WESTPORT, Conn. (Dow Jones/AP) _ Terex Corp. plans to move the manufacturing and assembly of its mining haul trucks and parts distribution operations, currently located in Tulsa, Okla., in a bid to save $2.7 million annually in fixed overhead and production costs.
In a news release Wednesday, the company said the moves will result in a $6.4 million accounting charge, including $1.3 million in cash expenses.
A Terex representative wasn't immediately available to provide the quarter in which the charge is expected to post. The company's current second quarter ends June 30.
The Tulsa manufacturing, assembly and distribution operations will be relocated to other Terex facilities or third-party suppliers, while Terex Mining's management, engineering and support staff will remain headquartered in Tulsa. The company doesn't expect any interruption in delivery and services.
``The current market environment for surface mining trucks requires a change in structure for Terex to remain profitable in this business,'' Terex said. ``We simply have too much manufacturing capacity at our Tulsa facility given a realistic view of the market.''
Terex posted first quarter sales of $582 million. The quarter's earnings, before a gain, were $7 million, or 18 cents a share.