Bucyrus International, Inc. (Nasdaq:BUCY), a leading designer,
manufacturer and marketer of high productivity mining equipment for
surface and underground mining, announced today its summary
unaudited financial results for the quarter and six months ended
June 30, 2010.
Operating Results
On February 19, 2010, Bucyrus completed its previously announced
acquisition of Terex Corporation's mining equipment business
("Terex Mining") for $1.0 billion in cash and 5,809,731 shares of
Bucyrus' common stock, subject to certain post-closing net assets,
net debt and other adjustments. Also on February 19, 2010, Bucyrus
entered into an amendment to its existing credit agreement to
provide for an additional new secured term loan of $1.0 billion and
$167.5 million of additional revolving credit facilities. The
term loan was used to fund the cash portion of the purchase price
for Terex Mining and the revolving credit facility will be used to
support Bucyrus' future working capital needs and its capital
expenditure plan.
The financial results for the quarter and six months ended June
30, 2010 include the net assets and results of operations of Terex
Mining since the February 19, 2010 date of acquisition as well as
the preliminary acquisition accounting adjustments and acquisition
costs related to the Terex Mining acquisition. As a result, the
financial results for the quarter and six months ended June 30,
2010 are not necessarily comparative to the results for the quarter
and six months ended June 30, 2009 or as of December 31, 2009 and
may not be indicative of future results. Terex Mining has been
integrated into the surface mining segment. For this quarter,
Bucyrus has disclosed certain financial information for Terex
Mining.
Consolidated Condensed
Statements of Earnings (Unaudited) |
|
|
Quarter Ended June
30, |
Six Months Ended June
30, |
|
2010 |
2009 |
2010 |
2009 |
|
(Dollars in thousands, except
per share amounts) |
Sales |
$868,668 |
$724,436 |
$1,476,193 |
$1,330,180 |
Cost of products sold |
622,156 |
519,174 |
1,054,399 |
954,733 |
Gross profit |
246,512 |
205,262 |
421,794 |
375,447 |
Selling, general and administrative
expenses |
88,114 |
63,015 |
175,248 |
124,068 |
Research and development expenses |
16,031 |
9,200 |
29,274 |
18,576 |
Amortization of intangible assets |
13,875 |
4,441 |
22,865 |
9,605 |
Operating earnings |
128,492 |
128,606 |
194,407 |
223,198 |
Interest income |
(1,068) |
(844) |
(2,417) |
(2,430) |
Interest expense |
18,900 |
6,662 |
29,959 |
13,526 |
Other expense |
2,506 |
618 |
4,341 |
5,643 |
Earnings before income taxes |
108,154 |
122,170 |
162,524 |
206,459 |
Income tax expense |
34,943 |
39,890 |
54,299 |
67,278 |
Net earnings |
$73,211 |
$82,280 |
$108,225 |
$139,181 |
|
|
|
|
|
Net Earnings Per Share Data |
|
|
|
|
Basic: |
|
|
|
|
Net earnings per share |
$0.91 |
$1.11 |
$1.37 |
$1.87 |
Weighted average shares |
80,559,644 |
74,453,660 |
78,938,334 |
74,452,561 |
Diluted: |
|
|
|
|
Net earnings per share |
$0.89 |
$1.08 |
$1.35 |
$1.84 |
Weighted average shares |
82,136,682 |
76,012,075 |
80,408,528 |
75,487,089 |
|
|
|
|
|
Other Financial Data |
|
|
|
|
EBITDA (1) |
$155,310 |
$142,982 |
$243,177 |
$248,169 |
Non-cash stock compensation expense (2) |
2,181 |
2,606 |
4,129 |
4,990 |
(Gain) loss on disposal of fixed assets
(3) |
(31) |
373 |
1,834 |
376 |
Terex Mining acquisition costs (4) |
1,671 |
— |
15,739 |
— |
