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 nine months ended
September 30, 2010.
Operating Results
On February 19, 2010, Bucyrus completed its previously announced
acquisition of Terex Corporation's mining equipment business
("Terex Mining"). The financial results for the quarter and nine
months ended September 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
nine months ended September 30, 2010 are not necessarily
comparative to the results for the quarter and nine months ended
September 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
September 30, |
Nine Months Ended
September 30, |
|
2010 |
2009 |
2010 |
2009 |
|
(Dollars in thousands, except
per share amounts) |
Sales |
$937,164 |
$675,767 |
$2,413,357 |
$2,005,947 |
Cost of products sold |
678,534 |
451,924 |
1,732,933 |
1,406,657 |
Gross profit |
258,630 |
223,843 |
680,424 |
599,290 |
Selling, general and administrative
expenses |
98,780 |
71,405 |
274,028 |
195,473 |
Research and development expenses |
15,413 |
11,279 |
44,687 |
29,855 |
Amortization of intangible assets |
11,835 |
4,593 |
34,700 |
14,198 |
Operating earnings |
132,602 |
136,566 |
327,009 |
359,764 |
Interest income |
(1,277) |
(1,109) |
(3,694) |
(3,539) |
Interest expense |
21,022 |
6,802 |
50,981 |
20,328 |
Other expense |
575 |
56 |
4,916 |
5,699 |
Earnings before income taxes |
112,282 |
130,817 |
274,806 |
337,276 |
Income tax expense |
34,710 |
38,750 |
89,009 |
106,028 |
Net earnings |
$77,572 |
$92,067 |
$185,797 |
$231,248 |
|
|
|
|
|
Net Earnings Per Share Data |
|
|
|
|
Basic: |
|
|
|
|
Net earnings per share |
$0.96 |
$1.24 |
$2.34 |
$3.11 |
Weighted average shares |
80,569,773 |
74,459,337 |
79,488,123 |
74,454,844 |
Diluted: |
|
|
|
|
Net earnings per share |
$0.94 |
$1.21 |
$2.29 |
$3.05 |
Weighted average shares |
82,253,162 |
76,191,084 |
81,030,163 |
75,724,333 |
|
|
|
|
|
Other Financial Data |
|
|
|
|
EBITDA (1) |
$159,253 |
$152,129 |
$402,430 |
$400,298 |
Non-cash stock compensation expense (2) |
2,291 |
2,608 |
6,420 |
7,598 |
(Gain) loss on disposal of fixed assets
(3) |
(661) |
3,315 |
1,173 |
3,691 |
Terex Mining acquisition costs (4) |
524 |
— |
16,263 |
— |
Inventory fair value adjustment charged to
cost of products sold (5) |
15,223 |
— |
38,036 |
— |
Adjusted EBITDA (6) |
$176,630 |
$158,052 |
$464,322 |
$411,587 |
|
|
|
|
|
(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 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
September 30, |
Nine Months Ended
September 30, |
|
2010 |
2009 |
2010 |
2009 |
|
(Dollars in thousands) |
Net earnings |
$77,572 |
$92,067 |
$185,797 |
$231,248 |
Interest income |
(1,277) |
(1,109) |
(3,694) |
(3,539) |
Interest expense |
21,022 |
6,802 |
50,981 |
20,328 |
Income tax expense |
34,710 |
38,750 |
89,009 |
106,028 |
Depreciation |
12,933 |
10,241 |
38,838 |
29,434 |
Amortization |
14,293 |
5,378 |
41,499 |
16,799 |
EBITDA |
159,253 |
152,129 |
402,430 |
400,298 |
Changes in assets and liabilities |
(31,140) |
14,117 |
67,158 |
(154,827) |
Non-cash stock compensation expense |
2,291 |
2,608 |
6,420 |
7,598 |
(Gain) loss on disposal of fixed assets |
(661) |
3,315 |
1,173 |
3,691 |
Interest income |
1,277 |
1,109 |
3,694 |
3,539 |
Interest expense |
(21,022) |
(6,802) |
(50,981) |
(20,328) |
Income tax expense |
(34,710) |
(38,750) |
(89,009) |
(106,028) |
Net cash provided by operating
activities |
$75,288 |
$127,726 |
$340,885 |
$133,943 |
|
Consolidated Condensed
Balance Sheets (Unaudited) |
|
|
September 30, 2010 |
December 31, 2009 |
|
(Dollars in thousands) |
Assets |
|
|
Cash and cash equivalents |
$352,807 |
$101,084 |
Receivables - net |
834,489 |
741,815 |
Inventories |
1,214,615 |
627,289 |
Deferred income taxes |
49,584 |
45,024 |
Prepaid expenses and other |
67,592 |
40,861 |
