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This excerpt taken from the BUCY 8-K filed May 4, 2007. Combined 2007 Financial Guidance After giving pro forma effect to the acquisition of DBT as if it had occurred on January 1, 2007, Bucyrus estimates full year 2007 pro forma combined sales to be in the range of $1.9 to $2.0 billion and full year 2007 pro forma combined EBITDA, without reduction for estimated non-cash stock compensation expense or any customary purchase accounting adjustments resulting from the DBT acquisition, to be in the range of $255 to $275 million. In making these estimates, Bucyrus is reaffirming its previously announced stand-alone guidance range for 2007 sales of $875 to $925 million and EBITDA, without reduction for estimated non-cash stock compensation expense, of $155 to $165 million. This financial guidance is based on Bucyrus current expectations for the results of operations of both Bucyrus and DBT for the remainder of 2007, and takes into account that DBTs 2006 results of operations benefited significantly from an influx of new original equipment product orders from underground mining customers that had previously deferred their new underground equipment purchases during the prolonged prior period of weaker coal commodity prices. As a result, and in combination with the recent softening of U.S. coal commodity prices and reduced order intake levels at DBT for the first quarter of 2007 compared to the first quarter of 2006, Bucyrus believes that it is likely that DBTs 2007 revenues will return to more normalized levels than the unusually high levels recognized in 2006. Bucyrus anticipated and took this expected normalized level of results into account when it valued and entered into the agreement to acquire DBT. This financial guidance is an estimate as of todays date and is based on assumptions believed to be reasonable as of this date. Bucyrus is providing sales and EBITDA guidance in this format due to the significant impact of the DBT acquisition on its expected 2007 results of operations, and it does not necessarily intend to regularly issue guidance in this format in the future. Bucyrus expressly disclaims any current intention to update or revise this guidance, whether as a result of new information, future events or otherwise. For a description of some of the factors that could cause Bucyrus actual results to differ materially from the guidance reflected above, see Forward-Looking Statements and Cautionary Factors below. There can be no assurance that Bucyrus will achieve its financial guidance. |
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