-- Sales increased 13% to $1,044 million
-- Net income was $17 million, an increase of 42%
-- Backlog up $335 million, or 73%, compared with first quarter
2003
WESTPORT, Conn.--(BUSINESS WIRE)--April 21, 2004--Terex
Corporation (NYSE: TEX) today announced net income for the
first quarter of 2004 of $17.0 million, or $0.34 per share, compared
to net income of $12.0 million, or $0.24 per share, for the first
quarter of 2003. Using the 2003 tax rate of 28%, net income for the
first quarter of 2004 would have been $17.6 million, or $0.35 per
share. While there were no special items during the first quarter of
2004, excluding the impact of special items for the first quarter of
2003, net income was $15.6 million, or $0.32 per share for the first
quarter of 2003. Special items for the first quarter of 2003 included
charges for previously announced restructuring actions, inventory
valuation adjustments related to the Demag and Genie acquisitions,
charges related to the Company's deferred compensation plan and the
write down of certain assets within the EarthKing subsidiary, offset
partially by a favorable ruling on a legal claim. Net sales increased
to $1,043.8 million in the first quarter of 2004, an increase of 12.5%
from $927.7 million in the first quarter of 2003, aided in part by
currency translation and the acquisition of Tatra in the second half
of 2003. Cash flow from operations was a use of $64.4 million during
the first quarter of 2004 and net debt (consisting of long-term debt,
including current portion of long-term debt, less cash and cash
equivalents) increased by $74.1 million from December 31, 2003 levels.
"We are encouraged by current trends and our performance in the
first quarter. We are basically right where we expected to be at this
point in time," commented Ronald M. DeFeo, Terex's Chairman and Chief
Executive Officer. "While different product groups are experiencing
varying degrees of recovery, overall we are experiencing a
strengthened backlog and moderate revenue growth. As we adjust to the
higher production levels anticipated for the balance of this year we
are experiencing modest dislocations of supply that we feel are
natural in a recovery. Steel prices also remain a concern."
"Over the past several years we have become accustomed to working
with a very small backlog. The surge in backlog is encouraging, but we
realize that this may not be entirely indicative of future trends. The
businesses that we would expect to be improved early in an economic
recovery are showing stronger trends. The aerial work platform and
compact construction equipment businesses are doing particularly well.
We expect mining will also do well this year given the expressed
customer intentions. Powerscreen continues to perform well as it was
impacted minimally by the sluggish economy over the past few years.
However, we have our challenges as the Company has experienced
tremendous growth over the past couple of years. Many of these
challenges are being addressed through the Terex Improvement Process,
or TIP, that was introduced earlier this year."
"Improvement in our working capital (the sum of accounts
receivable and inventory less accounts payable) relative to sales as
reflected in year-over-year period comparisons clearly demonstrates a
process improvement emphasis." Mr. DeFeo continued, "Given the
seasonality of our business, we fully expected the first quarter to
show a net use of working capital in anticipation of the selling
season and given the increase in the backlog. However, compared to
last year the Company's working capital levels are approximately five
percentage points better as measured relative to sales."
"We are continuing to make progress in our other TIP initiatives
as well," Mr. DeFeo added. "While we are facing supply challenges and
purchasing/currency cost increases the broader focus we have placed on
margin improvement should pay dividends as we leverage purchasing,
improve productivity and price our products to take into account these
cost increases. The recent Bauma show was a testimony to the process
of change underway within Terex as customers saw the cross purchasing
opportunities available between our broad product offerings. The
marketing concepts being developed within TIP are in the early stages
but are seen as very positive from our customers' eyes."
In this press release Terex refers to various non-GAAP (generally
accepted accounting principles) financial measures. These measures may
not be comparable to similarly titled measures being disclosed by
other companies. 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 2004 and 2003 and the reported
numbers excluding special items. Terex believes that this information
is useful to understanding its operating results and the ongoing
performance of its underlying businesses without the impact of special
items. Terex also discloses EBITDA and net debt, as they are commonly
referred to financial metrics used in the investing community. Terex
believes that disclosure of EBITDA and net debt will be helpful to
those reviewing its performance and that of other comparable
companies, as EBITDA and net debt provide information on Terex's
leverage position, ability to meet debt service and capital
expenditure and working capital requirements, and EBITDA is also an
indicator of profitability.
