20.02.2006

Terex completes restatements

Terex has announced that it has completed the restatement of its financial statements for 2000, 2001, 2002 and 2003 and filed its audited financial statements, for the year ended December 31, 2004, along with its quarterly reports for 2004.

Terex also confirmed 2004 revenues at $5.0 billion and announced net income of $324 million, Stockholders’ equity as of December 31, 2004 was $1,135 million consistent with managements earlier forecast.

The net effect of these restatements is to marginally increase the losses in 2000, 2001 and 2002 and turns the $3 million profit in 2003 into a “200 million loss due to the reversal of a $200 million valuation allowance, this was then applied to 2004 accounts as a special positive item.
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The Company also confirmed that it has received a written order of a private investigation from the SEC concerning the United Rentals investigation and a an investigation into its historical accounts

Terex has been voluntarily cooperating with the SEC, and says that it will continue to cooperate fully to furnish the SEC staff with information needed to complete their review. .

"With the completion of our restatement, we have a solid foundation on which to move forward with our business," said Ronald M. DeFeo, Terex’s chairman and chief executive officer. "I want to thank all of our employees and partners who have tirelessly dedicated their time and efforts over the last 15 months.

The restatement has been a monumental task, both complex and demanding. I also want to thank our customers for their consistent support, which has allowed us to maintain our business and financial position during this time and continue our expansion in critical markets.

Terex is positioned to move forward, to implement the lessons learned from this experience, and to continue to improve our Company's internal controls. We will channel our efforts and resources toward Terex's transformation, and have already put in motion many improvement actions.”

DeFeo continued, "As contained in our Annual Report on Form 10-K filing, our 2004 stockholders’ equity balance was $1.1 billion. That means that at the end of the fourth quarter of 2004, our net debt to book capitalization was 40.7%, an all time low. This measurement has continued to improve throughout 2005, a good indication that the Company’s operating focus on cash flow is yielding significant results.

We remain enthusiastic about our future. We continue to perform well in a strong environment for construction and mining equipment worldwide. We are committed to building a better company over the next few years and our prospects look promising.”