- Sales increased 59% to $928 million in the quarter
- Cash flow from operations was $115 million
- Net debt decreased $100 million from December 31, 2002
WESTPORT, Conn.--(BUSINESS WIRE)--April 23, 2003--Terex
Corporation (NYSE: TEX) today announced net income for the
first quarter of 2003 of $12.5 million, or $0.26 per share, compared
to a net loss of $107.2 million, or $2.77 per share, for the first
quarter of 2002.
Excluding the impact of special items, net income for the quarter
was $15.6 million, or $0.32 per share, compared to $7.0 million, or
$0.18 per share, for the first quarter of 2002. Special items for the
first quarter of 2003 include charges for previously announced
restructuring actions, inventory valuation adjustments related to the
Demag and Genie acquisitions and the write down of certain assets
within the EarthKing subsidiary, offset partially by a favorable
ruling on a legal claim. Special items for the first quarter of 2002
include restructuring charges and the impact of adopting SFAS No. 141
"Business Combinations" and SFAS No. 142 "Goodwill and Other
Intangible Assets." Net sales increased to $927.7 million in the first
quarter of 2003, an increase of 59% from $582.0 million in the first
quarter of 2002. Cash flow from operations was $114.9 million during
the first quarter of 2003 and net debt decreased by $100.1 million
from December 31, 2002 levels. During the quarter, Terex adjusted its
effective tax rate from 32% to 28% as a result of tax planning
strategies and the mix of its business portfolio. This change resulted
in a $0.02 increase in earnings per share for the first quarter of
2003.
"This quarter's overall performance was very encouraging despite a
challenging market environment," commented Ronald M. DeFeo, Terex's
Chairman and Chief Executive Officer. "We have been able to achieve
progress on many fronts and we are particularly pleased with the Genie
and Demag integrations and the generation of cash flow from operations
at a time in the year when we usually consume cash. We entered 2003
with very focused goals, namely integration of our acquisitions and
execution on our cost saving and cash generation targets. Furthermore,
we remain committed to $200 million in debt reduction by the end of
2003."
"We are strengthening our position as the number three franchise
player in the construction and mining equipment market with a
different and flexible business model. We have grown internally and
via acquisition and continue to achieve meaningful profits and cash
flow during these challenging times. Genie and Demag have adapted to
Terex's ownership and strategies within the context of each entity's
culture," added Mr. DeFeo. "The priority for Terex continues to be to
extract value from all of our operations in order to generate income
and cash and to reduce debt as promised. Despite our progress, we
still have a lot of work left to do."
"We are well on our way to our goal of generating $150 million in
cash from working capital reductions in 2003, as we achieved $90
million of this in the first quarter," commented Mr. DeFeo. (Terex
defines working capital as the sum of accounts receivable plus
inventory less accounts payable.) Mr. DeFeo continued, "This is
particularly impressive given the seasonality of our business and the
fact that the first quarter generally involves a net use of working
capital in anticipation of the selling season. The Demag integration
continues on track, despite some very difficult market conditions, and
has delivered significant cash flow from operations during the first
seven months of ownership, primarily from working capital reductions.
The Genie integration is ahead of our expectations at this time.
Although it is well documented that many of the large North American
rental companies have indicated they will be reducing capital spending
in 2003, our management team has been very focused on executing cost
reduction initiatives and looking for sale opportunities elsewhere,
particularly in Europe, and I believe both of these efforts benefited
us in the first quarter. Our other cost reduction initiatives are on
track and we expect to make progress and deliver the benefits during
the remainder of 2003."
"I am also pleased to point out that Institutional Shareholder
Services (ISS) recently reviewed and rated Terex's corporate
governance profile and, according to ISS, Terex outperformed 99% of
the companies in the Russell 3000 and 98.1% of the companies in the
capital goods group. This is a testament to how seriously we take
corporate governance at Terex and the policies and procedures we have
implemented," noted Mr. DeFeo. "While this is a good measure,
governance is a constant journey on which we will remain focused."