Total current assets |
2,519,087 |
1,556,073 |
Goodwill |
762,070 |
351,333 |
Intangible assets - net |
682,508 |
220,780 |
Other assets |
107,268 |
61,505 |
Total other assets |
1,551,846 |
633,618 |
Property, plant and equipment - net |
604,421 |
514,421 |
Total assets |
$4,675,354 |
$2,704,112 |
|
|
|
Liabilities and Common Stockholders'
Investment |
|
|
Accounts payable and accrued expenses |
$614,749 |
$328,722 |
Liabilities to customers on uncompleted
contracts and warranties |
270,673 |
183,097 |
Income taxes |
70,013 |
45,811 |
Current maturities of long-term debt and
short-term obligations |
21,875 |
7,566 |
Total current liabilities |
977,310 |
565,196 |
Deferred income taxes |
92,116 |
82,260 |
Pension and other |
228,491 |
198,000 |
Total long-term liabilities |
320,607 |
280,260 |
Long-term debt, less current maturities |
1,486,646 |
499,666 |
Common stockholders' investment |
1,890,791 |
1,358,990 |
Total liabilities and common
stockholders' investment |
$4,675,354 |
$2,704,112 |
|
Segment Information
(Unaudited) |
|
|
|
Quarter Ended September
30, 2010 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total
Assets |
|
(Dollars in thousands) |
Surface mining |
$551,418 |
$78,946 |
$16,600 |
$5,482 |
$3,035,692 |
Underground mining |
385,746 |
63,809 |
8,168 |
8,536 |
1,639,662 |
Total operations |
937,164 |
142,755 |
24,768 |
14,018 |
4,675,354 |
Corporate |
— |
(10,153) |
— |
— |
— |
Consolidated total |
$937,164 |
132,602 |
24,768 |
$14,018 |
$4,675,354 |
Interest income |
|
(1,277) |
— |
|
|
Interest expense |
|
21,022 |
— |
|
|
Other expense |
|
575 |
2,458 |
|
|
Earnings before income taxes |
|
$112,282 |
$27,226 |
|
|
|
|
|
|
|
|
|
Terex Mining results included in the table above were as
follows:
|
Quarter Ended September
30, 2010 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining (1) |
$246,565 |
$13,893 |
$8,948 |
$1,649 |
$1,730,586 |
Interest income |
|
(53) |
— |
|
|
Interest expense |
|
2 |
— |
|
|
Loss before income taxes |
|
$13,944 |
$8,948 |
|
|
|
|
|
|
|
|
(1) Operating earnings include
inventory fair value adjustments charged to cost of products sold
of $15.2 million. This amount is not included in the depreciation
and amortization column. |
|
|
|
Quarter Ended September
30, 2009 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$312,893 |
$78,180 |
$6,054 |
$7,353 |
$1,058,074 |
Underground mining |
362,874 |
72,597 |
8,781 |
2,853 |
1,611,547 |
Total operations |
675,767 |
150,777 |
14,835 |
10,206 |
2,669,621 |
Corporate |
— |
(14,211) |
— |
— |
— |
Consolidated total |
$675,767 |
136,566 |
14,835 |
$10,206 |
$2,669,621 |
Interest income |
|
(1,109) |
— |
|
|
Interest expense |
|
6,802 |
— |
|
|
Other expense |
|
56 |
784 |
|
|
Earnings before income taxes |
|
$130,817 |
$15,619 |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2010 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$1,554,366 |
$242,518 |
$48,510 |
$26,383 |
$3,035,692 |
Underground mining |
858,991 |
125,766 |
25,028 |
18,022 |
1,639,662 |
Total operations |
2,413,357 |
368,284 |
73,538 |
44,405 |
4,675,354 |
Corporate |
— |
(41,275) |
— |
— |
— |
Consolidated total |
$2,413,357 |
327,009 |
73,538 |
$44,405 |
$4,675,354 |
Interest income |
|
(3,694) |
— |
|
|
Interest expense |
|
50,981 |
— |
|
|
Other expense |
|
4,916 |
6,799 |
|
|
Earnings before income taxes |
|
$274,806 |
$80,337 |
|
|
Terex Mining results included in the table above were as
follows:
|
Nine Months Ended
September 30, 2010 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining (1) |
$615,885 |
$28,755 |
$26,073 |
$2,208 |
$1,730,586 |
Interest income |
|
(183) |
— |
|
|
Interest expense |
|
19 |
— |
|
|
Earnings before income taxes |
|
$28,919 |
$26,073 |
|
|
|
|
|
|
|
|
(1) Operating earnings include
