WESTPORT, Conn., Apr 03, 2006 (BUSINESS WIRE) -- Terex Corporation (NYSE: TEX) today announced that it
expects first quarter 2006 earnings, excluding special items, to be in
excess of its previously indicated guidance, with the results expected
to exceed $1.20 per share, assuming an effective tax rate of 35%. Due
to its improved performance in the first quarter, and given
management's current outlook for the performance of the business for
the remainder of 2006, Terex also is increasing its fiscal year 2006
earnings per share guidance range to $5.85-$6.35 per share, excluding
special items and assuming an effective tax rate of 35%, from the
$5.50-$6.00 per share range, excluding special items, announced
earlier this year. Due to the expected increase in first quarter
earnings, Terex's timing for earnings will now be more in-line with
the prior year, with approximately 50% of earnings being delivered in
the first half of the year and 50% in the second half of the year.
"We continue to see strong performance in our Terex Aerial Work
Platforms and Materials Processing & Mining segments, and we are
encouraged by the strength of the performance so far this year of our
Terex Cranes businesses," commented Ronald M. DeFeo, Terex's Chairman
and Chief Executive Officer. "Importantly, this positive performance
includes solid results from our improving North American crane
business. A major contributor to our solid performance has been the
acceleration of production rates beyond what was previously
anticipated for the first quarter, helping to deliver quickly on our
historically high levels of backlog. Our Terex Construction segment,
now organized to include only the heavy and compact equipment
construction lines, is expected to have weaker first quarter results
than originally anticipated. However, we are optimistic about the full
year prospects for this business, given the significant product
launches that are scheduled for the middle of the second quarter."
Terex also announced today that it has obtained a waiver from its
senior bank lending group that allows the Company until April 30,
2006, to provide its lenders with its financial information for the
year ended December 31, 2005. Terex currently anticipates completing
its 2005 audited financial statements and submitting its quarterly and
annual filings for 2005 to the Securities and Exchange Commission
prior to that time.
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 approximately $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, 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
500 Post Road East, Suite 320,
Westport, Connecticut 06880
Telephone: (203) 222-7170
Fax: (203) 222-7976
www.terex.com
SOURCE: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943