In this press release Terex refers to various non-GAAP (generally
accepted accounting principles) financial measures. The table below
and the tables included elsewhere in this press release provide a
reconciliation of the reported GAAP numbers for the first quarters of
2003 and 2002, the reported numbers excluding special items, and the
reported numbers excluding acquisitions (specifically Demag, Genie,
Pacific Utility, Telelect Southeast, Advance Mixer, Commercial Body
and Combatel) and special items. Terex believes that this information
is useful to understanding its operating results, the ongoing
performance of its underlying businesses without the impact of
non-recurring items, and the impact that acquisitions have had on its
financial performance. Terex also discloses EBITDA, as it is a
commonly referred to financial metric used in the investing community,
and Terex believes that disclosure of EBITDA will be helpful to those
reviewing its performance and that of other comparable companies.
A financial summary is shown below:
Three months ended March 31,
-----------------------------------------
2003
-----------------------------------------
(in millions, except per share amounts)
Excluding
Special Excluding Acquisitions
Items Special & Special
Reported (2) Items Items (4)
-----------------------------------------
Net Sales $ 927.7 $ --- $ 927.7 $ 599.2
======== ======= ======== ============
Gross profit $ 129.7 $ 5.6 $ 135.3 $ 83.8
SG&A 88.4 (0.3) 88.1 59.6
-------- ------- -------- ------------
Income from Operations 41.3 5.9 47.2 $ 24.2
============
Other Income (expense) (23.9) (1.6) (25.5)
Provision for income
taxes (4.9) (1.2) (6.1)
Cumulative effect of
change in accounting
principles --- --- ---
-------- ------- --------
Net income (loss) $ 12.5 $ 3.1 $ 15.6
======== ======= ========
Earnings per share & $ 0.26 $ 0.32
EBITDA (1) $ 55.6 $ 61.5
Backlog $ 458.3 $ 5.9 $ 458.3
Average Fully Diluted
Shares Outstanding 49.0 49.0
Three months ended March 31,
-----------------------------------------
2002
-----------------------------------------
(in millions, except per share amounts)
Excluding
Special Excluding Acquisitions
Items Special & Special
Reported (3) Items Items (4)
-----------------------------------------
Net Sales $ 582.0 $ --- $ 582.0 $ 569.9
======== ======= ======== ============
Gross profit $ 91.3 $ 1.2 $ 92.5 $ 90.1
SG&A 59.8 --- 59.8 58.2
-------- ------- -------- ------------
Income from Operations 31.5 1.2 32.7 $ 31.9
============
Other Income (expense) (22.4) --- (22.4)
Provision for income taxes (2.9) (0.4) (3.3)
Cumulative effect of
change in accounting
principles (113.4) 113.4 ---
-------- ------- --------
Net income (loss) $(107.2) $114.2 $ 7.0
======== ======= ========
Earnings per share (2.77) $ 0.18
EBITDA (1) 38.8 $ 40.0
Backlog 299.9 $ 1.2 $ 299.9
Average Fully Diluted
Shares Outstanding 38.7 38.7
(1) EBITDA is calculated as income from operations plus depreciation
and amortization included in income from operations.
(2) Special items, net of tax, relate to restructuring activities
($1.1 million), Genie and Demag inventory fair value accounting
treatment ($2.0 million) and write down of certain assets within
the EarthKing subsidiary ($1.7 million), offset partially by a
favorable ruling on a legal claim ($1.7 million).
(3) Special items, net of tax, relate to restructuring charges ($0.8
million) and the impact of adopting SFAS No. 141 "Business
Combinations" and SFAS No. 142 "Goodwill and Other Intangible
Assets" ($113.4 million).
(4) Acquisitions excluded are Demag, Genie, Pacific Utility, Telelect
Southeast, Advance Mixer, Commercial Body and Combatel.
