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 year ended December
31, 2010. On January 20, 2011, the stockholders of Bucyrus approved
the merger agreement providing for the acquisition of Bucyrus by
Caterpillar Inc. Bucyrus anticipates that the merger will be
completed in mid-2011.
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
year ended December 31, 2010 include the net assets and results of
operations of Terex Mining since the February 19, 2010 date of
acquisition as well as the acquisition accounting adjustments and
acquisition costs related to the Terex Mining acquisition. As a
result, the financial results for the quarter and year ended
December 31, 2010 are not necessarily comparative to the results
for the quarter and year ended December 31, 2009 and may not be
indicative of future results. Terex Mining has been integrated
into the surface mining segment. For the fourth quarter and the
year ended December 31, 2010, Bucyrus has disclosed certain
financial information for Terex Mining.
Consolidated Condensed
Statements of Earnings (Unaudited) |
|
|
|
|
Quarter Ended
December 31, |
Year Ended December
31, |
|
2010 |
2009 |
2010 |
2009 |
|
(Dollars in thousands, except
per share amounts) |
Sales |
$1,237,206 |
$645,822 |
$3,650,563 |
$2,651,769 |
Cost of products sold |
868,276 |
439,513 |
2,601,209 |
1,846,170 |
Gross profit |
368,930 |
206,309 |
1,049,354 |
805,599 |
Selling, general and administrative
expenses |
131,468 |
74,066 |
405,496 |
269,539 |
Research and development expenses |
17,811 |
12,053 |
62,498 |
41,908 |
Amortization of intangible assets |
11,896 |
4,701 |
46,596 |
18,899 |
Operating earnings |
207,755 |
115,489 |
534,764 |
475,253 |
Interest income |
(1,416) |
(1,578) |
(5,110) |
(5,117) |
Interest expense |
20,639 |
6,689 |
71,620 |
27,017 |
Other expense |
2,456 |
386 |
7,372 |
6,085 |
Earnings before income taxes |
186,076 |
109,992 |
460,882 |
447,268 |
Income tax expense |
56,123 |
28,537 |
145,132 |
134,565 |
Net earnings |
$129,953 |
$81,455 |
$315,750 |
$312,703 |
|
|
|
|
|
Net earnings per share data |
|
|
|
|
Basic: |
|
|
|
|
Net earnings per
share |
$1.61 |
$1.09 |
$3.96 |
$4.20 |
Weighted average
shares |
80,583,630 |
74,463,276 |
79,764,251 |
74,456,969 |
Diluted: |
|
|
|
|
Net earnings per
share |
$1.58 |
$1.07 |
$3.88 |
$4.12 |
Weighted average
shares |
82,216,200 |
76,345,348 |
81,329,109 |
75,880,863 |
|
|
|
|
|
Other Financial Data |
|
|
|
|
EBITDA (1) |
$234,865 |
$132,697 |
$637,295 |
$532,995 |
Non-cash stock compensation expense (2) |
2,336 |
4,291 |
8,756 |
11,889 |
(Gain) loss on disposal of fixed assets
(3) |
(148) |
13 |
1,025 |
3,704 |
Terex Mining acquisition costs (4) |
3,475 |
— |
19,738 |
— |
Costs associated with the pending merger with
Caterpillar Inc. (5). |
14,885 |
— |
14,885 |
— |
Inventory fair value adjustment charged to
cost of products sold (6) |
912 |
— |
38,948 |
— |
Adjusted EBITDA (7) |
$256,325 |
$137,001 |
$720,647 |
$548,588 |
|
|
|
|
|
(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) Reflects costs related to the
pending merger with Caterpillar Inc. |
(6) 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. |
(7) 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
December 31, |
Year Ended December
31, |
|
2010 |
2009 |
2010 |
2009 |
|
(Dollars in thousands) |
Net earnings |
$129,953 |
$81,455 |
$315,750 |
$312,703 |
Interest income |
(1,416) |
(1,578) |
(5,110) |
(5,117) |
Interest expense |
20,639 |
6,689 |
71,620 |
27,017 |
Income tax expense |
56,123 |
28,537 |
145,132 |
134,565 |
Depreciation |
