SOUTH MILWAUKEE, Wis., Feb. 19, 2009 (GLOBE NEWSWIRE) -- 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, 2008.
Operating Results
The 2007 results of operations for Bucyrus' underground mining segment are for the period of May 4, 2007, the date Bucyrus acquired DBT GmbH ("DBT"), through December 31, 2007. As a result, the financial results for the year ended December 31, 2008 are not necessarily comparable to the results for the year ended December 31, 2007 and may not be indicative of future results. Bucyrus has two reportable segments: surface mining and underground mining. Prior to the acquisition of DBT, all of Bucyrus' operations were in surface mining.
Consolidated Condensed Statements of Earnings (Unaudited)
Quarter Ended Year Ended
December 31, December 31,
--------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
(Dollars in thousands, except per share
amounts)
Sales $721,847 $547,951 $2,505,838 $1,613,391
Cost of products sold 537,356 411,629 1,823,335 1,205,066
---------- ---------- ---------- ----------
Gross profit 184,491 136,322 682,503 408,325
Selling, general and
administrative expenses 58,783 67,032 243,932 185,639
Research and development
expenses 9,130 8,024 36,550 20,358
Amortization of intangible
assets 4,176 12,611 19,390 29,181
---------- ---------- ---------- ----------
Operating earnings 112,402 48,655 382,631 173,147
Interest expense - net 9,643 8,563 28,562 24,195
Other expense 767 766 3,071 2,394
---------- ---------- ---------- ----------
Earnings before income
taxes 101,992 39,326 350,998 146,558
Income tax expense
(benefit) 36,242 (22,581) 117,683 10,424
---------- ---------- ---------- ----------
Net earnings $65,750 $61,907 $233,315 $136,134
========== ========== ========== ==========
Net earnings per share:
Basic:
Net earnings per share $0.88 $0.83 $3.14 $1.94
Weighted average shares 74,386,394 74,462,000 74,350,939 70,014,440
Diluted:
Net earnings per share $0.88 $0.82 $3.10 $1.93
Weighted average shares 75,065,459 75,307,058 75,205,020 70,715,340
Other Financial Data:
EBITDA (1) $126,143 $67,361 $438,881 $227,766
========== ========== ========== ==========
Non-cash stock
compensation expense(2) $1,995 $1,578 $7,056 $6,171
Severance (income)
expense(3) (1,334) 1,809 (450) 3,220
(Gain) loss on sale of
fixed assets(4) (600) 174 159 532
Inventory fair value
adjustment charged to
cost of products sold(5) -- 8,860 12,088 23,350
---------- ---------- ---------- ----------
$61 $12,421 $18,853 $33,273
========== ========== ========== ==========
---------------------
(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 ("GAAP") 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 severance and early retirement expenses for personnel
changes in the ordinary course and reversal of severance accruals.
(4) Reflects (gains) losses on the sale of fixed assets in the
ordinary course.
(5) In connection with the acquisition of DBT, inventories purchased
were adjusted to estimated fair value. This adjustment was
charged to cost of products sold as the inventory was sold.
EBITDA Reconciliation (Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Dollars in thousands)
Net earnings $65,750 $61,907 $233,315 $136,134
Interest expense - net 9,643 8,563 28,562 24,195
Income tax expense (benefit) 36,242 (22,581) 117,683 10,424
Depreciation 9,565 6,096 36,860 25,438
Amortization 4,943 13,376 22,461 31,575
-------- -------- -------- --------
EBITDA 126,143 67,361 438,881 227,766
Changes in assets and
liabilities (28,377) (15,319) (162,513) (106,261)
Non-cash stock compensation
expense 1,995 1,578 7,056 6,171
(Gain) loss on sale of fixed
assets (600) 174 159 532
Interest expense - net (9,643) (8,563) (28,562) (24,195)
Income tax (expense) benefit (36,242) 22,581 (117,683) (10,424)
-------- -------- -------- --------
Net cash provided by operating
activities $53,276 $67,812 $137,338 $93,589
======== ======== ======== ========
Consolidated Condensed Balance Sheets (Unaudited)
December 31, December 31,
2008 2007
---------- ----------
(Dollars in thousands)
Assets
------
Cash and cash equivalents $102,396 $61,112
Receivables - net 636,486 416,584
Inventories - net 616,710 494,425
Deferred income taxes 53,133 33,630
Prepaid expenses and other 26,045 41,038
---------- ----------
Total current assets 1,434,770 1,046,789
---------- ----------
Goodwill 330,211 317,238
Intangible assets - net 230,451 245,836
Other assets 68,823 47,946
---------- ----------
Total other assets 629,485 611,020
---------- ----------
Property, plant and equipment - net 488,396 410,403
