SOUTH MILWAUKEE, Wis., Feb. 17, 2011 (GLOBE NEWSWIRE) -- 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.
Terex Mining results included in the table above were as follows:
Terex Mining results included in the table above were as follows:
Sales consisted of the following:
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:
Gross profit and gross margin were affected by acquisition accounting adjustments related to the acquisition of Terex Mining in 2010 as follows:
Operating earnings were as follows:
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:
Net earnings were reduced (increased) by amortizations of acquisition accounting adjustments related to the acquisition of Terex Mining in 2010 as follows:
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:
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:
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:
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.
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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.
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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 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, . 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