Inventory fair value adjustment charged to
cost of products sold (5) |
15,794 |
— |
22,813 |
— |
Adjusted EBITDA (6) |
$174,925 |
$145,961 |
$287,692 |
$253,535 |
|
|
|
|
|
(1) EBITDA is defined as net
earnings before net interest expense, income tax expense (benefit),
depreciation and amortization. EBITDA is presented because (i)
management uses EBITDA to measure Bucyrus' liquidity and financial
performance and (ii) management believes EBITDA is frequently used
by securities analysts, investors and other interested parties in
evaluating the performance and enterprise value of companies in
general, and in evaluating the liquidity of companies with
significant debt service obligations and their ability to service
their indebtedness. The EBITDA calculation is not an
alternative to net earnings under accounting principles generally
accepted in the United States of America as an indicator of
operating performance or of cash flows as a measure of
liquidity. Additionally, EBITDA is not intended to be a
measure of free cash flow for management's discretionary use, as it
does not consider certain cash requirements such as interest
payments, tax payments and debt service requirements. Because
not all companies use identical calculations, this presentation of
EBITDA may not be comparable to other similarly titled measures of
other companies. The following table reconciles net earnings
to EBITDA and EBITDA to net cash provided (used in) by operating
activities. |
(2) Reflects non-cash stock
compensation expense related to equity incentive plans. |
(3) Reflects
losses on the disposal of fixed assets in the ordinary course. |
(4) Reflects costs related
to the acquisition of Terex Mining. |
(5) In connection with the
acquisition of Terex Mining, inventories acquired were adjusted to
estimated fair value. This adjustment is being charged to cost of
products sold as the inventory is sold. |
(6) Adjusted EBITDA is a
material term in Bucyrus' credit agreement, which management
believes is a material agreement, and is used in the calculation of
the leverage ratio covenant thereunder. |
EBITDA Reconciliation
(Unaudited) |
|
Quarter Ended June
30, |
Six Months Ended
June 30, |
|
2010 |
2009 |
2010 |
2009 |
|
(Dollars in thousands) |
Net earnings |
$73,211 |
$82,280 |
$108,225 |
$139,181 |
Interest income |
(1,068) |
(844) |
(2,417) |
(2,430) |
Interest expense |
18,900 |
6,662 |
29,959 |
13,526 |
Income tax expense |
34,943 |
39,890 |
54,299 |
67,278 |
Depreciation |
12,945 |
9,758 |
25,905 |
19,193 |
Amortization |
16,379 |
5,236 |
27,206 |
11,421 |
EBITDA |
155,310 |
142,982 |
243,177 |
248,169 |
Changes in assets and liabilities |
(29,576) |
(137,807) |
98,298 |
(168,944) |
Non-cash stock compensation expense |
2,181 |
2,606 |
4,129 |
4,990 |
(Gain) loss on disposal of fixed assets |
(31) |
373 |
1,834 |
376 |
Interest income |
1,068 |
844 |
2,417 |
2,430 |
Interest expense |
(18,900) |
(6,662) |
(29,959) |
(13,526) |
Income tax expense |
(34,943) |
(39,890) |
(54,299) |
(67,278) |
Net cash provided by (used in) operating
activities |
$75,109 |
($37,554) |
$265,597 |
$6,217 |
|
Consolidated Condensed
Balance Sheets (Unaudited) |
|
|
June 30, 2010 |
December 31, 2009 |
|
(Dollars in thousands) |
Assets |
|
|
Cash and cash equivalents |
$279,482 |
$101,084 |
Receivables - net |
771,287 |
741,815 |
Inventories |
1,106,587 |
627,289 |
Deferred income taxes |
45,227 |
45,024 |
Prepaid expenses and other |