---------- ----------
Total assets $2,552,651 $2,068,212
========== ==========
Liabilities and Common Stockholders'
------------------------------------
Investment
----------
Accounts payable and accrued expenses $438,626 $295,972
Liabilities to customers on uncompleted
contracts and warranties 252,304 158,390
Income taxes 70,091 55,086
Current maturities of long-term debt and
other short-term obligations 69,291 9,348
---------- ----------
Total current liabilities 830,312 518,796
---------- ----------
Deferred income taxes 52,895 50,920
Pension, postretirement benefits and other 218,181 160,925
---------- ----------
Total long-term liabilities 271,076 211,845
---------- ----------
Long-term debt, less current maturities 501,755 526,721
---------- ----------
Common stockholders' investment 949,508 810,850
---------- ----------
Total liabilities and common stockholders'
investment $2,552,651 $2,068,212
========== ==========
Segment Information (Unaudited)
Quarter Ended December 31, 2008
-----------------------------------------------------
Depreciation Capital
Operating and Expendi- Total
Sales Earnings Amortization tures Assets
-------- --------- ------------ --------- --------
(Dollars in thousands)
Surface mining $359,534 $61,841 $5,692 $43,817 $1,139,029
Underground
mining 362,313 55,357 8,049 12,768 1,413,622
-------- -------- ------- -------- ----------
Total
operations 721,847 117,198 13,741 56,585 2,552,651
Corporate N/A (4,796) N/A N/A N/A
-------- -------- ------- -------- ----------
Consolidated
total $721,847 112,402 13,741 $56,585 $2,552,651
======== ======== ======= ======== ==========
Interest expense
- net (9,643) N/A
Other expense (767) 767
-------- -------
Earnings before
income taxes $101,992 $14,508
======== =======
Quarter Ended December 31, 2007
-----------------------------------------------------
Depreciation Capital
Operating and Expendi- Total
Sales Earnings Amortization tures Assets
-------- --------- ------------ --------- --------
(Dollars in thousands)
Surface mining $286,041 $58,274 $3,623 $29,978 $781,123
Underground
mining 261,910 (5,480) 15,083 5,346 1,287,089
-------- -------- ------- -------- ----------
Total
operations 547,951 52,794 18,706 35,324 2,068,212
Corporate N/A (4,139) N/A N/A N/A
-------- -------- ------- -------- ----------
Consolidated
total $547,951 48,655 18,706 $35,324 $2,068,212
======== ======== ======= ======== ==========
Interest expense
- net (8,563) N/A
Other expense (766) 766
-------- -------
Earnings before
income taxes $39,326 $19,472
======== =======
Year Ended December 31, 2008
-------------------------------------------------------
Depreciation Capital
Operating and Expendi- Total
Sales Earnings Amortization tures Assets
---------- --------- ------------ --------- --------
(Dollars in thousands)
Surface
mining $1,282,519 $252,713 $20,505 $90,406 $1,139,029
Underground
mining 1,223,319 158,778 35,745 28,402 1,413,622
---------- -------- ------- -------- ----------
Total
operations 2,505,838 411,491 56,250 118,808 2,552,651
Corporate N/A (28,860) N/A N/A N/A
---------- -------- ------- -------- ----------
Consolidated
total $2,505,838 382,631 56,250 $118,808 $2,552,651
========== ======== ==========
Interest
expense - net (28,562) N/A
Other expense (3,071) 3,071
-------- -------
Earnings
before income
taxes $350,998 $59,321
======== =======
Year Ended December 31, 2007
-------------------------------------------------------
Depreciation Capital
Operating and Expendi- Total
Sales Earnings Amortization tures Assets
---------- --------- ------------ --------- --------
(Dollars in thousands)
Surface
mining $927,101 $165,238 $16,829 $81,169 $781,123
Underground
mining 686,290 18,269 37,790 15,712 1,287,089
---------- -------- ------- -------- ----------
Total
operations 1,613,391 183,507 54,619 96,881 2,068,212
Corporate N/A (10,360) N/A N/A N/A
---------- -------- ------- -------- ----------
Consolidated
total $1,613,391 173,147 54,619 $96,881 $2,068,212
========== ======== ==========
Interest
expense - net (24,195) N/A
Other expense (2,394) 2,394
-------- -------
Earnings
before income
taxes $146,558 $57,013
======== =======
Sales consisted of the following:
Quarter Ended December 31, Year Ended December 31,
-------------------------- -----------------------------
% %
2008 2007 Change 2008 2007 Change
-------- -------- ------ ---------- ---------- ------
(Dollars in thousands)
Surface mining:
Original
equipment $185,273 $121,439 52.6% $622,904 $398,662 56.2%
Aftermarket
parts and
