Terex to Restate First-Half of 2004 (2005-9-13)

Terex Discloses More Accounting Changes, to Restate Financials for First-Half of 2004

Construction equipment maker Terex Corp., which has been working to correct accounting errors in its financial statements dating back to 2000, on Friday disclosed a fresh set of bookkeeping issues that will require it to restate its financials for the first-half of 2004.

Terex said it needs to reverse tax-related charges to its earnings in the first and second quarters of last year, increasing net income in those periods by about $2.4 million and $7.4 million, respectively.

Terex, which hasn\’t filed a financial report with regulators since August 2004, said it has been working to turn in its financial statements for 2004 and earlier by next Thursday, when a related default waiver from its banks expires.

The company expects to reduce its previously reported stockholders\’ equity of $877 million as of Dec. 31, 2003, to $690 million. Stockholders\’ equity at Dec. 31, 2004, is expected to be $1.1 billion.

Based on its latest findings, Terex said it plans to put new accounting practices and controls and place to address its bookkeeping issues.

Shares of the company rose 58 cents to $48.78 in morning trading on the New York Stock Exchange. The company\’s shares have traded between $32.70 and $52.25 over the past 52 weeks.

(source:aem)