A financial summary is shown below:
Three months ended March 31,
2004
(in millions, except per share amounts)
Special Excluding
Reported Items Special Items
-----------------------------------------------
Net Sales $ 1,043.8 $ --- $ 1,043.8
========= ========= =========
Gross profit $ 160.3 $ --- $ 160.3
SG&A 112.0 --- 112.0
--------- --------- ---------
Income from
Operations 48.3 --- 48.3
Other income
(expense) (23.9) --- (23.9)
Provision
for income
taxes (7.4) --- (7.4)
--------- --------- ---------
Net income $ 17.0 $ --- $ 17.0
========= ========= =========
Earnings
per share $ 0.34 $ 0.34 $ 0.24
EBITDA (1) $ 65.2 $ --- $ 65.2
Backlog $793.5 $793.5 $ 458.3
Average
Fully
Diluted
Shares
Outstanding 50.6 50.6
(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), write down of certain assets within the
EarthKing subsidiary ($1.7 million) and charges related to the
Company's deferred compensation plan ($0.5 million), offset partially
by a favorable ruling on a legal claim ($1.7 million).
Three months ended March 31,
2003
(in millions, except per share amounts)
Special Excluding
Reported Items (2) Special Items
-----------------------------------------------
Net Sales $ 927.7 $ --- $ 927.7
========= ========= =========
Gross profit $ 129.7 $ 5.6 $ 135.3
SG&A 89.2 (1.1) 88.1
--------- --------- ---------
Income from
Operations 40.5 6.7 47.2
Other income
(expense) (23.9) (1.6) (25.5)
Provision
for income
taxes (4.6) (1.5) (6.1)
--------- --------- ---------
Net income $ 12.0 $ 3.6 $ 15.6
========= ========= =========
Earnings $ 0.24 $ 0.32
per share
EBITDA (1) $ 54.8 $6.7 $ 61.5
Backlog $ 458.3 $ 458.3
Average
Fully
Diluted
Shares
Outstanding 49.0 49.0
(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), write down of certain assets within the
EarthKing subsidiary ($1.7 million) and charges related to the
Company's deferred compensation plan ($0.5 million), offset partially
by a favorable ruling on a legal claim ($1.7 million).
Segment Performance
Terex Construction
Three months ended March 31,
(in millions)
2004 2003
% %
of of
sales sales
Net sales $ 389.7 $ 318.2
======= =======
Gross profit $ 52.4 13.4% $ 41.7 13.1%
SG&A 36.2 9.3% 27.5 8.6%
------- -------
Income from operations $ 16.2 4.2% $ 14.2 4.5%
======= =======
Backlog $ 222.5 $ 92.9
Net sales in the Terex Construction group for the first quarter of
2004 increased $71.5 million to $389.7 million from $318.2 million in
the first quarter of 2003. The increase in sales was driven primarily
by changes in currency rates, improvements in the scrap handling
business, growth throughout the compact equipment businesses as they
benefit from leveraging the strength of Terex's product offering, and
continued good performance by the crushing and screening businesses,
particularly in the U.S. SG&A expenses for the first quarter of 2004
were $36.2 million, or 9.3% of sales, compared to $27.5 million, or
8.6% of sales, in the first quarter of 2003, largely due to currency
translation. Income from operations for the quarter was $16.2 million,
or 4.2% of sales, compared to $14.2 million, or 4.5% of sales, for the
first quarter of 2003.
