updated 2/17/2011 8:46:53 PM ET 2011-02-18T01:46:53

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. 

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

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved

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