SEC Approves $8 Million Settlement In Terex Accounting Probe

   DOW JONES NEWSWIRES 
 

Terex Corp. (TEX) said the Securities and Exchange Commission has approved a settlement reached in May to end the agency's probe of the construction equipment maker, which must pay an $8 million penalty.

The deal ends Terex's liability but not that of Terex employees.

The SEC investigation focused on the restatement of some Terex financial statements from 2000 to 2004 and the accounting for certain transactions between Terex and United Rentals Inc. (URI) in 2000 and 2001, and one transaction in 2001 between United Rentals and one of Terex's subsidiaries. It wasn't part of Terex at the time.

Without admitting or denying the SEC's charges, Terex was required to pay an $8 million civil penalty, already reserved for in the second quarter. The settlement also forbids Terex from any more violations of federal or SEC regulations regarding anti-fraud, reporting, internal controls or books and records.

Last month, Terex swung to a loss and cut its 2009 sales forecast, saying it would turn to cost cuts to counteract the hits it's taking from the recession.

Terex shares were recently up 3% at $15.96.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; [e-mail]