inventory fair value adjustments charged to cost of products sold
of $38.0 million. This amount is not included in the depreciation
and amortization column. |
|
|
Nine Months Ended
September 30, 2009 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$979,938 |
$224,417 |
$17,314 |
$25,626 |
$1,058,074 |
Underground mining |
1,026,009 |
165,113 |
26,319 |
8,917 |
1,611,547 |
Total operations |
2,005,947 |
389,530 |
43,633 |
34,543 |
2,669,621 |
Corporate |
— |
(29,766) |
— |
— |
— |
Consolidated total |
$2,005,947 |
359,764 |
43,633 |
$34,543 |
$2,669,621 |
Interest income |
|
(3,539) |
— |
|
|
Interest expense |
|
20,328 |
— |
|
|
Other expense |
|
5,699 |
2,600 |
|
|
Earnings before income taxes |
|
$337,276 |
$46,233 |
|
|
Sales consisted of the following:
|
Quarter Ended
September 30, |
Nine Months
Ended September 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
Surface Mining: |
|
|
|
|
|
|
Original equipment. |
$263,313 |
$119,800 |
119.8% |
$716,440 |
$417,103 |
71.8% |
Aftermarket parts and service |
288,105 |
193,093 |
49.2% |
837,926 |
562,835 |
48.9% |
|
551,418 |
312,893 |
76.2% |
1,554,366 |
979,938 |
58.6% |
Underground Mining: |
|
|
|
|
|
|
Original equipment. |
209,681 |
215,758 |
(2.8%) |
460,028 |
613,348 |
(25.0%) |
Aftermarket parts and service |
176,065 |
147,116 |
19.7% |
398,963 |
412,661 |
(3.3%) |
|
385,746 |
362,874 |
6.3% |
858,991 |
1,026,009 |
(16.3%) |
Total: |
|
|
|
|
|
|
Original equipment. |
472,994 |
335,558 |
41.0% |
1,176,468 |
1,030,451 |
14.2% |
Aftermarket parts and service |
464,170 |
340,209 |
36.4% |
1,236,889 |
975,496 |
26.8% |
|
$937,164 |
$675,767 |
38.7% |
$2,413,357 |
$2,005,947 |
20.3% |
The increase in surface mining original equipment sales for the
quarter and nine months ended September 30, 2010 compared to the
same periods of 2009 was primarily due to the inclusion of $115.1
million and $284.0 million of Terex Mining sales in 2010,
respectively. Excluding the impact of Terex Mining, original
equipment sales increased by approximately 24% and 4% for the
quarter and nine months ended September 30, 2010, respectively,
compared to the same periods of 2009. The increases were primarily
due to increased electric mining shovel sales.
The increase in surface mining aftermarket parts and service
sales for the quarter and nine months ended September 30, 2010
compared to the same periods of 2009 was primarily due to the
inclusion of $131.5 million and $331.9 million of Terex Mining
sales in 2010, respectively. Excluding the impact of Terex Mining,
aftermarket parts and service sales decreased by approximately 19%
and 10% for the quarter and nine months ended September 30, 2010,
respectively, compared to the same periods of 2009. The decrease
for the quarter ended September 30, 2010 was in most markets with
the largest decreases being in the Canadian, United States and
African markets. The decrease for the nine months ended September
30, 2010 was primarily due to lower sales in the United States,
Chilean, Canadian and African markets, partially offset by
increased sales in the Brazilian market.
The decrease in underground mining original equipment sales for
the quarter ended September 30, 2010 compared to the same period of
2009 was primarily in the room and pillar product line, partially
offset by an increase in the longwall product line. The decrease in
underground mining original equipment sales for the nine months
ended September 30, 2010 compared to the same period of 2009 was
across all product lines.
The increase in underground mining aftermarket parts and service
sales for the quarter ended September 30, 2010 compared to the same
period of 2009 was primarily in the Eastern European and Chinese
markets, partially offset by a decrease in the Australian market.