15,213 |
12,110 |
54,051 |
41,544 |
Amortization |
14,353 |
5,484 |
55,852 |
22,283 |
EBITDA |
234,865 |
132,697 |
637,295 |
532,995 |
|
|
|
|
|
Changes in assets and liabilities |
(22,709) |
(98,747) |
44,449 |
(253,574) |
Non-cash stock compensation expense |
2,336 |
4,291 |
8,756 |
11,889 |
(Gain) loss on disposal of fixed assets |
(148) |
13 |
1,025 |
3,704 |
Interest income |
1,416 |
1,578 |
5,110 |
5,117 |
Interest expense |
(20,639) |
(6,689) |
(71,620) |
(27,017) |
Income tax expense |
(56,123) |
(28,537) |
(145,132) |
(134,565) |
Net cash provided by operating
activities |
$138,998 |
$4,606 |
$479,883 |
$138,549 |
|
Consolidated Condensed
Balance Sheets (Unaudited) |
|
|
|
|
December 31, 2010 |
December 31, 2009 |
|
(Dollars in thousands) |
Assets |
|
|
Cash and cash equivalents |
$473,741 |
$101,084 |
Receivables - net |
918,828 |
741,815 |
Inventories |
1,129,484 |
627,289 |
Deferred income taxes |
80,358 |
45,024 |
Prepaid expenses and other |
61,856 |
40,861 |
Total current assets |
2,664,267 |
1,556,073 |
|
|
|
Goodwill |
927,882 |
351,333 |
Intangible assets - net |
679,131 |
220,780 |
Other assets |
122,397 |
61,505 |
Total other assets |
1,729,410 |
633,618 |
|
|
|
Property, plant and equipment - net |
626,151 |
514,421 |
Total assets |
$5,019,828 |
$2,704,112 |
|
|
|
Liabilities and Common
Stockholders' Investment |
|
|
Accounts payable and accrued expenses |
$746,460 |
$328,722 |
Liabilities to customers on uncompleted
contracts and warranties |
322,051 |
183,097 |
Income taxes |
46,386 |
45,811 |
Current maturities of long-term debt and
short-term obligations |
28,113 |
7,566 |
Total current liabilities |
1,143,010 |
565,196 |
|
|
|
Deferred income taxes |
92,350 |
82,260 |
Pension, postretirement benefits and
other |
258,010 |
198,000 |
Total long-term
liabilities |
350,360 |
280,260 |
|
|
|
Long-term debt, less current maturities |
1,487,344 |
499,666 |
|
|
|
Common stockholders' investment |
2,039,114 |
1,358,990 |
Total liabilities and common
stockholders' investment |
$5,019,828 |
$2,704,112 |
|
Segment Information
(Unaudited) |
|
|
|
Quarter Ended December
31, 2010 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining (1) |
$831,095 |
$160,947 |
$19,357 |
$2,285 |
$3,408,266 |
Underground mining |
406,111 |
80,296 |
7,753 |
9,163 |
1,596,125 |
Total operations |
1,237,206 |
241,243 |
27,110 |
11,448 |
5,004,391 |
Corporate (1) |
— |
(33,488) |
— |
15,473 |
15,437 |
Consolidated total |
$1,237,206 |
207,755 |
27,110 |
$26,921 |
$5,019,828 |
Interest income |
|
(1,416) |
— |
|
|
Interest expense |
|
20,639 |
— |
|
|
Other expense |
|
2,456 |
2,456 |
|
|
Earnings before income taxes |
|
$186,076 |
$29,566 |
|
|
|
|
|
|
|
|
(1) Certain capital expenditures
previously reported as surface mining were reclassified to
corporate in the fourth quarter. |
Terex Mining results included in the table above were as
follows:
|
Quarter Ended December
31, 2010 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
|
|
|
|
|
|
Surface mining (1) |
$416,194 |
$69,392 |
$10,803 |
$1,070 |
$1,964,693 |
Interest income |
|
(144) |
— |
|
|
Interest expense |
|
20 |
— |
|
|
Earnings before income taxes |
|
$69,516 |
$10,803 |
|
|
|
|
|
|
|
|
(1) Operating earnings include
inventory fair value adjustments charged to cost of products sold
of $0.9 million. This amount is not included in the depreciation
and amortization column. |
|
Quarter Ended December
31, 2009 |
|
Sales |
Operating
Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$305,058 |
$68,337 |
$7,222 |
$11,955 |
$1,106,154 |