"The continued strong performance of our crushing and screening
business and the strength of our compact construction line were the
key drivers of our performance this quarter," commented Colin
Robertson, President - Terex Construction. "Unfortunately, the
operating margins were hampered by adverse currency exchange rates, as
much of the equipment sold into North America is manufactured in the
United Kingdom or Germany. Specifically, the off-highway truck
business was affected, given the movement of the Sterling / U.S.
dollar relationship and the shift to significantly more U.S. dollar
denominated transactions. We have initiated measures across all of our
businesses that should help to mitigate this situation."
"Looking forward, we are clearly optimistic about the prospects of
a good 2004," commented Mr. Robertson. "Each of our businesses is
showing stronger order intake and backlog today when measured against
either year end 2003 results or the first quarter of last year. The
challenge for us is to capitalize on these revenue opportunities and
drive operating profitability."
Terex Cranes
Three months ended March 31,
(in millions)
2004 2003
% %
of of
sales sales
Net sales $ 209.2 $ 237.9
======= =======
Gross profit $ 29.8 14.2% $ 29.6 12.4%
SG&A 23.4 11.2% 20.4 8.6%
------- -------
Income from operations $ 6.4 3.1% $ 9.2 3.9%
======= =======
Backlog $ 239.0 $ 189.5
Net sales in the Terex Cranes group for the first quarter of 2004
decreased $28.7 million to $209.2 million from $237.9 million in the
first quarter of 2003, reflecting reduction in the level of used crane
sales when compared to 2003. SG&A expenses increased to $23.4 million,
or 11.2% of sales, in the first quarter of 2004 from $20.4 million, or
8.6% of sales, in the first quarter of 2003, mainly due to currency
translation. Income from operations, excluding special items,
decreased to $6.4 million, or 3.1% of sales, for the first quarter of
2004 from $9.2 million, or 3.9% of sales, for the first quarter of
2003. Continuing to negatively impact this segment is the relatively
weak market in North America for lattice boom cranes and rough terrain
telescopic cranes.
"As with last year's performance, our global presence continues to
help balance our performance in the first quarter," commented Steve
Filipov, President - Terex Cranes. "The North American market remains
depressed for mobile telescopic and lattice boom cranes, but the
success of our all terrain product line and the market strength of
certain European economies helped to partially offset this. For
example, Italy remains a strong market and we had some success in the
U.K. and the Asia/Pacific region. Our tower crane business also
continued to positively contribute to our global performance."
Mr. Filipov continued, "With the difficult North American crane
market as a backdrop, we continue to look for global growth
opportunities. However, current market conditions require additional
selling discipline to ensure profitable growth. We feel that the U.S.
crane market is at the tail end of the economic trough that has
existed since 2000, and we see some important steps taking place at
our customers that point to the prospect of a stronger future."
Terex Aerial Work Platforms
Three months ended March 31,
(in millions)
2004 2003
% %
of of
sales sales
Net sales $ 168.0 $ 147.2
======= =======
Gross profit $ 36.7 21.8% $ 30.2 20.5%
SG&A 15.9 9.5% 13.7 9.3%
------- -------
Income from operations $ 20.8 12.4% $ 16.5 11.2%
======= =======
Backlog $ 77.0 $ 19.0
Net sales for the Terex Aerial Work Platforms group for the first
quarter of 2004 increased $20.8 million to $168.0 million from $147.2
million in the first quarter of 2003. The increase in sales was driven
by increased order activity by the rental channel. Income from
operations increased to $20.8 million, or 12.4% of sales, in the first
quarter of 2004 from $16.5 million, or 11.2% of sales, in the first
quarter of 2003.
"We are very pleased with our first quarter results," said Bob
Wilkerson, President-Terex Aerial Work Platforms. "Our first quarter
sales were up 14% when compared to the first quarter of 2003, while
our operating margins continued to show steady improvement. With
increasing order volumes, combined with our cost reduction and
integration focus that we sustained in 2003, the building blocks exist
to allow Genie to outperform 2003." Mr. Wilkerson added, "The rental
channel is our largest customer base. Over the past few years, they
have chosen to age their fleets in order to maximize profits and
minimize capital expenditure requirements. With improved rental
markets, we expect that rental companies will not continue to age
their fleet as much as they have in the past. As the rental channel
market continues to improve, we would expect to see some rental fleet
expansion in 2004."
