EX-99.1 2 dex991.htm PRESS RELEASE Press Release

 

Exhibit 99.1

 

LOGO  

 

NEWS RELEASE

For further information, contact

Shelley Hickman, Director –

Global Communications

 

Tel: 414-768-4599

shickman@bucyrus.com

 

Fax: 414-768-5211

www.bucyrus.com

BUCYRUS INTERNATIONAL, INC. ANNOUNCES SUMMARY FINANCIAL RESULTS FOR

THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2010

 

 

South Milwaukee, Wisconsin, October 21, 2010 - 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   
                                


 

     Quarter Ended September 30,      Nine Months Ended September 30,  
     2010     2009      2010      2009  

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.

 

2


 

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   
                 

 

3


 

     September 30,
2010
     December 31,
2009
 

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         
                         

 

4


 

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         
                         

 

5


 

     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.

 

6


 

     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

 

7


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 %) 
                                    

 

8


 

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.

 

9


 

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.

 

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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.

 

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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.

 

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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;

 

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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.

 

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