service 174,261 164,602 5.9% 659,615 528,439 24.8%
-------- -------- ---------- ----------
359,534 286,041 25.7% 1,282,519 927,101 38.3%
-------- -------- ---------- ----------
Underground
mining:
Original
equipment 224,901 170,830 31.7% 737,554 448,252 64.5%
Aftermarket
parts and
service 137,412 91,080 50.9% 485,765 238,038 104.1%
-------- -------- ---------- ----------
362,313 261,910 38.3% 1,223,319 686,290 78.3%
-------- -------- ---------- ----------
Total:
Original
equipment 410,174 292,269 40.3% 1,360,458 846,914 60.6%
Aftermarket
parts and
service 311,673 255,682 21.9% 1,145,380 766,477 49.4%
-------- -------- ---------- ----------
$721,847 $547,951 31.7% $2,505,838 $1,613,391 55.3%
======== ======== ========== ==========
The increase in surface mining sales was the result of the strength of new orders in 2008 for Bucyrus' products and services throughout the world and the positive impact of the substantially completed capacity improvements at Bucyrus' principal surface mining manufacturing facility in South Milwaukee, Wisconsin. The high demand for Bucyrus' surface mining products and services was driven by high global commodity prices during the first three quarters of 2008. The increase in surface mining original equipment sales for the fourth quarter of 2008 compared to the fourth quarter of 2007 was due to increased electric mining shovel sales, and the increase for the year ended December 31, 2008 compared to the year ended December 31, 2007 was in electric mining shovels and draglines. The increase in surface mining aftermarket parts and service sales for the fourth quarter of 2008 was due to large increases in the Chile, Canada and United States markets, offset by declines in other markets, and the increase for the year ended December 31, 2008 compared to the year ended December 31, 2007 was in nearly all global markets. The expansion of Bucyrus' South Milwaukee, Wisconsin facilities was substantially completed in 2008, which increased annual shovel production capacity to at least 24 electric mining shovels and almost doubled manufactured parts capacity from 2006 levels.
The increase in underground mining sales for the fourth quarter of 2008 and year ended December 31, 2008 was in both original equipment and aftermarket parts and services and reflected the strong global demand for coal and strong coal prices throughout most of 2008. The increase in underground mining original equipment sales for the fourth quarter of 2008 and the year ended December 31, 2008 compared to the same periods in 2007 was in both the longwall and room and pillar product lines. The increase in underground mining aftermarket sales for the fourth quarter of 2008 and the year ended December 31, 2008 compared to the same periods in 2007 was primarily due to the strong global demand for high productivity longwall mining parts in connection with start-ups of new longwalls and major expansions of existing longwalls.
Gross profit for the fourth quarter of 2008 was $184.5 million, or 25.6% of sales, compared to $136.3 million, or 24.9% of sales, for the fourth quarter of 2007. Gross profit for the year ended December 31, 2008 was $682.5 million, or 27.2% of sales, compared to $408.3 million, or 25.3% of sales, for the year ended December 31, 2007. Gross profit was affected by purchase accounting adjustments as a result of the acquisition of DBT in 2007 as follows:
Quarter Ended Year Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Dollars in thousands)
(Increase) decrease due to
purchase accounting
adjustments ($485) $7,106 $10,777 $22,250
Gross margin increase
(reduction) 0.1% (1.3%) (0.4%) (1.4%)
The increase in gross profit for the fourth quarter of 2008 compared to the fourth quarter of 2007 was primarily due to increased sales volume in both segments. The decrease in gross margin percentage for the fourth quarter of 2008 compared to the full year of 2008 was partially the result of additional costs incurred related to the erection of draglines. Additional costs were incurred due to performance issues from new subcontractors as Bucyrus attempts to develop more worldwide dragline capacity. This delayed the erection time for the machines. The increase in gross profit for the year ended December 31, 2008 compared to the year ended December 31, 2007 was primarily due to the acquisition of DBT and increased surface mining sales. The availability of raw materials and raw material cost increases have not had a significant effect on gross margin or operating performance.
