net income (loss) $ 0.05 $ (0.03) $ 0.44 $ 3.41
========= ========= ======== ===========
Weighted average number
of common and common
equivalent shares
outstanding in per
share calculation
Basic 31.9 26.8 28.1 27.2
Diluted 32.5 27.3 28.9 27.9
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In millions, except par value)
(Unaudited)
December 31,
-------------------------
2001 2000
--------- ----------
CURRENT ASSETS
Cash and cash equivalents $ 250.4 $ 181.4
Trade receivables 351.7 360.2
Inventories 707.8 598.1
Deferred taxes 23.7 51.0
Other current assets 52.5 51.7
--------- ---------
Total Current Assets 1,386.1 1,242.4
LONG-TERM ASSETS
Property, plant and equipment 175.0 153.9
Goodwill 620.3 491.4
Deferred taxes 75.4 21.2
Other assets 134.6 74.8
---------- ----------
TOTAL ASSETS $ 2,391.4 $ 1,983.7
========== ==========
CURRENT LIABILITIES
Notes payable and current
portion of long-term debt $ 34.7 $ 20.5
Trade accounts payable 291.0 311.2
Accrued compensation and benefits 37.3 25.9
Accrued warranties
and product liability 66.8 65.2
Other current liabilities 201.7 152.8
---------- ----------
Total Current Liabilities 631.5 575.6
NON CURRENT LIABILITIES
Long-term debt,
less current portion 1,020.7 882.0
Other 143.8 74.6
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Equity rights 0.5 0.7
Common Stock, $0.01 par value -
Authorized 150.0 shares; issued
37.5 and 27.9 shares at
December 31, 2001 and 2000,
respectively 0.4 0.3
Additional paid-in capital 532.4 358.9
Retained earnings 199.9 187.1
Accumulated other
comprehensive income (120.3) (78.5)
Less cost of shares of common
stock in treasury (1.1 shares) (17.5) (17.0)
----------- ---------
Total Stockholders' Equity 595.4 451.5
----------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 2,391.4 $ 1,983.7
========== =========
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
Year Ended
December 31,
-------------------------
2001 2000
--------- ----------
OPERATING ACTIVITIES
Net income $ 12.8 $ 95.1
Adjustments to reconcile net income
to cash provided by (used in)
operating activities:
Depreciation 22.5 23.0
Amortization 17.8 18.5
Extraordinary loss on
retirement of debt 3.9 1.5
Gain on sale of businesses --- (34.2)
Gain on sale of fixed assets (1.5) (0.6)
Restructuring charges 19.5 ---
Loss from discontinued operations --- 7.3
Changes in operating assets
and liabilities (net of
effects of acquisitions):
Trade receivables 28.1 64.2
Net inventories (19.6) 43.6
Trade accounts payable (40.5) 12.8
Other, net (48.5) (30.6)
--------- ----------
Net cash provided by (used in)
operating activities (5.5) 200.6
--------- ----------
INVESTING ACTIVITIES
Acquisition of businesses,
net of cash acquired (89.7) (20.0)
Proceeds from sale of businesses --- 144.3
Capital expenditures (13.5) (24.2)
Proceeds from sale of assets 8.0 10.8
Other (41.1) ---
--------- ----------
Net cash provided by (used in)
investing activities (136.3) 110.9
--------- ----------
FINANCING ACTIVITIES
Proceeds from issuance of
long-term debt, net of
issuance costs 481.4 ---
Issuance of common stock 96.3 ---
Principal repayments of
long-term debt (388.5) (183.1)
Net borrowings (repayments) under
revolving line of
credit agreements 23.6 (53.6)
Purchase of common stock
held in treasury --- (20.2)
Other (1.3) (4.3)
--------- ----------
Net cash provided by (used in)
financing activities 211.5 (261.2)
--------- ----------
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS (0.7) (2.2)
--------- ----------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 69.0 48.1
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 181.4 133.3
--------- --------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 250.4 $ 181.4
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