Segment Performance
Terex Construction
Three months ended March 31,
------------------------------------------------------
2003 2002
-------------------------- ---------------------------
(in millions)
Excluding Excluding
Special Special Special Special
Reported Items Items Reported Items Items
-------------------------- ---------------------------
Net Sales $ 326.1 $ --- $ 326.1 $ 264.3 $ --- $ 264.3
======== ======= ======== ======== ======= =========
Gross profit $ 42.9 $ --- $ 42.9 $ 40.0 $ --- $ 40.0
SG&A 28.2 --- 28.2 24.5 --- 24.5
--------- ------- -------- -------- ------- ---------
Income from
Operations $ 14.7 $ --- $ 14.7 $ 15.5 $ --- $ 15.5
Backlog $ 94.9 $ 94.9 $ 132.7 $ 132.7
Net sales in the Terex Construction group for the first quarter of
2003 increased $61.8 million to $326.1 million from $264.3 million in
the first quarter of 2002. Improvements in the off-highway truck
business, double-digit growth in the Powerscreen businesses, and top
line improvements in the Atlas and Schaeff businesses drove the
increase. SG&A expenses for the first quarter of 2003 were $28.2
million, or 8.7% of sales, compared to $24.5 million, or 9.3% of
sales, in the first quarter of 2002. Income from operations for the
quarter was $14.7 million, or 4.5% of sales, compared to $15.5
million, or 5.9% of sales, for the first quarter of 2002.
"Although we continue to operate in a difficult and competitive
environment, the Terex Construction group had a solid first quarter,"
commented Colin Robertson, President - Terex Construction. "The growth
in our Powerscreen business and our penetration into the Spanish
market with our whole portfolio of products has helped offset
otherwise weak end markets. We are also starting to see some results
from the actions we began implementing in 2002. Atlas and Schaeff
reported strong top line growth as we penetrated new markets outside
of Germany, and Atlas was also profitable for the quarter as cost
reductions flowed to the bottom line. We made progress on the
consolidation of our Benford and Fermec locations into our new
manufacturing facility in Coventry, U.K., and expect our cost saving
initiatives to impact our second half results."
"Like all Terex operations, Terex Construction is focused on
generating cash and improving working capital management," commented
Mr. Robertson. "During the quarter we were able to improve our
position while continuing to have sufficient inventory to sell for the
typically stronger second quarter. We feel there is additional
progress we can make here and generate meaningful cash results."
Terex Cranes
Three months ended March 31,
------------------------------------------------------
2003 2002
-------------------------- ---------------------------
(in millions)
Excluding Excluding
Special Special Special Special
Reported Items(1) Items Reported Items Items
-------------------------- ---------------------------
Net Sales $ 237.9 $ --- $ 237.9 $ 135.1 $ --- $ 135.1
======== ====== ======== ======== ======= =========
Gross profit $ 27.2 $ 2.4 $ 29.6 $ 16.8 $ --- $ 16.8
SG&A 20.4 --- 20.4 9.5 --- 9.5
-------- ------ -------- -------- ------- ---------
Income from
Operations $ 6.8 $ 2.4 $ 9.2 $ 7.3 $ --- $ 7.3
Backlog $ 189.5 $ 189.5 $ 46.8 $ 46.8
(1) Special items relate to restructuring activities and the Demag
inventory fair value accounting treatment.
Net sales in the Terex Cranes group for the first quarter of 2003
increased $102.8 million to $237.9 million from $135.1 million in the
first quarter of 2002. Excluding the impact of the Demag acquisition,
net sales for the quarter were down over 30%, reflecting the weak
market for hydraulic mobile cranes and lattice boom cranes in the
North American markets. SG&A expenses increased to $20.4 million, or
8.6% of sales, in the first quarter of 2003 from $9.5 million, or 7.0%
of sales, in the first quarter of 2002. Excluding the impact of Demag,
SG&A expenses decreased slightly in the first quarter of 2003 compared
to the first quarter of 2002, as the Terex Cranes group continued to
focus on costs and right sizing its business for the current
environment. Income from operations, excluding special items,
increased to $9.2 million, or 3.9% of sales, for the first quarter of
2003 from $7.3 million, or 5.4% of sales, for the first quarter of
2002. Negatively impacting operating margin for the first quarter was
the conversion of used equipment and discontinued product lines to
cash at reduced margins.
