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Terex Announces That Its American Truck Company Joint Venture Has Been Awarded Phase 1 Marine Corps Truck Contract

March 25, 2004

WESTPORT, Conn.--(BUSINESS WIRE)--March 25, 2004--Terex Corporation (NYSE: TEX) today announced that its joint venture, American Truck Company, LLC ("ATC"), in which Terex has a two-thirds interest, has been awarded and entered into a contract with the U.S. Marine Corps to supply three prototype Logistic Vehicle System Replacement ("LVSR") trucks. This contract, valued at $5.6 million, represents the first phase in a two-part process to determine the vehicle that ultimately will be selected by the U.S. Marine Corps for a total of up to 1,022 truck order. ATC is one of only two suppliers chosen to advance to the next phase of the proposal and evaluation process. The announcement by the U.S. Marine Corps follows the conclusion of a competition between ATC and other U.S. military truck manufacturers.

The U.S. Marine Corps will put the three ATC prototype vehicles through a 12,000-mile accelerated endurance test, performance testing, and an operational assessment conducted by Marine operators and maintainers. The LVSR program is intended to replace the Marine Corps' existing heavy fleet with more capable, robust vehicles. The anticipated vehicles will include cargo, fifth wheel and wrecker variants. The current contract is only for the system development and demonstration phase. Fabrication and testing will be limited to the cargo variant only. The three prototype LVSR trucks will be manufactured by ATC in Fort Wayne, Indiana and will be completed by March 2005.

ATC trucks are based on the proprietary design developed and tested over many years by Terex's subsidiary, Tatra a.s., and feature 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, with a payload range from five to 40 tons.

"Terex is both proud and grateful for this opportunity to compete for the supply of trucks and services to one of the military's most discriminating customers," commented Ronald M. DeFeo, Terex's Chairman and Chief Executive Officer. "We are confident in both our team of dedicated employees and in our product, and we are certain that we will deliver on our promise of a high quality product that will meet or exceed the requirements of the U.S. Marine Corps."

Safe Harbor Statement

The above contains forward looking statements based on Terex's current expectations and projections about future events. 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 and products produced for the military 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 2003 revenues of $3.9 billion. Terex is involved in a broad range of construction, infrastructure, recycling and mining-related capital equipment under the brand names of Advance, American, American Truck Company, Amida, ATC, Atlas, Bartell, Bendini, Benford, Bid-Well, Canica, Cedarapids, Cedarapids/Standard Havens, CMI Johnson Ross, CMI Terex, CMI-Cifali, Comedil, Demag, Fermec, Finlay, Franna, Fuchs, Genie, Grayhound, Hi-Ranger, Jaques, Load King, Lorain, Morrison, O&K, P&H, Payhauler, Pegson, Peiner, Powerscreen, PPM, Re-Tech, RO-Stinger, Royer, Schaeff, Simplicity, Tatra, Terex, TerexLift, Terex Power, Terex Recycling, Terex Telelect 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: For Terex Corporation, Westport
             Tom Gelston, 203-222-5943

    SOURCE: Terex Corporation
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