WESTPORT, Conn.--(BUSINESS WIRE)--Jan. 7, 2004--Terex Corporation
(NYSE: TEX) today announced that its joint venture, American Truck
Company (ATC), of which Terex is a two-thirds owner, has been awarded
and entered into a contract with the U.S. Army Tank-armaments and
Automotive Command (TACOM) to supply the Ministry of Defense of Israel
(IMOD) with 302 medium tactical trucks and associated logistics
support. The trucks are being supplied to Israel by the United States
under the U.S. Foreign Military Sales program. The initial value of
this order is approximately $54 million before options. IMOD also has
options to purchase an additional 243 trucks for value in excess of
$40 million. The announcement follows the conclusion of a lengthy
competition between ATC and other U.S. military truck manufacturers
that included extended testing of vehicles and an evaluation of
after-market support capabilities, as well as lengthy formal
discussions with TACOM and IMOD to finalize the contract details.
The procurement includes a combination of cargo carriers (some
with material handling cranes) incorporating ATC's high mobility 12.5
metric ton payload 6x6 tactical vehicles. Additionally, ATC will
provide extensive driver and maintenance training, in-country service
and spare parts. Delivery of trucks and training materials will be
performed over the next 12-14 months.
ATC trucks are based on the proprietary design developed and
tested over many years by Terex's subsidiary, Tatra a.s., and features
a "central backbone" chassis design with an all-wheel drive suspension
that can be configured as 4x4, 6x6, 8x8, 10x10, and even 12x12. This
modularity of the chassis and suspension design lends itself to a
diverse range of vehicle configurations, including cargo carriers,
load handling systems, weapon platforms, tankers, firefighting
vehicles, aerial work platforms and more in a payload range from 5 to
40 tons.
"First, it is important to mention that Terex is both proud and
grateful for this opportunity to supply one of the military's most
discriminating customers with our trucks and services," commented
Ronald M. DeFeo, Terex's Chairman and Chief Executive Officer. "Terex
made the decision to invest in Tatra and ATC in January 2002 with a
belief that the Tatra design, combined with Terex's knowledge and
experience in manufacturing, sourcing, and assembly, would provide
superior value and performance for our military customers."
"ATC has come together as planned. With Terex solidly driving this
process today we expect to learn about doing business with various
military establishments around the world so that we can offer a full
complement of rugged transport vehicles," continued Mr. DeFeo. "Terex
has a lot of interest in this area and are well-positioned to meet or
exceed the demanding requirements of this customer base. We have
significant off-road vehicle experience that we can bring to this
market and we know how to deliver value. We look forward to competing
for additional business in the future."
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 to interest rates and government
spending; 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; 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, Director, Investor Relations
203-222-5943
SOURCE: Terex Corporation