Info: Georg W.Pollak
(GB/D/SK) TEREX ON TATRA Mr. DeFeo added, “Our strong business performance in the fourth quarter of 2005, particularly in the Terex Aerial Work Platforms segment, which outperformed our operating profit expectations by approximately $15 million in the quarter, unfortunately was more than offset by certain charges we incurred during the quarter. The Terex Construction segment incurred charges in the quarter related to physical inventory results at four locations of approximately $4 million, additional inventory valuation charges of approximately $6 million, and an increased bad debt provision largely related to customers of the compact construction business of approximately $4 million. The Terex Cranes segment had a field retrofit program, which caused the Company to accrue approximately $4 million in the quarter. The Terex Roadbuilding, Utility Products and Other segment was impacted by expenses at the American Truck Company (”ATC”) and Tatra and the write-down of certain assets at Tatra related to the inability of ATC to complete the tender for a U.S. Marine Corps truck procurement, and the fact that the Israeli Ministry of Defense did not exercise its option to purchase additional trucks from ATC. Lastly, the Company incurred charges of approximately $9 million resulting from increased accruals for equity based compensation and other plans, as well as audit and other professional fees largely related to the Company’s ongoing effort to improve its financial reporting process.”