Underground mining |
340,764 |
56,503 |
9,588 |
8,084 |
1,597,958 |
Total operations |
645,822 |
124,840 |
16,810 |
20,039 |
2,704,112 |
Corporate |
— |
(9,351) |
— |
— |
— |
Consolidated total |
$645,822 |
115,489 |
16,810 |
$20,039 |
$2,704,112 |
Interest income |
|
(1,578) |
— |
|
|
Interest expense |
|
6,689 |
— |
|
|
Other expense |
|
386 |
784 |
|
|
Earnings before income taxes |
|
$109,992 |
$17,594 |
|
|
|
|
|
Year Ended December 31,
2010 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining (1) |
$2,385,461 |
$403,465 |
$67,866 |
$28,668 |
$3,408,266 |
Underground mining |
1,265,102 |
206,062 |
32,781 |
27,185 |
1,596,125 |
Total operations |
3,650,563 |
609,527 |
100,647 |
55,853 |
5,004,391 |
Corporate (1) |
— |
(74,763) |
— |
15,473 |
15,437 |
Consolidated total |
$3,650,563 |
534,764 |
100,647 |
$71,326 |
$5,019,828 |
Interest income |
|
(5,110) |
— |
|
|
Interest expense |
|
71,620 |
— |
|
|
Other expense |
|
7,372 |
9,256 |
|
|
Earnings before income taxes |
|
$460,882 |
$109,903 |
|
|
|
|
|
|
|
|
(1) Certain capital expenditures
previously reported as surface mining were reclassified to
corporate in the fourth quarter. |
Terex Mining results included in the table above were as
follows:
|
Year Ended December 31,
2010 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands)
|
Surface mining (1) |
$1,032,079 |
$98,147 |
$36,876 |
$3,878 |
$1,964,693 |
Interest income |
|
(327) |
— |
|
|
Interest expense |
|
39 |
— |
|
|
Earnings before income taxes |
|
$98,435 |
$36,876 |
|
|
|
|
|
|
|
|
(1) Operating earnings include
inventory fair value adjustments charged to cost of products sold
of $38.9 million. This amount is not included in the depreciation
and amortization column. |
|
Year Ended December 31,
2009 |
|
Sales |
Operating Earnings |
Depreciation and Amortization |
Capital Expenditures |
Total Assets |
|
(Dollars in thousands) |
Surface mining |
$1,284,996 |
$292,754 |
$24,536 |
$37,581 |
$1,106,154 |
Underground mining |
1,366,773 |
221,616 |
35,907 |
17,001 |
1,597,958 |
Total operations |
2,651,769 |
514,370 |
60,443 |
54,582 |
2,704,112 |
Corporate |
— |
(39,117) |
— |
— |
— |
Consolidated total |
$2,651,769 |
475,253 |
60,443 |
$54,582 |
$2,704,112 |
Interest income |
|
(5,117) |
— |
|
|
Interest expense |
|
27,017 |
— |
|
|
Other expense |
|
6,085 |
3,384 |
|
|
Earnings before income taxes |
|
$447,268 |
$63,827 |
|
|
Sales consisted of the following:
|
Quarter Ended December 31, |
Year Ended December
31, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
Surface mining: |
|
|
|
|
|
|
Original equipment |
$486,126 |
$117,360 |
314.2% |
$1,202,566 |
$534,463 |
125.0% |
Aftermarket parts and
service |
344,968 |
187,698 |
83.8% |
1,182,894 |
750,533 |
57.6% |
|
831,094 |
305,058 |
172.4% |
2,385,460 |
1,284,996 |
85.6% |
Underground mining: |
|
|
|
|
|
|
Original equipment |
220,451 |
207,671 |
6.2% |
680,479 |
821,019 |
(17.1%) |
Aftermarket parts and
service |
185,661 |
133,093 |
39.5% |
584,624 |
545,754 |
7.1% |
|
406,112 |
340,764 |
19.2% |
1,265,103 |
1,366,773 |
(7.4%) |
Total: |
|
|
|
|
|
|
Original equipment |
706,577 |
325,031 |
117.4% |
1,883,045 |
1,355,482 |
38.9% |
Aftermarket parts and
service |
530,629 |
320,791 |
65.4% |
1,767,518 |
1,296,287 |
36.4% |
|
$1,237,206 |
$645,822 |
91.6% |
$3,650,563 |
$2,651,769 |
37.7% |
The increase in surface mining original equipment sales for the
quarter and year ended December 31, 2010 compared to the same
periods of 2009 was primarily due to the inclusion of $256.6
million and $540.6 million of Terex Mining sales in 2010,