49,409 |
40,861 |
Total current assets |
2,251,992 |
1,556,073 |
|
|
|
Goodwill |
719,989 |
351,333 |
Intangible assets - net |
673,344 |
220,780 |
Other assets |
110,259 |
61,505 |
Total other assets |
1,503,592 |
633,618 |
Property, plant and equipment - net |
576,410 |
514,421 |
Total assets |
$4,331,994 |
$2,704,112 |
|
|
|
Liabilities and Common Stockholders'
Investment |
|
|
Accounts payable and accrued expenses |
$550,573 |
$328,722 |
Liabilities to customers on uncompleted
contracts and warranties |
266,825 |
183,097 |
Income taxes |
43,709 |
45,811 |
Current maturities of long-term debt and
short-term obligations |
17,138 |
7,566 |
Total current liabilities |
878,245 |
565,196 |
|
|
|
Deferred income taxes |
83,841 |
82,260 |
Pension and other |
209,697 |
198,000 |
Total long-term liabilities |
293,538 |
280,260 |
Long-term debt, less current maturities |
1,463,656 |
499,666 |
Common stockholders' investment |
1,696,555 |
1,358,990 |
Total liabilities and common
stockholders' investment |
$4,331,994 |
$2,704,112 |
|
Segment Information
(Unaudited) |
|
|
Quarter Ended June 30,
2010 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$605,377 |
$96,984 |
$18,517 |
$16,726 |
$2,885,496 |
Underground mining |
263,291 |
40,689 |
8,302 |
6,937 |
1,446,498 |
Total operations |
868,668 |
137,673 |
26,819 |
23,663 |
4,331,994 |
Corporate |
— |
(9,181) |
— |
— |
— |
Consolidated total |
$868,668 |
128,492 |
26,819 |
$23,663 |
$4,331,994 |
Interest income |
|
(1,068) |
— |
|
|
Interest expense |
|
18,900 |
— |
|
|
Other expense |
|
2,506 |
2,505 |
|
|
Earnings before income taxes |
|
$108,154 |
$29,324 |
|
|
Terex Mining results included in the table above were as
follows:
|
Quarter Ended June 30,
2010 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
|
|
|
|
|
|
Surface mining (1) |
$277,123 |
$17,727 |
$11,368 |
$926 |
$1,656,329 |
Interest income |
|
(74) |
— |
|
|
Interest expense |
|
14 |
— |
|
|
Loss before income taxes |
|
$17,787 |
$11,368 |
|
|
|
|
|
|
|
|
(1) Operating earnings include
inventory fair value adjustments charged to cost of products sold
of $15.8 million. This amount is not included in the depreciation
and amortization column. |
|
|
|
Quarter Ended June 30,
2009 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$356,042 |
$81,205 |
$5,591 |
$9,682 |
$1,109,720 |
Underground mining |
368,394 |
55,169 |
8,608 |
3,454 |
1,548,050 |
Total operations |
724,436 |
136,374 |
14,199 |
13,136 |
2,657,770 |
Corporate |
— |
(7,768) |
— |
— |
— |
Consolidated total |
$724,436 |
128,606 |
14,199 |
$13,136 |
$2,657,770 |
Interest income |
|
(844) |
— |
|
|
Interest expense |
|
6,662 |
— |
|
|
Other expense |
|
618 |
795 |
|
|
Earnings before income
taxes |
|
$122,170 |
$14,994 |
|
|
|
Six Months Ended
June 30, 2010 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$1,002,948 |
$163,572 |
$31,910 |
$20,901 |
$2,885,496 |
Underground mining |
473,245 |
61,957 |
16,860 |
9,486 |
1,446,498 |
Total operations |
1,476,193 |
225,529 |
48,770 |
30,387 |
4,331,994 |
Corporate |
— |
(31,122) |
— |
— |
— |
Consolidated total |
$1,476,193 |
194,407 |
48,770 |
$30,387 |
$4,331,994 |
Interest income |
|
(2,417) |
— |
|
|
Interest expense |
|
29,959 |
— |
|
|
Other expense |
|
4,341 |
4,341 |
|
|
Earnings before income taxes |
|
$162,524 |
$53,111 |
|
|
Terex Mining results included in the table above were as
follows:
|
Six Months Ended June 30,