"Our global presence has clearly helped balance our performance in
the first quarter," commented Fil Filipov, President - Terex Cranes.
"Although the North American market remains depressed for mobile
telescopic and lattice boom cranes, we had success in other markets to
partially offset this. Our results were favorably impacted by the
inclusion of Demag for the quarter and the benefit Demag had on our
PPM branded cranes that were integrated into the Demag sales
organization. In addition, Italy and Spain remained strong markets and
we had some success in the U.K. and Asia / Pacific region."
Mr. Filipov continued, "In this difficult environment, we continue
to manage the business for cash. In particular, we have been
aggressive in converting used equipment into cash at reduced margins.
Although this has impacted the overall operating margin of the group,
we feel this is the right decision at this time. Our restructuring in
the Terex Cranes group and integration of Demag continue on track and
we expect to see the benefits of these actions throughout 2003."
Terex Roadbuilding, Utility Products and Other
Three months ended March 31,
------------------------------------------------------
2003 2002
-------------------------- ---------------------------
(in millions)
Excluding Excluding
Special Special Special Special
Reported Items(1) Items Reported Items(2) Items
-------------------------- ---------------------------
Net Sales $ 158.1 $ --- $ 158.1 $ 132.6 $ --- $ 132.6
======== ======= ======== ======== ======= =========
Gross profit $ 19.7 $ 2.4 $ 22.1 $ 26.3 $ 1.2 $ 27.5
SG&A 18.3 (0.3) 18.0 17.9 --- 17.9
-------- ------- -------- -------- ------- ---------
Income from
Operations $ 1.4 $ 2.7 $ 4.1 $ 8.4 $ 1.2 $ 9.6
Backlog $ 120.4 $ 120.4 $ 76.9 $ 76.9
(1) Special items relate to restructuring activities and the write
down of certain assets within the EarthKing subsidiary.
(2) Special items relate to restructuring activities.
Net sales for the Terex Roadbuilding and Utility Products group
for the first quarter of 2003 increased $25.5 million to $158.1
million from $132.6 million for the first quarter of 2002, driven
primarily by the acquisitions of Advance Mixer, Pacific Utility,
Telelect Southeast, Commercial Body and Combatel. Excluding the impact
of acquisitions, sales decreased approximately 5%, due primarily to
decreases in the Roadbuilding group. SG&A expenses, excluding special
items, for the first quarter of 2003 were $18.0 million, or 11.4% of
sales, compared to $17.9 million, or 13.5% of sales, in the first
quarter of 2002. Excluding the impact of acquisitions, SG&A expenses
decreased to $13.7 million. Income from operations, excluding special
items, decreased to $4.1 million, or 2.6% of sales, from $9.6 million,
or 7.2% of sales, in the first quarter of 2002.
"The Roadbuilding and Utility Products group had mixed results in
the first quarter," commented Mr. DeFeo. "We are pleased with the
investments we have made in the distribution channel for our utility
products. In addition to positioning us to better serve and penetrate
the large investor owned utilities and municipalities market, it has
also provided a great platform to cross sell other Terex products,
particularly loader backhoes, mini excavators and boom trucks." Mr.
DeFeo continued, "Our Roadbuilding business, however, continues to
face challenging end markets. This business continues to be impacted
negatively by budget issues at the federal, state and local levels. We
do not see any improvements in these markets in the near-term. We will
continue to aggressively manage these businesses in the short term and
right size them for the current operating environment."
