WESTPORT, Conn., May 17, 2006 (BUSINESS WIRE) -- Terex Corporation (NYSE: TEX) today announced that it
has filed its Annual Report on Form 10-K for the year ended December
31, 2005 as well as its quarterly reports on Form 10-Q for the first,
second and third quarters of 2005. Terex also confirmed 2005 revenues
of $6.4 billion and announced net income of $188.5 million, or $3.69
per share, for 2005, as compared with 2004 revenues of $5.0 billion
and net income of $324.1 million, or $6.34 per share(1). Excluding the
impact of special items, net income was $208.7 million, or $4.08 per
share, in 2005(2), compared to net income of $123.1 million, or $2.41
per share, for 2004. The tax rate for 2005 was 33.1%, excluding $5.5
million of tax expense related to the repatriation of cash in
accordance with the American Jobs Creation Act, which has been
identified as a special item. Stockholders' equity as of December 31,
2005 was $1,161 million, and the Company's return on invested
capital(3) for 2005 was 21.5%.
Additionally, the Company announced that it will be holding the
Annual Meeting of Stockholders of Terex Corporation on Wednesday, May
31, 2006, at 10:00 a.m., local time, at the corporate offices of Terex
Corporation, located at 500 Post Road East, Westport, Connecticut.
(1) As previously reported, Terex's 2003 net income included a
valuation allowance of $200.7 million reducing its U.S. deferred
tax assets, negatively impacting net income. This $200.7 million
expense was reversed and has a positive effect in the 2004 period,
representing $3.93 per share of net income. The establishment of
the valuation allowance and the reversal of the valuation
allowance have each been treated as a special item in the
respective year.
(2) Special items in 2005, net of tax, include charges for
investigation costs associated with the Company's internal review
($5.7 million), the tax expense related to the repatriation of
cash in accordance with the American Jobs Creation Act ($5.5
million), asset impairment charges in relation to the American
Truck Company joint venture ($4.1 million), costs associated with
lease terminations of certain former operating locations ($2.1
million), the write-down of notes receivable associated with
previously sold businesses ($1.6 million), as well as charges
related to various restructuring activities and asset impairment
charges ($1.9 million), offset partially by the gain on the sale
of a facility in the Czech Republic ($0.7 million).
(3) Return on invested capital (ROIC) is calculated as the trailing
four quarters operating income, excluding special items, divided
by the sum of the trailing four quarters average stockholders'
equity and the trailing four quarter average net debt.
Safe Harbor Statement
The press release 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; Terex's business is sensitive
to fluctuations in 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;
Terex's continued access to capital and ability to obtain parts and
components from suppliers on a timely basis 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; possible work stoppages and other labor
matters; Terex's debt outstanding and the need to comply with
restrictive covenants contained in Terex's debt agreements; Terex's
ability to file its periodic reports with the SEC on a timely basis;
the previously announced SEC investigation of Terex; Terex's ability
to maintain adequate disclosure controls and procedures and adequate
internal controls over financial reporting; Terex's implementation of
a global enterprise system and its performance; compliance with
applicable environmental laws and regulations; product liability
claims and other liabilities arising out of Terex's business; 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 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 2005
revenue of $6.4 billion. Terex operates in five business segments:
Terex Construction, Terex Cranes, Terex Aerial Work Platforms, Terex
Materials Processing & 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, surface mining, shipping, transportation, refining, and
utility 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.
SOURCE: Terex Corporation
Terex Corporation
Tom Gelston - Director, Investor Relations
203-222-5943