Terex Mining
Three months ended March 31,
(in millions)
2004 2003
% %
of of
sales sales
Net sales $ 69.9 $ 80.0
====== ======
Gross profit $ 11.2 16.0% $ 12.0 15.0%
SG&A 9.2 13.2% 7.3 9.1%
------ ------
Income from operations $ 2.0 2.9% $ 4.7 5.9%
====== ======
Backlog $ 79.2 $ 44.5
Net sales for the Terex Mining group for the first quarter of 2004
decreased $10.1 million to $69.9 million from $80.0 million in the
first quarter of 2003. The decrease in sales is mainly attributable to
the temporary disruption in order activity due to the uncertainty
surrounding the attempted sale of the mining truck business in the
second half of 2003. Income from operations decreased to $2.0 million,
or 2.9% of sales, in the first quarter of 2004 from $4.7 million, or
5.9% of sales, in the first quarter of 2003.
"The Mining group is beginning to see significant improvement in
both orders and order activity," commented Rick Nichols, President
Terex - Mining. "While the attempted sale transaction created a
temporary disruption to our order levels, affecting our current period
revenues, the current order backlog and quotation activity indicates
that the market for mining equipment is returning. The Terex Mining
group had a very strong showing at the recent Bauma exhibit held in
Munich, Germany. We believe that commodity prices have reached a level
where we are seeing a solid pick-up in machine sales. We are looking
forward to a strong second half of 2004 for the Mining Group."
Terex Roadbuilding, Utility Products and Other
Three months ended March 31,
(in millions)
2004 2003
% %
of of
sales sales
Net sales $ 217.4 $ 158.1
======= =======
Gross profit $ 30.1 13.8% $ 22.1 14.0%
SG&A 24.9 11.5% 18.0 11.4%
------- -------
Income from operations $ 5.2 2.4% $ 4.1 2.6%
======= =======
Backlog $ 205.3 $ 120.4
Net sales for the Terex Roadbuilding, Utility Products and Other
group for the first quarter of 2004 increased $59.3 million to $217.4
million from $158.1 million for the first quarter of 2003, driven
primarily by the inclusion of Tatra's performance following its
acquisition by Terex in the second half of 2003. Excluding the impact
of the Tatra acquisition, sales increased modestly, reflecting
slightly better top line performance in almost all of the product
categories in this group. SG&A expenses for the first quarter of 2004
were $24.9 million, or 11.5% of sales, compared to $18.0 million, or
11.4% of sales, in the first quarter of 2003, again mainly due to the
acquisition of Tatra. Income from operations increased to $5.2
million, or 2.4% of sales, from $4.1 million, or 2.6% of sales, in the
first quarter of 2003.
"The Roadbuilding, Utility Products and Other group had mixed
results in the first quarter," commented Mr. DeFeo. "We are pleased
with the early contribution we are receiving from Tatra and our U.S.
military truck joint venture. Tatra is making operating improvements
and production is increasing. The American Truck Company ("ATC") was
selected during the first quarter by the U.S. Marine Corps to be one
of only two companies to supply three prototype Logistic Vehicle
System Replacement ("LVSR") trucks as part of a process to select the
supplier for a contract of over 1,000 vehicles. The selection of ATC
for the LVSR project will add some expense in the short-term which
should be recoverable as much of the funding for the development of
prototypes is expected to be provided by the U.S. Marine Corps.
Another positive was slightly better performance from our Roadbuilding
group, reflecting the cost reduction activities undertaken last year."
Mr. DeFeo continued, "However, the profitability of many of these
companies, most significantly our Utility business, was impacted by
raw material pricing increases, particularly for steel. Additionally,
the Utility business's implementation of a lean manufacturing process
had an impact on operating margins by increasing current period costs.