"We recently announced several changes in this group. First, we
reduced personnel at CMI Terex operations by 146, modified production
plans accordingly, and implemented a new structure to market its
products more effectively. We promoted Rick Nichols from Vice
President of Operations in our Mining group to General Manager of our
Cedarapids, Simplicity, Jacques and Canica infrastructure businesses.
Rick brings strong operations experience to these businesses,"
commented Mr. DeFeo. "At both CMI Terex and the infrastructure
businesses we can make rapid progress at lowering costs, adapting to
this tough market and lowering working capital. This will remain a
primary focus."
Terex Aerial Work Platforms
Three months ended March 31,
------------------------------------------------------
2003 2002
-------------------------- ---------------------------
(in millions)
Excluding Excluding
Special Special Special Special
Reported Items(1) Items Reported Items Items
-------------------------- ---------------------------
Net Sales $ 139.3 $ --- $ 139.3 $ --- $ --- $ ---
======== ====== ======== ======== ======= =========
Gross profit $ 28.3 $ 0.7 $ 29.0 $ --- $ --- $ ---
SG&A 13.0 --- 13.0 --- --- ---
-------- ------ -------- -------- ------- ---------
Income from
Operations $ 15.3 $ 0.7 $ 16.0 $ --- $ --- $ ---
Backlog $ 17.0 $ 17.0 $ --- $ ---
(1) Special items relate to Genie fair value accounting treatment.
The Terex Aerial Work Platforms group represents the results of
Genie Holdings, Inc. and its subsidiaries since their acquisition by
Terex on September 18, 2002.
Net sales for the Terex Aerial Work Platforms group for the first
quarter of 2003 were $139.3 million. SG&A expense were $13.0 million,
or 9.3% of sales, for the first quarter of 2003. Excluding the impact
of special items, income from operations was $16.0 million, or 11.5%
of sales.
"We are very pleased with our first quarter results," said Bob
Wilkerson, President-Terex Aerial Work Platforms. "Our first quarter
sales were up slightly when compared to the first quarter of 2002,
however our operating margins improved significantly. Our cost
reduction and integration focus is yielding results. Although the end
markets remain weak as the large rental companies have cut their
capital spending from 2002 levels, particularly in the U.S., we have
been able to offset this with additional business, primarily in
Europe, and by supporting our historical customer base in these
difficult times." Mr. Wilkerson added, "The Genie lean manufacturing
approach continues to help us deliver strong profits and remain
competitive. We have been able to maintain our independence at Genie
because our operating approach was already very similar to the Terex
model. We also have taken a renewed focus on cost reduction and in
conjunction with Terex we successfully implemented our 100 day plan
following acquisition."
"The long term outlook for Aerial Work Platforms remains positive,
as the product category continues to find new uses. In the short term,
however, there continues to be excess supply in the market even though
the number of primary competitors has been reduced. We believe the
design team of Genie will continue to play a key role in our long term
competitiveness as we introduce new products in response to the needs
of the market," commented Mr. Wilkerson. "The rental channel is still
a long term growth area, and we expect to benefit as we add other
Terex products to Genie's portfolio."
Terex Mining
Three months ended March 31,
------------------------------------------------------
2003 2002
-------------------------- ---------------------------
(in millions)
Excluding Excluding
Special Special Special Special
Reported Items(1) Items Reported Items Items
-------------------------- ---------------------------
Net Sales $ 80.0 $ --- $ 80.0 $ 65.3 $ --- $ 65.3
======== ====== ======== ======== ======= =========
Gross profit $ 11.9 $ 0.1 $ 12.0 $ 8.1 $ --- $ 8.1
SG&A 7.3 --- 7.3 6.5 --- 6.5
-------- ------ -------- -------- ------- ---------
Income from
Operations $ 4.6 $ 0.1 $ 4.7 $ 1.6 $ --- $ 1.6
Backlog $ 44.5 $ 44.5 $ 43.5 $ 43.5
(1) Special items relates to restructuring activities.
