Terex Announces Record Second Quarter Results

August 2, 2006 •Terex Corp., Westport, Conn., recently announced net income for the second quarter of 2006 of $119.2 million, or $1.16 per share, compared to net income of $71.2 million, or $0.70 per share, for the second quarter of 2005.

 

Net income for the second quarter of 2006 included a $3.6 million net charge related to the early extinguishment of $100 million of the company's 10-3/8% senior subordinated notes, which negatively impacted earnings per share by $0.04. All per share amounts reflect the July 2006 two-for-one split of the company's common stock. Net sales reached $2,080.6 million in the second quarter of 2006, an increase of 18.3% from $1,759.1 million in the second quarter of 2005. Net debt decreased in the first half of 2006 by $40 million from December 31, 2005 levels, reflecting strong cash from operations performance, partially offset by the acquisition of a 50% controlling interest in a Chinese crane manufacturer in the quarter, the call premium on the early extinguishment of debt, and period capital expenditures.

"We are very pleased with this record setting quarter for Terex, but we remain hard at work looking for continued improvement in all of our businesses," said Ronald M. DeFeo, Terex's chairman and chief executive officer. "While this quarter marks a record level of revenue and net income, it best highlights the potential of our team members and products. Lean manufacturing principles continue to be implemented across the organization, purchasing and pricing disciplines continue to improve, and customer service and support continues to enhance our customers' experience with Terex."