Exhibit 99

 

		NEWS RELEASE For further information, contact Shelley Hickman, Director – Global Communications
		Tel: 414-768-4599		Fax: 414-768-5211
		shelley.hickman@bucyrus.com		www.bucyrus.com

BUCYRUS INTERNATIONAL, INC. ANNOUNCES SUMMARY FINANCIAL RESULTS FOR

THE QUARTER AND YEAR ENDED DECEMBER 31, 2010

 

 

South Milwaukee, Wisconsin, February 17, 2011 - 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

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		Quarter Ended December 31,								Year Ended December 31,
		2010				2009				2010				2009
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.

 

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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

 

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		December 31, 2010				December 31, 2009
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.

 

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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

 

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		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.

 

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		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

 

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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	%

 

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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

 

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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.

 

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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.

 

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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.

 

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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:

 

•

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.

 

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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.

 

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