Terex 1994 10K

ref: http://secfilings.nyse.com/download.php?format=PDF&ipage=37380&cik=

1. gross profit is about 10%.
2. net profit from operation is big negative or tiny.
3. net profit from operation cannot cover interest expense at all, so it had to sell Fruehauf to cover the interest expense.

4. regarding the engineering, selling and admin expense, why is it for 3rd party?

5. why is "gain on sale of Fruehauf" part of the operating actitities? Even though somewhere the company claims acquisition is the growth strategy so we can treat this sale as a normal operating activity, there is conflict in the investing activities which has the proceeds from sale of Fruehauf. Shouldn't these two items be grouped together in either operating or investing?
or, I misunderstood how the statement of cash flow should be organized?
Yes, I did misunderstand the statement of cash flow.
gain on sale of Fruehauf = proceeds from sale of Fruehauf - price paid to purchase Fruehauf
it affects net income, so it should be listed in operating activities.

6. senior notes bears interest at 13%, which is really high! It means lender is concerned of the company's capability to cover it.
I need to check how much the company's income can cover the debt.

7. page 38, "the assumed rate of compensation increases is 0% thru 1999". How could you assume it never grows in 5 years?

8. projected return on pension is as high as 9% even though it has been losing money two years in a row!