2010 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
|
|
|
|
|
|
Surface mining (1) |
$369,320 |
$14,862 |
$17,125 |
$1,159 |
$1,656,329 |
Interest income |
|
(130) |
— |
|
|
Interest expense |
|
17 |
— |
|
|
Earnings before income taxes |
|
$14,975 |
$17,125 |
|
|
|
|
|
|
|
|
(1) Operating earnings include
inventory fair value adjustments charged to cost of products sold
of $22.8 million. This amount is not included in the depreciation
and amortization column. |
|
Six Months Ended
June 30, 2009 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$667,045 |
$146,237 |
$11,260 |
$18,273 |
$1,109,720 |
Underground mining |
663,135 |
92,516 |
17,538 |
6,064 |
1,548,050 |
Total operations |
1,330,180 |
238,753 |
28,798 |
24,337 |
2,657,770 |
Corporate |
— |
(15,555) |
— |
— |
— |
Consolidated total |
$1,330,180 |
223,198 |
28,798 |
$24,337 |
$2,657,770 |
Interest income |
|
(2,430) |
— |
|
|
Interest expense |
|
13,526 |
— |
|
|
Other expense |
|
5,643 |
1,816 |
|
|
Earnings before income taxes |
|
$206,459 |
$30,614 |
|
|
Sales consisted of the following:
|
Quarter Ended June
30, |
Six Months Ended
June 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
Surface Mining: |
|
|
|
|
|
|
Original equipment |
$282,958 |
$150,327 |
88.2% |
$453,127 |
$297,303 |
52.4% |
Aftermarket parts and service |
322,419 |
205,715 |
56.7% |
549,821 |
369,742 |
48.7% |
|
605,377 |
356,042 |
70.0% |
1,002,948 |
667,045 |
50.4% |
Underground Mining: |
|
|
|
|
|
|
Original equipment |
152,521 |
216,522 |
(29.6%) |
250,347 |
397,590 |
(37.0%) |
Aftermarket parts and service |
110,770 |
151,872 |
(27.1%) |
222,898 |
265,545 |
(16.1%) |
|
263,291 |
368,394 |
(28.5%) |
473,245 |
663,135 |
(28.6%) |
Total: |
|
|
|
|
|
|
Original equipment |
435,479 |
366,849 |
18.7% |
703,474 |
694,893 |
1.2% |
Aftermarket parts and service |
433,189 |
357,587 |
21.1% |
772,719 |
635,287 |
21.6% |
|
$868,668 |
$724,436 |
19.9% |
$1,476,193 |
$1,330,180 |
11.0% |
The increase in surface mining original equipment sales for the
quarter and six months ended June 30, 2010 compared to the same
periods of 2009 was primarily due to the inclusion of $133.5
million and $168.9 million of Terex Mining sales in 2010,
respectively. Excluding the impact of Terex Mining, original
equipment sales decreased by approximately 1% and 4% for the
quarter and six months ended June 30, 2010, respectively, compared
to the same periods of 2009.
The increase in surface mining aftermarket parts and service
sales for the quarter and six months ended June 30, 2010 compared
to the same periods of 2009 was primarily due to the inclusion of
$143.6 million and $200.4 million of Terex Mining sales in 2010,
respectively. Excluding the impact of Terex Mining, aftermarket
parts and service sales decreased by approximately 13% and 5% for
the quarter and six months ended June 30, 2010, respectively,
compared to the same periods of 2009, primarily due to lower sales
in the United States market, partially offset by increases in the
South American market.
The decrease in underground mining original equipment sales for
the quarter and six months ended June 30, 2010 compared to the same
periods of 2009 was in all product lines.
The decrease in underground mining aftermarket parts and service
sales for the quarter and six months ended June 30, 2010 compared
to the same periods of 2009 was primarily in the United States and
eastern European markets.