The decrease in underground mining aftermarket parts and service
sales for the nine months ended September 30, 2010 compared to the
same period of 2009 was primarily in the United States market,
offset by an increase in the Chinese market.
Gross profit and gross margin were as follows:
|
Quarter Ended
September 30, |
Nine Months Ended
September 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
Gross profit |
$258,630 |
$223,843 |
15.5% |
$680,424 |
$599,290 |
13.5% |
Gross margin |
27.6% |
33.1% |
N/A |
28.2% |
29.9% |
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 September 30, 2010 |
Nine Months Ended September 30,
2010 |
|
(Dollars in thousands) |
|
|
|
Gross profit reduction |
$14,691 |
$36,755 |
Gross margin reduction (percentage
points) |
1.6% |
1.5% |
Operating earnings were as follows:
|
Quarter Ended
September 30, |
Nine Months Ended
September 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
Surface mining |
$78,946 |
$78,180 |
1.0% |
$242,518 |
$224,417 |
8.1% |
Underground mining |
63,809 |
72,597 |
(12.1%) |
125,766 |
165,113 |
(23.8%) |
Total operations |
142,755 |
150,777 |
(5.3%) |
368,284 |
389,530 |
(5.5%) |
Corporate |
(10,153) |
(14,211) |
28.6% |
(41,275) |
(29,766) |
(38.7%) |
Consolidated total |
$132,602 |
$136,566 |
(2.9%) |
$327,009 |
$359,764 |
(9.1%) |
Operating earnings for the quarter and nine months ended
September 30, 2010 for the surface mining segment included Terex
Mining earnings of $36.0 million and $86.7 million, respectively,
before amortization of preliminary acquisition accounting
adjustments. Operating earnings for the quarter and nine months
ended September 30, 2010 were reduced by $22.0 million and $57.9
million, respectively, as a result of amortization of preliminary
acquisition accounting adjustments and $0.5 million and $16.3
million, respectively, of acquisition costs relating to the
acquisition of Terex Mining.
Net earnings were as follows:
|
Quarter Ended
September 30, |
Nine Months Ended
September 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands, except
per share amounts) |
|
|
|
|
|
|
|
Net earnings |
$77,572 |
$92,067 |
(15.7%) |
$185,797 |
$231,248 |
(19.7%) |
Fully diluted net earnings per share |
$0.94 |
$1.21 |
(22.3%) |
$2.29 |
$3.05 |
(24.9%) |
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 September 30, 2010 |
Nine Months Ended September 30,
2010 |
|
(Dollars in thousands) |
|
|
|
Inventory fair value adjustment charged to
cost of products sold |
$15,223 |
$38,036 |
Amortization of intangible assets |
7,475 |
21,471 |
Depreciation of fixed assets. |
(665) |
(1,601) |
Operating earnings |
22,033 |
57,906 |
Income tax benefit |
(7,177) |
(18,730) |
Total |
$14,856 |
$39,176 |
Net earnings for the quarter and nine months ended September 30,
2010 were reduced by increased amortization of bank fees of $1.0
million and $2.8 million, respectively, related to the amended
credit agreement.
EBITDA and Adjusted EBITDA were as follows:
|
Quarter Ended
September 30, |
Nine Months
Ended September 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
EBITDA |
$159,253 |
$152,129 |
4.7% |
$402,430 |
$400,298 |
0.5% |
|
|
|
|
|
|
|
EBITDA as a percent of sales |
17.0% |
22.5% |
N/A |
16.7% |
20.0% |
N/A |
|
|
|
|
|
|
|
Adjusted EBITDA |
$176,630 |
$158,052 |
11.8% |
$464,322 |
$411,587 |
12.8% |
|
|
|
|
|
|
|
Adjusted EBITDA as a percent of sales |
18.8% |
23.4% |
N/A |
19.2% |
20.5% |
N/A |
Capital expenditures for the nine months ended September 30,
2010 were $44.4 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 September 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:
|
September 30, 2010 |
December 31, 2009 |
% Change |
|
(Dollars in thousands) |
|
Surface Mining: |
|
|
|
Total |
$1,507,057 |
$1,062,977 |
41.8% |
Next 12 months |
$1,015,918 |
$641,599 |
58.3% |
|
|
|
|
Underground Mining: |
|
|
|
Total |
$1,023,552 |
$816,543 |
25.4% |
Next 12 months |
$855,606 |
$616,784 |
38.7% |
|
|
|
|
Total: |
|
|
|
Total |
$2,530,609 |
$1,879,520 |
34.6% |
Next 12 months |
$1,871,524 |
$1,258,383 |
48.7% |
A portion of the surface mining backlog at September 30, 2010
and December 31, 2009 was related to multi-year contracts that will
generate revenue in future years. Included in surface mining
total and next 12 months backlogs at September 30, 2010 were $540.2
million and $469.2 million, respectively, for Terex Mining.
