WESTPORT, Conn.--(BUSINESS WIRE)--Dec. 10, 2003--Terex Corporation
(NYSE: TEX) today announced it has terminated discussions with
Caterpillar regarding the sale of Terex's mining truck business to
Caterpillar and that Terex will not acquire Caterpillar's mining
shovel intellectual property. Discussions ended due to an inability to
come to financial terms satisfactory to all parties.
Ronald M. DeFeo, Terex's Chairman and Chief Executive Officer,
commented, "We were unable to conclude this deal because of a
difference in value. We believe the process has validated the quality
of our truck and shovel products. However, the complexity of this
transaction, coupled with a need to sell various distribution entities
to third party Caterpillar dealers, shifted too much of the risk to
Terex shareholders, and I felt this outweighed the strategic logic of
the transaction." Mr. DeFeo continued, "We will continue in the mining
business with what we believe is the superior electric truck and
hydraulic shovel combination in the world. These businesses, including
our own local distribution, have had improving performance and
profitability and we expect them to continue to be a contributor to
earnings. This performance and an improving outlook for worldwide
mining equipment, coupled with the positive cash flow currently being
generated from Terex's operations, causes us to remain firm in our
view on value. We expect to continue to own these businesses and will
report operating results accordingly for 2003 and 2004."
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: Terex Corporation
Tom Gelston, 203/222-5943
SOURCE: Terex Corporation