Selling, general and administrative expenses for the fourth quarter of 2008 were $58.8 million, or 8.1% of sales, compared to $67.0 million, or 12.2% of sales, for the fourth quarter of 2007. These expenses for the year ended December 31, 2008 were $243.9 million, or 9.7% of sales, compared to $185.6 million, or 11.5% of sales, for the year ended December 31, 2007. The increase in the dollar amount of expenses in 2008 compared to 2007 was primarily due to the acquisition of DBT in 2007. Included in the fourth quarter of 2007 were increased costs related to the SAP computer software upgrade in our underground mining segment and one-time expenses related to the integration of DBT.
Operating earnings were as follows:
Quarter Ended December 31, Year Ended December 31,
-------------------------- --------------------------
% %
2008 2007 Change 2008 2007 Change
-------- ------- ------ -------- -------- -------
(Dollars in thousands)
Surface mining $61,841 $58,274 6.1% $252,713 $165,238 52.9%
Underground mining 55,357 (5,480) -- 158,778 18,269 769.1%
-------- ------- -------- --------
Total operations 117,198 52,794 122.0% 411,491 183,507 124.2%
Corporate (4,796) (4,139) 15.9% (28,860) (10,360) 178.6%
-------- ------- -------- --------
Consolidated
total $112,402 $48,655 131.0% $382,631 $173,147 121.0%
======== ======= ======== ========
The increase in operating earnings for the fourth quarter of 2008 compared to the fourth quarter of 2007 was primarily due to increased gross profit resulting from increased sales volume in both segments and reduced selling, general and administrative expenses as a percentage of sales. The increase in operating earnings for the year ended December 31, 2008 was primarily due to the acquisition of DBT and increased gross profit resulting from increased surface mining sales volume. Operating earnings for underground mining segment were reduced by amortization of purchase accounting adjustments related to the acquisition of DBT of $3.1 million and $27.9 million for the quarter and year ended December 31, 2008, respectively, compared to $18.3 million and $49.1 million for the quarter and year ended December 31, 2007.
Net interest expense for the quarter and year ended December 31, 2008 was $9.6 million and $28.6 million, respectively, compared to $8.6 million and $24.2 million for the quarter and year ended December 31, 2007, respectively. The increase in net interest expense for the year ended December 31, 2008 compared to the year ended December 31, 2007 was due to increased debt levels related to the financing of the acquisition of DBT being outstanding only a portion of the year in 2007. The increase in net interest expense for the fourth quarter of 2008 compared to the third quarter of 2008 was due to increased revolving credit facility borrowings due to timing of cash receipts from customers.
The effective tax rate for the year ended December 31, 2008 was 33.5% compared to 7.1% for the year ended December 31, 2007. The low rate for 2007 reflects the impact of significant one-time tax benefits related to the underground mining segment in the fourth quarter of 2007. These include a $12.2 million deferred tax benefit resulting from a reduction in the German statutory tax rate and a $14.0 million foreign tax credit benefit resulting from repatriation of German earnings. Earnings in lower taxed jurisdictions resulted in $4.7 million of benefits and various other items resulted in an additional $4.7 million of benefits.
Net earnings for the fourth quarter of 2008 were $65.8 million or $0.88 per share, compared to $61.9 million, or $0.82 per share, for the fourth quarter of 2007. Net earnings for the year ended December 31, 2008 were $233.3 million, or $3.10 per share, compared to $136.1 million, or $1.93 per share, for the year ended December 31, 2007. Net earnings were reduced (increased) by amortizations of purchase accounting adjustments related to the acquisition of DBT as follows:
Quarter Ended Year Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Dollars in thousands)
Inventory fair value adjustment
charged to cost of product
sold $ -- $8,860 $12,088 $23,350
Amortization of intangible
assets 3,796 12,273 17,850 27,456
Depreciation of fixed assets
(655) (2,784) (1,992) (1,746)
-------- -------- -------- --------
Operating earnings 3,141 18,349 27,946 49,060
Income tax benefit 1,041 18,150 9,158 28,432
-------- -------- -------- --------
Total $2,100 $199 $18,788 $20,628
======== ======== ======== ========
EBITDA was as follows:
Quarter Ended December 31, Year Ended December 31,
-------------------------- -------------------------
% %
2008 2007 Change 2008 2007 Change
-------- -------- ------ -------- -------- ------
(Dollars in thousands)
EBITDA $126,143 $67,361 87.3% $438,881 $227,766 92.7%
EBITDA as a
percent of
sales 17.5% 12.3% 17.5% 14.1%
EBITDA includes the impact of non-cash stock compensation expense, severance expenses, loss on sales of fixed assets and the inventory fair value purchase accounting adjustment charged to cost of products sold as set forth in the Other Financial Data table beneath the Consolidated Condensed Statements of Earnings.