That being said, we feel that the Utility franchise, along with the
rest of our businesses, is well positioned for profitable growth
heading into the second quarter."
Capital Structure and Taxes
"Cash flow from operations for the first quarter of 2004 was a use
of $64.4 million," commented Phil Widman, Senior Vice President and
Chief Financial Officer. "During the quarter we used $89.1 million in
cash for working capital purposes in preparation for the second
quarter selling season. This is consistent with our comments provided
at the beginning of the year, that cash flow will more closely reflect
the seasonal trends of the business. As part of this, we would expect
to be a net user of cash in the first half of 2004, but would expect
that a significant positive cash flow will occur in the second half of
the year as we benefit from our working capital reductions, where we
are targeting a 20% working capital to revenue ratio by year end.
Working capital as a percent of trailing three month annualized sales
was 24.6% at the end of the first quarter of 2004, as compared to
29.1% at the end of the first quarter in 2003."
Net debt (defined as total debt less cash) at the end of the first
quarter of 2004 increased $74.1 million to $968.2 million, from $894.1
million at the end of 2003. Net debt to book capitalization at the end
of the first quarter of 2004 was 52.3%, compared to 50.5% at the end
of 2003. Mr. Widman added, "We are not surprised at the level of
working capital investment made in the first quarter given the
magnitude of the increase in backlog, and we will continue to focus on
balancing investment with growth."
Commenting on the effective tax rate, Mr. Widman stated, "The tax
rate for the first quarter of 2004 was 30% versus the planned full
year rate of 28%. While the full year tax rate is still expected to be
approximately 28%, the rate will fluctuate quarter to quarter as a
result of changes during the period in the assumptions on foreign
valuation allowances, the mix of income by jurisdiction, and the
impact of pending statutory reviews. We expect cash taxes for the year
to be $15 to $20 million."
Outlook
"We are enthusiastic about the full year business prospects for
the Company," commented Mr. DeFeo. "As mentioned previously, our order
intake is up measurably, and the customer interaction at the Bauma
exhibit in Munich, Germany provided us a chance to confirm that the
recovery is building momentum. We remain confident of our ability to
achieve the operating performance measures we previously provided, and
we will continue to balance operating earnings and cash flow from
operations. Our earnings for the first quarter are on-track with our
previously provided guidance, and we still anticipate that
approximately 55%-60% of 2004 earnings will materialize in the first
six months of the year."
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 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 significant 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 with 2003
revenues of $3.9 billion. The Company operates in five business
segments: Terex Construction, Terex Cranes, Terex Aerial Work
Platforms, Terex Mining, and Terex Roadbuilding, Utility Products and
Other. Terex manufactures a broad range of equipment for use in
various industries, including the construction, infrastructure,
quarrying, recycling, surface mining, shipping, transportation,
refining, utility and maintenance industries. 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 AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months
Ended March 31,
-------------------------
2004 2003
------------ ------------
Net sales $ 1,043.8 $ 927.7
Cost of goods sold 883.5 798.0
------------ ------------
Gross profit 160.3 129.7
Selling, general and administrative expenses 112.0 89.2
------------ ------------
Income from operations 48.3 40.5
Other income (expense):
Interest income 1.0 1.7
Interest expense (22.5) (25.9)
Other income (expense) - net (2.4) 0.3
------------ ------------
Income before income taxes 24.4 16.6
