Terex Corp. announced that net income for the fourth quarter of 2006 was $100.9 million, compared to net income of $34.8 million, for the fourth quarter of 2005. Net sales for Terex totaled $2,029.5 million in the fourth quarter of 2006, an increase of 29.4% from $1,568.3 million in the fourth quarter of 2005.
For the full year 2006, the company reported net income of $399.9 million compared to net income of $188.5 million, for the full year 2005. Net income for 2006 included a $23.3 million pretax charge related to the early extinguishment of the company's senior subordinated notes and its previous senior bank credit facilities, which negatively impacted earnings per share by $0.15, and a loss on the disposition of the Tatra heavy duty on and off road truck business, net of tax, of $7.7 million, which negatively impacted earnings per share by $0.07. Net sales for Terex totaled $7,647.6 million in 2006, an increase of 24.2% from $6,156.5 million in 2005. Ronald M. DeFeo, Terex chairman and CEO, said, “2006 was a year of significant progress on many fronts - financially, operationally and organizationally. Financially, we experienced record net sales and net income, and our debt less cash and cash equivalents of $86 million is at a historic low. We retired $500 million of our high cost notes, including the $200 million in notes retired this past January, and substantially strengthened our balance sheet.”
DeFeo said the company's new business system and the implementation in 2006 of lean strategies have contributed to the strong fourth quarter results. He pointed to the company's talent improvements and leadership as another reason for the strong gains, noting the leadership of Steve Filipov, president of Terex Cranes and Rick Nichols, president of Materials Processing & Mining.