Net sales for the Terex Mining group for the first quarter of 2003
increased $14.7 million to $80.0 million from $65.3 million in the
first quarter of 2002. The increase in sales is related to a
combination of surface mining trucks and hydraulic shovels sold in the
South African and Australian markets. Income from operations,
excluding special items, increased to $4.7 million, or 5.9% of sales,
in the first quarter of 2003 from $1.6 million, or 2.5% of sales, in
the first quarter of 2002 as the cost saving initiatives implemented
in 2002 began to pay dividends.
"The improvement in the first quarter results were the direct
result of the difficult decisions made and implemented in 2002,"
commented Thys de Beer, President Terex - Mining. "The closure of the
Tulsa manufacturing facility, improving the cost structure of the
group, and the resolution of certain service and warranty contracts in
late 2002 are now behind us. However, the short-term outlook remains
depressed, as mining customers continue to push off decisions and find
alternatives via consolidation and product rationalization as opposed
to buying new equipment. While we had a good first quarter, the second
quarter remains very challenging at this point in time."
Capital Structure
"Cash flow from operations for the first quarter of 2003 was
$114.9 million," commented Phil Widman, Senior Vice President and
Chief Financial Officer. "We continued to build on the momentum
started in the fourth quarter of 2002 and over the last two quarters
we generated $177 million in cash flow from operations and reduced net
debt by $188 million. During the quarter we generated $90 million in
cash from working capital reductions, which is significant given the
seasonal trends of the business and the fact that the first quarter of
the year is usually the quarter in which we invest in working capital
in preparation for the selling season. We remain committed to
generating at least $150 million in cash flow from working capital
reductions in 2003. Working capital as a percent of trailing three
month annualized sales was 29% at the end of the first quarter of 2003
compared to 34% at the end of 2002."
Net debt (defined as total debt less cash) at the end of the first
quarter of 2002 decreased $100.1 million to $1,108.9 million, from
$1,209.0 million at the end of 2002. Net debt to book capitalization
at the end of the first quarter of 2003 was 58.1%, compared to 61.1%
at the end of 2002. Mr. Widman added, "With respect to our bank
covenants, we remain well within our limits for compliance at March
31, 2003."
Outlook
"We continue to operate in a challenging environment," commented
Mr. DeFeo. "We did not expect any help from the end markets in 2003
and we do not see any. However, we remain confident of our ability to
achieve the guidance we previously provided and to meet our working
capital and debt reduction targets, as we continue to run the business
for cash flow. Although our earnings were meaningfully higher in the
first quarter compared to our earlier guidance of a 20% - 25%
improvement, it is still too early to determine if these gains can be
sustained throughout the entire year. I anticipate that the first half
results for 2003 will represent approximately 60% of 2003 earnings, as
compared to our previous guidance of 55%. We are doing a lot of things
right, but the economic winds in our markets have not yet shifted."
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 continuing weak
general economic conditions may affect the sales of its products and
its financial results; construction and mining activity are affected
by interest rates and government spending; the ability to successfully
integrate new businesses may affect Terex's future performance;
changes in Terex's 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; the dependence of some of Terex's customers relying on third
party financing to purchase its products; 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 Securities and Exchange Commission. 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 annual 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.