Provision for income taxes (7.4) (4.6)
------------ ------------
Net income $ 17.0 $ 12.0
============ ============
EARNINGS PER SHARE:
Basic $ 0.35 $ 0.25
============ ============
Diluted $ 0.34 $ 0.24
============ ============
Weighted average number of common and common
equivalent shares outstanding in per share
calculation
Basic 49.0 47.2
Diluted 50.6 49.0
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions, except par value)
(unaudited)
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS
Cash and cash equivalents $ 408.0 $ 467.5
Trade receivables 610.8 540.2
Inventories 1,101.1 1,009.7
Other current assets 172.9 176.6
------------ ------------
Total Current Assets 2,292.8 2,194.0
LONG-TERM ASSETS
Property, plant and equipment 359.4 370.1
Goodwill 606.8 603.5
Other assets 561.4 556.2
------------ ------------
TOTAL ASSETS $ 3,820.4 $ 3,723.8
============ ============
CURRENT LIABILITIES
Notes payable and current portion of long-
term debt $ 96.8 $ 86.8
Trade accounts payable 684.3 608.6
Accrued compensation and benefits 102.8 94.5
Accrued warranties and product liability 83.8 88.5
Other current liabilities 272.6 281.0
------------ ------------
Total Current
Liabilities 1,240.3 1,159.4
NON-CURRENT LIABILITIES
Long-term debt, less current portion 1,279.4 1,274.8
Other 418.1 412.9
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common Stock, $0.01 par value --
Authorized 150.0 shares; issued 50.3
and 50.0 shares at March 31, 2004 and
December 31, 2003, respectively 0.5 0.5
Additional paid-in capital 800.2 795.1
Retained earnings 58.9 41.9
Accumulated other comprehensive income 40.8 57.0
Less cost of shares of common stock in
treasury (1.2 shares at March 31, 2004
and December 31, 2003) (17.8) (17.8)
------------ ------------
Total Stockholders' Equity 882.6 876.7
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,820.4 $ 3,723.8
============ ============
TEREX CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
Three Months Ended
March 31,
-------------------------
2004 2003
------------ ------------
OPERATING ACTIVITIES
Net income $ 17.0 $ 12.0
Adjustments to reconcile net income to cash
provided by (used in) operating
activities:
Depreciation 14.3 12.9
Amortization 4.0 2.7
Impairment charges and asset write downs --- 1.7
Gain on sale of fixed assets (0.8) (0.5)
Changes in operating assets and
liabilities (net of effects of
acquisitions):
Trade receivables (71.2) (9.3)
Inventories (94.1) 40.4
Trade accounts payable 76.2 59.1
Other, net (9.8) (4.1)
------------ ------------
Net cash provided by (used in)
operating activities (64.4) 114.9
------------ ------------
INVESTING ACTIVITIES
Acquisition of businesses, net of cash
acquired (1.1) (8.5)
Capital expenditures (8.9) (8.6)
Proceeds from sale of assets 0.8 2.6
------------ ------------
Net cash used in investing
activities (9.2) (14.5)
------------ ------------
FINANCING ACTIVITIES
Principal repayments of long-term debt --- (1.5)
Proceeds from stock options exercised 4.1 ---
Net borrowings (repayments) under revolving
line of credit agreements 14.0 (22.5)
Other (3.4) (11.6)
------------ ------------
Net cash provided by (used in)
financing activities 14.7 (35.6)
------------ ------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS (0.6) 2.9
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (59.5) 67.7
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 467.5 352.2
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 408.0 $ 419.9
============ ============
Table I
TEREX CORPORATION AND SUBSIDIARIES
(in millions)
(unaudited)
Three Months Ended March 31,
---------------------------------
2004
---------------------------------
Excluding
Special Special
GAAP Items Items
---------------------------------
Sales
Construction (1).................. $ 389.7 $ --- $ 389.7
Cranes (2)........................ 209.2 --- 209.2
Aerial Work Platforms (3)......... 168.0 --- 168.0
Mining ........................... 69.9 --- 69.9
Roadbuilding, Utility Products &
Other (4)....................... 217.4 --- 217.4
