WESTPORT, Conn.--(BUSINESS WIRE)--Sept. 3, 2003--Terex Corporation
(NYSE: TEX) today announced that it has acquired an additional 51% of
the outstanding common shares of the Czech Republic company Tatra
a.s., an internationally recognized manufacturer of on/off-road
heavy-duty vehicles for commercial and military applications with 2002
revenues of approximately $138 million. The acquisition brings Terex's
total ownership in Tatra to approximately 71%. Terex purchased the
additional shares from SDC International, Inc.
"We view Tatra as an integral part of our ongoing military
strategy," commented Ronald M. DeFeo, Chairman and Chief Executive
Officer of Terex. "We knew when we initially invested in Tatra as a
minority shareholder that the company needed to be restructured. Tatra
needed greater working capital funding in the near term than prior
ownership was able to provide, which has led to our recent decision to
acquire the additional equity. The acquisition announced today makes
Terex the controlling shareholder of Tatra, which was a requirement
for Terex providing Tatra with the additional working capital funding
necessary to take the restructuring actions required. While the
current Tatra Board of Directors and Supervisory Board will not
change, Fil Filipov will become the Chairman of the Supervisory Board.
Mr. Filipov will also continue as President of Terex Cranes."
Mr. DeFeo continued, "In addition to the military opportunity, we
also see Tatra as an excellent low cost engineering and fabrication
resource, and as an entree to developing markets that many of our
businesses can capitalize on. The consideration for the incremental
shares consisted primarily of the forgiveness of debt (approximately
$8.5 million) and the issuance of approximately 209,000 shares of
Terex common stock. We anticipate that Tatra will be earnings neutral
in 2003 and will add approximately $0.05 to earnings per share in
2004. As Tatra and Terex are each one-third owners in the American
Truck Company LLC military and specialty truck joint venture, which
recently was selected as the preferred bidder for 315 medium tactical
trucks for the Ministry of Defense of Israel, Terex will now
participate in two-thirds of this venture and will consolidate ATC's
results with that of Terex for financial reporting purposes."
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, infrastructure and
mining activity to interest rates and government spending; the ability
to successfully integrate acquired businesses; the retention of key
management personnel; 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 2002 revenues of $2.8 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, Demag, Fermec, Finlay, Franna, Fuchs, Genie, Grayhound,
Hi-Ranger, Italmacchine, Jaques, Johnson-Ross, Koehring, Lectra Haul,
Load King, Lorain, Marklift, Matbro, Morrison, Muller, O&K, Payhauler,
Peiner, Powerscreen, PPM, Re-Tech, RO, Royer, Schaeff, Simplicity,
Square Shooter, Telelect, Terex, and Unit Rig. Terex offers a complete
line of financial products and services to assist in the acquisition
of Terex equipment through Terex Financial Services. More information
on Terex can be found at www.terex.com.
CONTACT: Kevin O'Reilly, 203-222-5943
SOURCE: Terex Corporation