Terex Corporation
500 Post Road East, Suite 320, Westport, Connecticut 06880
Telephone: (203) 222-7170, Fax: (203) 222-7976, www.terex.com
TEREX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months
Ended March 31,
-----------------
2003 2002
-------- --------
Net sales $ 927.7 $ 582.0
Cost of goods sold 798.0 490.7
-------- --------
Gross profit 129.7 91.3
Selling, general and administrative expenses 88.4 59.8
-------- --------
Income from operations 41.3 31.5
Other income (expense):
Interest income 1.7 0.8
Interest expense (25.9) (22.0)
Other income (expense) - net 0.3 (1.2)
-------- --------
Income from continuing operations before income taxes
& extraordinary items 17.4 9.1
Provision for income taxes (4.9) (2.9)
-------- --------
Income before extraordinary items 12.5 6.2
Cumulative effect of change in accounting principle --- (113.4)
-------- --------
Net income (loss) $ 12.5 $(107.2)
======== ========
EARNINGS PER SHARE: -
Basic:
Income from operations $ 0.26 $ 0.16
Cumulative effect of change in accounting
Principle --- (2.98)
-------- --------
Net income (loss) $ 0.26 $ (2.82)
======== ========
Diluted:
Income from operations $ 0.26 $ 0.16
Cumulative effect of change in accounting
Principle --- (2.93)
-------- --------
Net income (loss) $ 0.26 $ (2.77)
======== ========
Weighted average number of common and common
equivalent shares outstanding in per share
calculation
Basic 47.8 38.0
Diluted 49.0 38.7
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions, except par value)
(unaudited)
March December
31, 31,
2003 2002
---------- ----------
CURRENT ASSETS
Cash and cash equivalents $ 419.9 $ 352.2
Trade receivables 597.8 578.6
Inventories 1,079.0 1,106.3
Other current assets 158.2 184.0
---------- ----------
Total Current Assets 2,254.9 2,221.1
LONG-TERM ASSETS
Property, plant and equipment 304.5 309.4
Goodwill 635.2 622.9
Other assets 485.4 472.3
---------- ----------
TOTAL ASSETS $ 3,680.0 $ 3,625.7
========== ==========
CURRENT LIABILITIES
Notes payable and current portion of long-term
debt $ 71.4 $ 74.1
Trade accounts payable 597.5 542.9
Accrued compensation and benefits 83.9 74.0
Accrued warranties and product liability 82.0 86.0
Other current liabilities 324.7 329.2
---------- ---------
Total Current Liabilities 1,159.5 1,106.2
NON CURRENT LIABILITIES
Long-term debt, less current portion 1,457.4 1,487.1
Other 262.4 263.2
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common Stock, $0.01 par value --
Authorized 150.0 shares; issued 49.2 and 48.6
shares at March 31, 2003 and December 31,
2002, respectively 0.5 0.5
Additional paid-in capital 782.9 772.7
Retained earnings 79.9 67.4
Accumulated other comprehensive income (loss) (44.8) (53.6)
Less cost of shares of common stock in treasury
(1.2 shares at March 31, 2003 and December 31,
2002) (17.8) (17.8)
---------- ----------
Total Stockholders' Equity 800.7 769.2
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,680.0 $ 3,625.7
========== ==========
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
Three Months Ended
March 31,
---------------------
2003 2002
---------- ----------
OPERATING ACTIVITIES
Net income (loss) $ 12.5 $ (107.2)
Adjustments to reconcile net income (loss) to
cash provided by (used in) operating
activities:
Depreciation 12.9 6.9
Amortization 2.7 1.4
Impairment charges and asset write downs 1.7 113.4
Gain on sale of fixed assets (0.5) ---
Changes in operating assets and liabilities
(net of effects of acquisitions):
Trade receivables (9.3) (53.3)
Inventories 40.4 (12.0)
Trade accounts payable 59.1 34.3
Other, net (4.6) 2.0
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Net cash provided by (used in) operating
activities 114.9 (14.5)
---------- ----------
INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired (8.5) (72.5)
Capital expenditures (8.6) (5.9)
Proceeds from sale of assets 2.6 0.4
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Net cash used in investing activities (14.5) (78.0)
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FINANCING ACTIVITIES
Principal borrowings (repayments) of long-term
debt (1.5) 0.7
Net borrowings (repayments) under revolving line
of credit agreements (22.5) 1.6
Other (11.6) (0.3)
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Net cash provided by (used in) financing
activities (35.6) 2.0
---------- ----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS 2.9 (1.1)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 67.7 (91.6)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 352.2 250.4
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CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 419.9 $ 158.8
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CONTACT: Terex Corporation, Westport
Kevin O'Reilly, Vice President, 203/222-5943
SOURCE: Terex Corporation