New orders were as follows:
|
Quarter Ended
September 30, |
Nine Months
Ended September 30, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
Surface mining: |
|
|
|
|
|
|
Original equipment |
$425,227 |
$107,495 |
295.6% |
$934,917 |
$235,668 |
296.7% |
Aftermarket parts and service |
280,477 |
186,023 |
50.8% |
759,439 |
504,188 |
50.6% |
|
705,704 |
293,518 |
140.4% |
1,694,356 |
739,856 |
129.0% |
Underground mining: |
|
|
|
|
|
|
Original equipment |
155,976 |
207,931 |
(25.0%) |
577,162 |
329,474 |
75.2% |
Aftermarket parts and service |
163,308 |
126,132 |
29.5% |
488,838 |
370,847 |
31.8% |
|
319,284 |
334,063 |
(4.4%) |
1,066,000 |
700,321 |
52.2% |
Total: |
|
|
|
|
|
|
Original equipment |
581,203 |
315,426 |
84.3% |
1,512,079 |
565,142 |
167.6% |
Aftermarket parts and service |
443,785 |
312,155 |
42.2% |
1,248,277 |
875,035 |
42.7% |
|
$1,024,988 |
$627,581 |
63.3% |
$2,760,356 |
$1,440,177 |
91.7% |
The increase in surface mining original equipment new orders for
the quarter and nine months ended September 30, 2010 compared to
the same periods of 2009 was primarily due to the inclusion of
$313.8 million and $504.4 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 nine months ended September 30, 2010
compared to the same periods of 2009 was primarily due to the
inclusion of $135.6 million and $347.6 million, respectively, of
Terex Mining new orders. Excluding the impact of Terex Mining,
surface mining aftermarket parts and service new orders decreased
approximately 22% and 18% for the quarter and nine months ended
September 30, 2010, respectively. The largest decreases for
the quarter ended September 30, 2010 compared to the same period of
2009 were in the Chilean and Canadian markets. The largest
decreases for the nine months ended September 30, 2010 compared to
the same period of 2009 were in the United States, Chinese,
Chilean, and African markets, offset by an increase in the
Brazilian market.
Total surface mining new orders for the quarter and nine months
ended September 30, 2010 were positively impacted by approximately
$58 million and $33 million, respectively, due to the effect of the
weaker U.S. dollar on orders and beginning of period backlog
denominated in foreign currencies.
The decrease in underground mining original equipment new orders
for the quarter ended September 30, 2010 compared to the same
period of 2009 was primarily due to decreased longwall equipment
new orders. The increase for the nine months ended September 30,
2010 compared to the same period of 2009 was due to increased new
orders across all product lines.
The increase in underground mining aftermarket parts and service
new orders for the quarter ended September 30, 2010 was primarily
due to increased new orders in the Chinese and United States
markets. The increase in underground mining aftermarket parts and
service new orders for the nine months ended September 30, 2010
compared to the same period of 2009 was across substantially all
markets.
Total underground mining new orders for the quarter and nine
months ended September 30, 2010 were positively impacted by
approximately $104 million and $28 million, respectively, due to
the effect of the weaker 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, October 22, 2010. Interested parties should
call (888) 713-4213 ((617) 213-4865 for international callers),
participant passcode 82600554. A replay of the call will be
available until November 22, 2010 at (888) 286‑8010
((617) 801-6888 for international callers), passcode
64611184. 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 November 22, 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;
- the ability to purchase component parts or raw materials from
key suppliers at acceptable prices and/or on the required time
schedule; and
- the effect of a potential material net asset value adjustment
to the purchase price of Terex Mining on both the historical
financial statements and acquisition accounting of Terex
Mining.
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 and Bucyrus' Form 10-Q for the quarter ended June 30,
2010 as filed with the Securities and Exchange Commission on August
6, 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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