Capital expenditures for 2008 were $118.8 million, which included $45.5 million related to the expansion and additional renovation of Bucyrus' South Milwaukee facilities. Bucyrus' capital expenditures for 2009 are expected to be between $60 million and $70 million.
During the fourth quarter of 2008, two acquisitions were closed. In December, OKD Bastro a.s., an engineering services and manufacturing support company located in the Czech Republic, was acquired to support Bucyrus' long-term strategic initiatives in Europe. In October, Appalachian Mine Sales, Inc., a belt conveyor manufacturer with a presence in the Appalachia coal fields region, was acquired to strengthen Bucyrus' belt systems business.
Backlog as of December 31, 2008 and December 31, 2007, as well as the portion of backlog which is expected to be recognized within 12 months of these dates, was as follows:
December 31, December 31,
2008 2007 % Change
------------ ------------ --------
(Dollars in thousands)
Surface mining:
Total $1,367,242 $804,781 69.9%
Next 12 months $906,884 $579,448 56.5%
Underground mining:
Total $1,135,212 $636,473 78.4%
Next 12 months $806,074 $551,923 46.0%
Total:
Total $2,502,454 $1,441,254 73.6%
Next 12 months $1,712,958 $1,131,371 51.4%
A portion of the surface mining backlog as of December 31, 2008 and December 31, 2007 was related to multi-year contracts that will generate revenue in future years. The increase in 2008 surface mining backlog was largely due to strong surface mining original equipment bookings, primarily electric mining shovels, and strong aftermarket bookings in Chile, Australia, Canada and India. The increase in 2008 underground mining backlog was predominantly due to strong original equipment bookings, primarily longwall mining equipment, and strong aftermarket bookings.
New orders were as follows:
Quarter Ended December 31, Year Ended December 31,
-------------------------- -----------------------------
% %
2008 2007 Change 2008 2007 Change
-------- -------- ------ ---------- ---------- ------
(Dollars in thousands)
Surface mining:
Original
equipment $290,813 $7,760 -- $948,334 $353,389 168.4%
Aftermarket
parts and
service 117,666 183,305 (35.8%) 896,646 483,744 85.4%
-------- -------- ---------- ----------
408,479 191,065 113.8% 1,844,980 837,133 120.4%
-------- -------- ---------- ----------
Underground
mining:
Original
equipment 184,150 406,567 (54.7%) 1,148,357 634,223 81.1%
Aftermarket
parts and
service 125,160 96,023 30.3% 573,701 247,804 131.5%
-------- -------- ---------- ----------
309,310 502,590 (38.5%) 1,722,058 882,027 95.2%
-------- -------- ---------- ----------
Total:
Original
equipment 474,963 414,327 14.6% 2,096,691 987,612 112.3%
Aftermarket
parts and
service 242,826 279,328 (13.1%) 1,470,347 731,548 101.0%
-------- -------- ---------- ----------
$717,789 $693,655 3.5% $3,567,038 $1,719,160 107.5%
======== ======== ========== ==========
Included in surface mining aftermarket parts and service new orders for the years ended December 31, 2008 and December 31, 2007 was $281.5 million and $21.8 million, respectively, related to multi-year contracts that will generate revenue in future years. Fourth quarter 2008 surface mining new orders included a walking dragline sold to a customer in Australia.
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 20, 2009. Interested parties should call (888) 680-0869 ((617) 213-4854 for international callers), participant passcode 96374871. A replay of the teleconference will be available until March 20, 2009 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 98201992.
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 20, 2009.
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.
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:
* 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; * our customers deferring, delaying or canceling capital investments due to volatility and tightening of credit markets, unprecedented financial market conditions and a global recession; * disruption of our plant operations due to equipment failures, natural disasters or other reasons; * our ability to attract and retain skilled labor; * our production capacity; * our ability to purchase component parts or raw materials from key suppliers at acceptable prices and/or on the required time schedule; * our dependence on the commodity price of coal and other conditions in the coal market; * 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 highly competitive nature of the mining industry; * our ability to continue to offer products containing innovative technology that meets the needs of our customers; * costs and risks associated with regulatory compliance and changing regulations affecting the mining industry and/or electric utilities; * product liability, environmental and other potential litigation; * work stoppages at our company, our customers, our suppliers or providers of transportation; * our ability to satisfy underfunded pension and postretirement obligations; * our ability to protect intellectual property; and * the availability of operating cash to service our indebtedness.
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' 2007 Form 10-K filed with the Securities and Exchange Commission on February 29, 2008. 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.