respectively. Excluding the impact of Terex Mining, surface mining
original equipment sales increased by approximately 96% and 24% for
the quarter and year ended December 31, 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 year ended December 31, 2010 compared to
the same periods of 2009 was primarily due to the inclusion of
$159.6 million and $491.5 million of Terex Mining sales in 2010,
respectively. Excluding the impact of Terex Mining, aftermarket
parts and service sales decreased by approximately 1% and 8% for
the quarter and year ended December 31, 2010, respectively,
compared to the same periods of 2009. The decrease for the quarter
ended December 31, 2010 was primarily in the United States and
African markets, partially offset by small increases in various
other markets. The decrease for the year ended December 31,
2010 was primarily due to lower sales in the United States, African
and Chinese markets, partially offset by increased sales in the
Brazilian market.
The increase in underground mining original equipment sales for
the quarter ended December 31, 2010 compared to the same period of
2009 was primarily in the room and pillar product line, partially
offset by a decrease in the longwall product line. The decrease in
underground mining original equipment sales for the year ended
December 31, 2010 compared to the same period of 2009 was in the
longwall and room and pillar product lines.
The increase in underground mining aftermarket parts and service
sales for the quarter ended December 31, 2010 compared to the same
period of 2009 was across all markets except for the China market.
The increase in underground mining aftermarket parts and service
sales for the year ended December 31, 2010 compared to the same
period of 2009 was across all markets except for the United States
market.
Gross profit and gross margin were as follows:
|
Quarter
Ended December 31, |
Year
Ended December 31, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
Gross profit |
$368,930 |
$206,309 |
78.8% |
$1,049,354 |
$805,599 |
30.3% |
Gross margin |
29.8% |
31.9% |
N/A |
28.7% |
30.4% |
N/A |
Gross profit and gross margin were affected by acquisition
accounting adjustments related to the acquisition of Terex Mining
in 2010 as follows:
|
Quarter Ended December 31, 2010 |
Year Ended December 31, 2010 |
|
(Dollars in thousands) |
|
|
|
Gross profit reduction |
$1,490 |
$38,245 |
Gross margin reduction (percentage
points) |
0.1 |
1.0 |
Operating earnings were as follows:
|
Quarter
Ended December 31, |
Year Ended December
31, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
Surface mining |
$160,947 |
$68,337 |
135.5% |
$403,465 |
$292,754 |
37.8% |
Underground mining |
80,296 |
56,503 |
42.1% |
206,062 |
221,616 |
(7.0%) |
Total operations |
241,243 |
124,840 |
93.2% |
609,527 |
514,370 |
18.5% |
Corporate |
(33,488) |
(9,351) |
(258.1%) |
(74,763) |
(39,117) |
(91.1%) |
Consolidated total |
$207,755 |
$115,489 |
79.9% |
$534,764 |
$475,253 |
12.5% |
Operating earnings for the quarter and year ended December 31,
2010 for the surface mining segment included Terex Mining earnings
of $79.4 million and $166.1 million, respectively, before
amortization of acquisition accounting adjustments. Operating
earnings for the quarter and year ended December 31, 2010 were
reduced by $10.1 million and $68.0 million, respectively, as a
result of amortization of acquisition accounting adjustments and
$3.5 million and $19.7 million, respectively, of acquisition costs
relating to the acquisition of Terex Mining.