Gross profit and gross margin were as follows:
|
Quarter Ended June
30, |
Six Months Ended
June 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
Gross profit |
$246,512 |
$205,262 |
20.1% |
$421,794 |
$375,447 |
12.3% |
Gross margin |
28.4% |
28.3% |
N/A |
28.6% |
28.2% |
N/A |
Gross profit and gross margin were affected by preliminary
acquisition accounting adjustments related to the acquisition of
Terex Mining as follows:
|
Quarter Ended June 30, 2010 |
Six Months Ended June 30, 2010 |
|
(Dollars in thousands) |
|
|
|
Gross profit reduction |
$15,232 |
$22,064 |
Gross margin reduction |
1.8% |
1.5% |
Operating earnings were as follows:
|
Quarter
Ended June 30, |
Six
Months Ended June 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
Surface mining |
$96,984 |
$81,205 |
19.4% |
$163,572 |
$146,237 |
11.9% |
Underground mining |
40,689 |
55,169 |
(26.2%) |
61,957 |
92,516 |
(33.0%) |
Total operations |
137,673 |
136,374 |
1.0% |
225,529 |
238,753 |
(5.5%) |
Corporate |
(9,181) |
(7,768) |
(18.2%) |
(31,122) |
(15,555) |
(100.1%) |
Consolidated total |
$128,492 |
$128,606 |
(0.1%) |
$194,407 |
$223,198 |
(12.9%) |
Operating earnings for the quarter and six months ended June 30,
2010 for the surface mining segment included Terex Mining earnings
of $42.4 million and $50.7 million, respectively, before
amortization of preliminary acquisition accounting adjustments.
Operating earnings for the quarter and six months ended June 30,
2010 were reduced by $24.6 million and $35.9 million, respectively,
as a result of amortization of preliminary acquisition accounting
adjustments and $1.7 million and $15.7 million, respectively, of
acquisition costs relating to the acquisition of Terex Mining.
Net earnings were as follows:
|
Quarter Ended June
30, |
Six Months Ended
June 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands, except
per share amounts) |
|
|
|
|
|
|
|
Net earnings |
$73,211 |
$82,280 |
(11.0%) |
$108,225 |
$139,181 |
(22.2%) |
Fully diluted net earnings per share |
$0.89 |
$1.08 |
(17.6%) |
$1.35 |
$1.84 |
(26.6%) |
Net earnings were reduced (increased) by amortizations of
preliminary acquisition accounting adjustments related to the
acquisition of Terex Mining in 2010 as follows:
|
Quarter Ended June 30, 2010 |
Six Months Ended June 30, 2010 |
|
(Dollars in thousands) |
|
|
|
Inventory fair value adjustment charged to
cost of products sold |
$15,794 |
$22,813 |
Amortization of intangible assets |
9,534 |
13,996 |
Depreciation of fixed assets. |
(702) |
(936) |
Operating earnings |
24,626 |
35,873 |
Income tax benefit |
(7,935) |
(11,553) |
Total |
$16,691 |
$24,320 |
Net earnings for the quarter and six months ended June 30, 2010
were reduced by increased amortization of bank fees related to the
amended credit agreement of $1.7 million and $2.8 million,
respectively.
EBITDA and Adjusted EBITDA were as follows:
|
Quarter
Ended June 30, |
Six Months Ended
June 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
EBITDA |
$155,310 |
$142,982 |
8.6% |
$243,177 |
$248,169 |
(2.0%) |
|
|
|
|
|
|
|
EBITDA as a percent of sales |
17.9% |
19.7% |
N/A |
16.5% |
18.7% |
N/A |
|
|
|
|
|
|
|
Adjusted EBITDA |
$174,925 |
$145,961 |
19.8% |
$287,692 |
$253,535 |
13.5% |
Adjusted EBITDA as a percent of sales |
20.1% |
20.1% |
N/A |
19.5% |
19.1% |
N/A |
Capital expenditures for the first six months of 2010 were $30.4
million, excluding costs incurred to acquire Terex Mining. Capital
expenditures for 2010 are expected to be between $70 million and
$80 million, excluding the costs incurred to acquire Terex
Mining.
