TEREX CORPORATION slides

8/7/2019 TEREX CORPORATION slides

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Muhammad Awais


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Company Profile:Terex CorporationKey Data:

Ticker: TEX Country: UNITED STATES

Exchanges: NYSE Major Industry:Machinery &

Equipment

Sub Industry:ConstructionMachinery

2008 Sales9,889,600,000(Year Ending Jan

2009).

Employees: 20,000

Currency: U.S. Dollars Market Cap: 2,067,953,000

Fiscal Yr Ends: December Shares Outstanding: 108,100,000

Share Type: Common Closely Held Shares: 6,473,847


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Terex Operates in 4 Segments


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LANDMARKS DURING ITS GROWTHy 1995: Terex acquires PPM Cranes.

y 1996: Terex divests Clark Material Handling.

y 2003 : Terex acquires controlling interest in TATRA

y 2004 : Terex acquires Noble CE, now known as TerexMexico


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B oard Of Directorsy No. of Members in Board of Directors is Eleven

y They belong to different countries all around the world.

y They are divided into different Committees like,compensation committee, Audit Committee,Governance and Nominating Committee, CorporateResponsibility and Strategy


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FINAN CIAL REPORTSy

BALANCE SHEETAssets $Mil

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008latestQtr

Total

CurrentAssets 1,315.3 1,242.4 1 ,383.0 2,221.1 2,194.0 2,647.1 2,903.5 3,432.8 ,776.9 4,040.9 4,124.2

TotalAssets

2,177.5 1,983.7 2,387.0 3,625.7 3,723.8 4,179.1 4,200.3 4,785.9 ,316.3 5,445.4 5,907.7


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Cash F lows

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Cash fromOperations

5.0 200.6 (5.5) 70.3 384.1 164.6 273.4 484.4 361.4 183.7 208.1

Cash fromInvesting

(553.0) 110.9 (136.3) (440.6) (28.7) (61.8) (56.7) (51.9) (251.9) (579.3) (85.6)

Cash flowfromfinancing

657.2 (261.2) 211.5 460.0 (269.6) (170.1) (49.0) (344.8) 431.1 (349.2) 420.5

Free CashFlow

(16.4) 176.4 (19.0) 41.1 357.0 129.1 224.8 405.5 249.9 62.9 130.8


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INCOME STATEMENT

From 1999-2008 $ Million

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Revenue 1856.6 2068.7 1812.5 2797.4 3897.1 5019.8 6380.4 7647.6 9137.7 9889.6 5925.3

GrossProfit

316.7 363.6 276.6 356.7 518.5 703.1 978.0 1443.1 1882.0 1927.7 698.3

Operating Income 178.3 198.3 104.2 68.6 73.5 214.6 375.0 709.5 961.4 402.6 (644.5)

NetIncome

172.9 95.1 12.8 (132.5) (25.5) 324.1 188.5 399.9 613.9 71.9 (677.1)


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CORPORAT

EF

RAU

Dy Accounting fraud for making material misstatements in its

own financial reports to investors

y Aided and Abetted a fraudulent accounting scheme atUnited Rentals, Inc.

y

Involving two sale-leaseback transactions, carried outbetween 2000 and 2002 by United Rentals, Inc. ("URl")and two of its senior officers


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y Terex fraudulently misstated its own "financial statementsin connection with those transactions.

y Recorded improper entries that misstated its earnings andconcealed intercompany imbalances in its accounts.

y Terex materially misstated its financial condition andoperating results in filings with the Commission.

y Terex subsequently filed a restatement correcting itsfinancial statements from January 1, 2000 , through June30 , 2004 .


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y

How Fraud was detectedy The Reason behind detecting the Fraud was the Fraud of

URI.

y SEC while inquiring the URI. Inc. Fraud detected a linkbetween URI and Terex.

y While going through Financial Statements of TerexCorporation SEC found out some misleading information.


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Main Culprits & Setllementy Joseph F. Apuzzoy Chi ef F in an cial Off icery Joseph F. Apuzzo was the main culprit in these activities

y John N. Milne Former Vice-Chairman, President and CFO of United Rentals, Inc.

y Michael J. Nolan , Former CFO of United Rentals

y Apuzzo was Sacked by the Company immediately after the Fraud was detected

y $8Million Fine(paid)


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Future P erspectivey Company has a healthy financial positiony Future perspective are very goody Share price is around $ 23.6


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SOCIAL RESPONSIBILITY

y E stabl ishm en t of College by Terex Corporat ion

y A ward in g Sch olars hi ps to stude n ts

y Chin a E art hq uake Rel ief

y Iowa Flood Rel ief y Terex members raised $ 2442 .00


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RECOMMENDATIONS

y Reduce the number of Members in Board of Directors.

y Show true picture of its Financial Resources to itsCostumers

y

Make Strict Rules and Laws for wrong doings.

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TEREX CORPORATION slides