Corp / Eliminations (5)........... (10.4) --- (10.4)
---------- -------- ----------
Total.......................... $ 1,043.8 $ --- $ 1,043.8
========== ======== ==========
Gross Profit
Construction (1)..................$ 52.4 $ --- $ 52.4
Cranes (2)........................ 29.8 --- 29.8
Aerial Work Platforms (3)......... 36.7 --- 36.7
Mining ........................... 11.2 --- 11.2
Roadbuilding, Utility Products &
Other (4)....................... 30.1 --- 30.1
Corp / Eliminations (5)........... 0.1 --- 0.1
---------- -------- ----------
Total..........................$ 160.3 $ --- $ 160.3
========== ======== ==========
SG&A
Construction (1)..................$ 36.2 $ --- $ 36.2
Cranes (2)........................ 23.4 --- 23.4
Aerial Work Platforms (3)......... 15.9 --- 15.9
Mining ........................... 9.2 --- 9.2
Roadbuilding, Utility Products &
Other (4)....................... 24.9 --- 24.9
Corp / Eliminations (5)........... 2.4 --- 2.4
---------- -------- ----------
Total..........................$ 112.0 $ --- $ 112.0
========== ======== ==========
Operating Income
Construction (1)..................$ 16.2 $ --- $ 16.2
Cranes (2)........................ 6.4 --- 6.4
Aerial Work Platforms (3)......... 20.8 --- 20.8
Mining ........................... 2.0 --- 2.0
Roadbuilding, Utility Products &
Other (4)....................... 5.2 --- 5.2
Corp / Eliminations (5)........... (2.3) --- (2.3)
---------- -------- ----------
Total..........................$ 48.3 $ --- $ 48.3
========== ======== ==========
2003
---------------------------------
Excluding
Special Special
GAAP Items Items
---------------------------------
Sales
Construction (1)..................$ 318.2 $ --- $ 318.2
Cranes (2)........................ 237.9 --- 237.9
Aerial Work Platforms (3)......... 147.2 --- 147.2
Mining ........................... 80.0 --- 80.0
Roadbuilding, Utility Products &
Other (4)....................... 158.1 --- 158.1
Corp / Eliminations (5)........... (13.7) --- (13.7)
---------- -------- ----------
Total..........................$ 927.7 $ --- $ 927.7
========== ======== ==========
Gross Profit
Construction (1)..................$ 41.7 $ --- $ 41.7
Cranes (2)........................ 27.2 2.4 29.6
Aerial Work Platforms (3)......... 29.5 0.7 30.2
Mining ........................... 11.9 0.1 12.0
Roadbuilding, Utility Products &
Other (4)....................... 19.7 2.4 22.1
Corp / Eliminations (5)........... (0.3) --- (0.3)
---------- -------- ----------
Total..........................$ 129.7 $ 5.6 $ 135.3
========== ======== ==========
SG&A
Construction (1)..................$ 27.5 $ --- $ 27.5
Cranes (2)........................ 20.4 --- 20.4
Aerial Work Platforms (3)......... 13.7 --- 13.7
Mining ........................... 7.3 --- 7.3
Roadbuilding, Utility Products &
Other (4)....................... 18.3 (0.3) 18.0
Corp / Eliminations (5)........... 2.0 (0.8) 1.2
---------- -------- ----------
Total..........................$ 89.2 $ (1.1) $ 88.1
========== ======== ==========
Operating Income
Construction (1)..................$ 14.2 $ --- $ 14.2
Cranes (2)........................ 6.8 2.4 9.2
Aerial Work Platforms (3)......... 15.8 0.7 16.5
Mining ........................... 4.6 0.1 4.7
Roadbuilding, Utility Products &
Other (4)....................... 1.4 2.7 4.1
Corp / Eliminations (5)........... (2.3) 0.8 (1.5)
---------- -------- ----------
Total..........................$ 40.5 $ 6.7 $ 47.2
========== ======== ==========
(1) Special items relate primarily to the closure of the Kilbeggan
facility within the Powerscreen business.
(2) Special items relate primarily to the closure of the Peiner
facility within the Tower Crane group.
(3) Special items relate to the Genie inventory fair value accounting
treatment
(4) Special items relate primarily to exiting and rationalizing
certain product categories within the Roadbuilding group.
(5) Special items relate to the Company's deferred compensation plan.
CONTACT: Terex Corporation
Investor Relations
Tom Gelston, 203-222-5943
SOURCE: Terex Corporation