Backlog at June 30, 2010 and December 31, 2009, as well as the
portion of backlog which was then expected to be recognized within
12 months of these dates, was as follows:
|
June 30, 2010 |
December 31, 2009 |
% Change |
|
(Dollars in thousands) |
|
Surface Mining: |
|
|
|
Total |
$1,352,773 |
$1,062,977 |
27.3% |
Next 12 months |
$899,576 |
$641,599 |
40.2% |
|
|
|
|
Underground
Mining: |
|
|
|
Total |
$1,090,014 |
$816,543 |
33.5% |
Next 12 months |
$702,982 |
$616,784 |
14.0% |
|
|
|
|
Total: |
|
|
|
Total |
$2,442,787 |
$1,879,520 |
30.0% |
Next 12 months |
$1,602,558 |
$1,258,383 |
27.4% |
A portion of the surface mining backlog at June 30, 2010 and
December 31, 2009 was related to multi-year contracts that will
generate revenue in future years. Included in surface mining
backlog and next 12 months backlog at June 30, 2010 was $337.3
million and $260.4 million, respectively, for Terex Mining.
New orders were as follows:
|
Quarter Ended June
30, |
Six Months Ended
June 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
Surface mining: |
|
|
|
|
|
|
Original equipment |
$341,477 |
$32,616 |
947.0% |
$509,690 |
$128,173 |
297.7% |
Aftermarket parts and service |
307,765 |
171,574 |
79.4% |
478,962 |
318,165 |
50.5% |
|
649,242 |
204,190 |
218.0% |
988,652 |
446,338 |
121.5% |
Underground mining: |
|
|
|
|
|
|
Original equipment |
267,972 |
23,526 |
1,039.0% |
421,186 |
121,543 |
246.5% |
Aftermarket parts and service |
178,516 |
139,898 |
27.6% |
325,530 |
244,715 |
33.0% |
|
446,488 |
163,424 |
173.2% |
746,716 |
366,258 |
103.9% |
Total: |
|
|
|
|
|
|
Original equipment |
609,449 |
56,142 |
985.5% |
930,876 |
249,716 |
272.8% |
Aftermarket parts and service |
486,281 |
311,472 |
56.1% |
804,492 |
562,880 |
42.9% |
|
$1,095,730 |
$367,614 |
198.1% |
$1,735,368 |
$812,596 |
113.6% |
The increase in surface mining original equipment new orders for
the quarter and six months ended June 30, 2010 compared to the same
periods of 2009 was primarily due to the inclusion of $162.1
million and $190.6 million, respectively, of Terex Mining new
orders and increased electric mining shovel new orders.
The increase in surface mining aftermarket parts and service new
orders for the quarter and six months ended June 30, 2010 compared
to the same periods of 2009 was primarily due to the inclusion of
$150.2 million and $212.0 million, respectively, of Terex Mining
new orders. Excluding the impact of Terex Mining, surface
mining aftermarket parts and service new orders decreased
approximately 7% and 15% for the quarter and six months ended June
30, 2010, respectively. The largest decrease for the quarter
ended June 30, 2010 compared to the same period of 2009 was in the
African market. The largest decreases for the six months ended
June 30, 2010 compared to the same period of 2009 were in the
United States and Chinese markets.
Total surface mining new orders for the quarter and six months
ended June 30, 2010 were negatively impacted by approximately $27
million and $25 million, respectively, due to the effect of the
stronger U.S. dollar on orders and beginning of period backlog
denominated in foreign currencies.
The increase in underground mining original equipment new orders
for the quarter ended June 30, 2010 compared to the same period of
2009 was primarily due to increased longwall new orders. The
increase for the six months ended June 30, 2010 compared to the
same period of 2009 was due to increased new orders in all product
lines.
The increase in underground mining aftermarket parts and service
new orders for the quarter and six months ended June 30, 2010
compared to the same periods of 2009 was in substantially all
markets.
Total underground mining new orders for the quarter and six
months ended June 30, 2010 were negatively impacted by
approximately $60 million and $76 million, respectively, due to the
effect of the stronger U.S. dollar on orders and beginning of
period backlog denominated in foreign currencies.
Conference Call
Bucyrus will hold a telephone conference call pertaining to this
news release at 9:00 a.m. Eastern Time (8:00 a.m. Central
Time) on Friday, July 23, 2010. Interested parties should call
(888) 680-0869 ((617) 213-4854 for international callers),
participant passcode 17067094. A replay of the call will be
available until August 23, 2010 at (888) 286-8010
((617) 801-6888 for international callers), passcode
23305908. The conference call will also be available as a
webcast, which can be accessed through the link provided on the
Investor Relations page of Bucyrus' website at www.bucyrus.com and
will be available until August 23, 2010.