Net earnings were as follows:
|
Quarter Ended
December 31, |
Year Ended
December 31, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands, except
per share amounts) |
|
|
|
|
|
|
|
Net earnings |
$129,953 |
$81,455 |
59.5% |
$315,750 |
$312,703 |
1.0% |
Fully diluted net earnings per share |
$1.58 |
$1.07 |
47.7% |
$3.88 |
$4.12 |
(5.8%) |
Net earnings were reduced (increased) by amortizations of
acquisition accounting adjustments related to the acquisition of
Terex Mining in 2010 as follows:
|
Quarter Ended December 31, 2010 |
Year Ended December 31, 2010 |
|
(Dollars in thousands) |
Inventory fair value adjustment charged to
cost of products sold |
$912 |
$38,948 |
Amortization of intangible assets |
8,451 |
29,922 |
Depreciation of fixed assets. |
721 |
(880) |
Operating earnings |
10,084 |
67,990 |
Income tax benefit |
(4,466) |
(23,196) |
Total |
$5,618 |
$44,794 |
Net earnings for the quarter and year ended December 31, 2010
were reduced by increased amortization of bank fees of $1.1 million
and $3.9 million, respectively, related to the amended credit
agreement entered into on February 19, 2010.
EBITDA and Adjusted EBITDA were as follows:
|
Quarter
Ended December 31, |
Year Ended December
31, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
|
|
|
|
|
|
|
EBITDA |
$234,865 |
$132,697 |
77.0% |
$637,295 |
$532,995 |
19.6% |
EBITDA as a percent of sales |
19.0% |
20.5% |
N/A |
17.5% |
20.1% |
N/A |
|
|
|
|
|
|
|
Adjusted EBITDA |
$256,325 |
$137,001 |
87.1% |
$720,647 |
$548,588 |
31.4% |
Adjusted EBITDA as a percent of sales |
20.7% |
21.2% |
N/A |
19.7% |
20.7% |
N/A |
Capital expenditures for the year ended December 31, 2010 were
$71.3 million, excluding costs incurred to acquire Terex Mining.
Capital expenditures for 2011 are expected to be approximately $100
million.
Backlog at December 31, 2010 and December 31, 2009, as well as
the portion of backlog which is expected to be recognized within 12
months of these dates, was as follows:
|
December 31, 2010 |
December 31, 2009 |
% Change |
|
(Dollars in thousands) |
Surface mining: |
|
|
|
Total |
$1,708,877 |
$1,062,977 |
60.8% |
Next 12 months |
$1,134,105 |
$641,599 |
76.8% |
|
|
|
|
Underground mining: |
|
|
|
Total |
$997,388 |
$816,543 |
22.1% |
Next 12 months |
$752,424 |
$616,784 |
22.0% |
|
|
|
|
Total: |
|
|
|
Total |
$2,706,265 |
$1,879,520 |
44.0% |
Next 12 months |
$1,886,529 |
$1,258,383 |
49.9% |
A portion of the backlog at December 31, 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 December 31, 2010 were $698.3 million and $500.2
million, respectively, for Terex Mining.
New orders were as follows:
|
Quarter
Ended December 31, |
Year Ended December
31, |
|
2010 |
2009 |
% Change |
2010 |
2009 |
% Change |
|
(Dollars in thousands) |
Surface mining: |
|
|
|
|
|
|
Original equipment |
$584,185 |
$94,734 |
516.7% |
$1,519,102 |
$330,402 |
359.8% |
Aftermarket parts and service |
448,730 |
146,141 |
207.1% |
1,208,169 |
650,329 |
85.8% |
|
1,032,915 |
240,875 |
328.8% |
2,727,271 |
980,731 |
178.1% |
Underground mining: |
|
|
|
|
|
|
Original equipment |
155,990 |
195,676 |
(20.3%) |
733,152 |
525,150 |
39.6% |
Aftermarket parts and service |
223,958 |
152,107 |
47.2% |
712,796 |
522,954 |
36.3% |
|
379,948 |
347,783 |
9.2% |
1,445,948 |
1,048,104 |
38.0% |
Total: |
|
|
|
|
|
|
Original equipment |
740,175 |
290,410 |
154.9% |
2,252,254 |
855,552 |
163.3% |
Aftermarket parts and service |
672,688 |
298,248 |
125.5% |
1,920,965 |
1,173,283 |
63.7% |
|
$1,412,863 |
$588,658 |
140.0% |
$4,173,219 |
$2,028,835 |
105.7% |
The increase in surface mining original equipment new orders for
the quarter and year ended December 31, 2010 compared to the same
periods of 2009 was primarily due to the inclusion of $365.3
million and $869.7 million, respectively, of Terex Mining new
orders, as well as increased electric mining shovel and blasthole
drill new orders. Excluding the impact of Terex Mining,
surface mining new original equipment orders increased
approximately 131% and 97% for the quarter and year ended December
31, 2010, respectively, compared to the same periods of 2009.