Special Note Regarding Online Availability of Bucyrus
Releases and Filings
All Bucyrus financial news releases and SEC filings are posted
to Bucyrus' website, www.bucyrus.com. Automatic email alerts
for these postings, corporate and general releases as well as
product information also are available at www.bucyrus.com.
Forward-Looking Statements and Cautionary
Factors
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements may be identified by the use of predictive, future tense
or forward-looking terminology, such as "believes," "anticipates,"
"expects," "estimates," "intends," "may," "will" or similar
terms. You are cautioned that any such forward-looking
statements are not guarantees of future performance and involve
significant risks and uncertainties, and that actual results may
differ materially from those contained in the forward-looking
statements as a result of various factors, some of which are
unknown. The factors that could cause actual results to differ
materially from those anticipated in such forward-looking
statements and could adversely affect Bucyrus' actual results of
operations and financial condition include, without limitation:
- the ability to integrate the acquired operations of Terex
Mining and to realize expected synergies and expected levels of
sales and profit from this acquisition;
- the availability of operating cash to service indebtedness,
including the substantial indebtedness incurred to acquire Terex
Mining;
- liabilities relating to Terex Mining which are unknown;
- dependence on Terex Mining internal control systems for
compliance with Section 404 of the Sarbanes-Oxley Act of 2002;
- the ability to fulfill certain employment obligations in
connection with the acquisition of Terex Mining;
- entering into a new line of business in which certain
competitors have substantially more experience than Bucyrus does as
a result of the acquisition of Terex Mining;
- the cyclical nature of the sale of original equipment due to
fluctuations in market prices for coal, copper, oil, iron ore and
other minerals, changes in general economic conditions, changes in
interest rates, changes in customers' replacement or repair cycles,
consolidation in the mining industry and competitive
pressures;
- changes in global financial markets and global economic
conditions;
- disruption of plant operations due to equipment failures,
natural disasters or other reasons;
- dependence on the commodity price of coal and other conditions
in the coal market;
- the highly competitive nature of the mining industry;
- reliance on significant customers;
- the loss of key customers or key members of management;
- the risks and uncertainties of doing business in foreign
countries, including emerging markets, and foreign currency
risks;
- costs and risks associated with regulatory compliance and
changing regulations affecting the mining industry and/or electric
utilities;
- customers deferring, delaying or canceling capital investments
due to volatility and tightening of credit markets, unprecedented
financial market conditions and a global recession;
- the ability of our customers to obtain loan guarantees or other
financing from the Export-Import Bank of the United States or other
sources;
- the ability to attract and retain skilled labor;
- reliance on local partners in foreign countries;
- the ability to continue to offer products containing innovative
technology that meets the needs of customers;
- work stoppages at the company, its customers, its suppliers or
providers of transportation;
- the ability to protect intellectual property;
- the ability to successfully implement a new enterprise resource
planning system in the surface mining segment;
- the ability to satisfy underfunded pension and postretirement
obligations;
- production capacity;
- product liability, environmental and other potential
litigation; and
- the ability to purchase component parts or raw materials from
key suppliers at acceptable prices and/or on the required time
schedule.
The foregoing factors do not constitute an exhaustive list of
factors that could cause actual results to differ materially from
those anticipated in forward-looking statements, and should be read
in conjunction with the other cautionary statements and risk
factors included in Bucyrus' Form 10-K for the year ended December
31, 2009 as filed with the Securities and Exchange Commission on
March 1, 2010. All forward-looking statements attributable to
Bucyrus are expressly qualified in their entirety by the foregoing
cautionary statements. Bucyrus undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
CONTACT: Bucyrus International, Inc.
Shelley Hickman, Director - Global Communications
414-768-4599
Fax: 414-768-5211
shickman@bucyrus.com
www.bucyrus.com
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