The increase in surface mining aftermarket parts and service new
orders for the quarter and year ended December 31, 2010 compared to
the same periods of 2009 was primarily due to the inclusion of
$207.2 million and $556.6 million, respectively, of Terex Mining
new orders. Excluding the impact of Terex Mining, surface
mining aftermarket parts and service new orders increased
approximately 65% for the quarter ended December 31, 2010 and were
relatively flat for year ended December 31, 2010. The largest
increases for the quarter ended December 31, 2010 compared to the
same period of 2009 were in the Australian, Chilean and Canadian
markets. Increased surface mining aftermarket parts and
service new orders in the Indian, Australian and Brazilian markets
for the year ended December 31, 2010 compared to the same period of
2009 were offset by decreases in the United States, Chinese and
African markets.
Total surface mining new orders for the quarter and year ended
December 31, 2010 were favorably impacted by approximately $1
million and $34 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 December 31, 2010 compared to the same period
of 2009 was primarily due to decreased longwall equipment new
orders offset by increased room and pillar new orders. The increase
for the year ended December 31, 2010 compared to the same period of
2009 was across all product lines.
The increase in underground mining aftermarket parts and service
new orders for the quarter ended December 31, 2010 was primarily
due to increased new orders in most markets, with the largest
increase in the Europe, Russia and India market, partially offset
by a decrease in the Chinese market. The increase in underground
mining aftermarket parts and service new orders for the year ended
December 31, 2010 compared to the same period of 2009 was across
substantially all markets.
Total underground mining new orders for the quarter and year
ended December 31, 2010 were favorably impacted by approximately $6
million and $34 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, February 18, 2011. Interested parties should
call (888) 680-0879 ((617) 213-4856 for international callers),
participant passcode 17695704. A replay of the teleconference
will be available until March 17, 2011 and can be accessed in the
United States by dialing (888) 286-8010 or at (617) 801-6888 from
outside of the United States. The "Passcode" for the replay is
35474722. 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 March 17, 2011.
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:
- events, regulatory factors or other circumstances related to
the merger agreement with Caterpillar Inc.;
- 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 our plant operations due to equipment failures,
natural disasters or other reasons;
- our dependence on the commodity price of coal and other
conditions in the coal market;
- the highly competitive nature of the mining industry;
- our 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;
- the ability to continue to integrate the acquired operations of
Terex Mining and to realize expected synergies and expected levels
of sales and profit from this acquisition;
- costs and risks associated with regulatory compliance and
changing regulations affecting the mining industry and/or electric
utilities;
- our ability to attract and retain skilled labor;
- our reliance on local partners in foreign countries;
- our ability to continue to offer products containing innovative
technology that meets the needs of our customers;
- work stoppages at our company, our customers, our suppliers or
providers of transportation;
- our ability to protect intellectual property;
- 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 to us;
- dependence on Terex Mining internal control systems for
compliance with Section 404 of the Sarbanes-Oxley Act of 2002;
- our entering into a new line of business in which certain
competitors have substantially more experience than we do as a
result of the acquisition of Terex Mining;
- our ability to successfully implement a new enterprise resource
planning system ("ERP") in the surface mining segment;
- our ability to satisfy underfunded pension and postretirement
obligations;
- our production capacity;
- product liability, environmental and other potential
litigation;
- our ability to purchase component parts or raw materials from
key suppliers at acceptable prices and/or on the required time
schedule;
- our customers deferring, delaying or canceling capital
investments due to volatility and tightening of credit markets,
unprecedented financial market conditions and a global recession;
and
- our customers' inability to obtain loan guarantees or other
credit enhancements or financing.
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' 2009 Form 10-K 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: Shelley Hickman, Director -
Global Communications
Tel: 414-768-4599 Fax: 414-768-5211
shelley.hickman@bucyrus.com www.bucyrus.com
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