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Terex Reports 2001 Net Income Before Restructuring Charges of $40.1 Million or $1.39 Per Share

February 21, 2002

    -   Earnings per share in the fourth quarter, before non-recurring
        items, was $0.14, in line with previous guidance
    -   Cash flow from operations for the quarter was $18.5 million
    -   Net debt to book capital fell to 57%
WESTPORT, Conn., Feb 21, 2002 (BUSINESS WIRE) -- Terex Corporation (NYSE:TEX) today reported full year 2001 net income of $12.8 million, or $0.44 per share, compared to 2000 net income of $95.1 million, or $3.41 per share.

Excluding the impact of restructuring charges and special items, earnings per share for the full year 2001 and 2000 were $1.39 and $2.82, respectively. Impacting the full year EPS was the approximately 9.4 million shares issued in the fourth quarter increasing the weighted average fully diluted number of shares from 27.7 million for the nine months ended September 30, 2001 to 28.9 million for the year ended December 31, 2001. Net sales for the full year 2001 were $1,812.5 million, a 12% decrease from 2000 net sales of $2,068.7 million. Excluding the impact of acquisitions and divestitures, sales decreased approximately 17% year over year.

Fourth quarter net income was $1.6 million, or $0.05 per share. Excluding the impact of restructuring charges and special items, fourth quarter net income was $4.5 million, or $0.14 per share, which is within the expected range. Net sales for the fourth quarter were $442.1 million, compared to $446.6 million in last year's fourth quarter.

"We continue to operate in a challenging environment although we are cautiously optimistic about 2002. Our business model has allowed us to remain agile and adjust to today's uncertainty taking advantage of opportunities as they arise," said Ronald M. DeFeo, Terex Chairman and Chief Executive Officer. "Although we have seen 15% to 25% volume declines in some of our businesses, the Terex franchise is stronger today than a year ago. Our product and geographic diversity is helping us through this economic downturn."

Mr. DeFeo continued, "During 2001 we focused on executing our business model. We reorganized our businesses from a product line to a geographic focus to better service the customer, and we are getting better sales execution as a result. Consistent with this reorganization, we also restructured operations to reduce costs and improve manufacturing efficiencies with facility consolidations and the continued divestiture of the European aerials business. These efforts continue. We remained opportunistic on the acquisition front adding approximately $600 million in proforma revenues to the Company for 2002 with the acquisitions of CMI, Atlas and Schaeff. We also remained sensitive to the balance sheet reducing our net debt to book capital to 57%, the best this ratio has been since Terex was founded. We continue to believe that if we remain lean, profitable and customer focused during these uncertain times we will not only improve our competitiveness today, but be positioned to take advantage of the eventual economic recovery."

    A financial summary is shown below:
Terex Corporation
                       Fourth Quarter           Year-to-Date
             ---------------------------- ----------------------------
                 (dollars in millions, except per share amounts)
             2001          2000            2001           2000
             ------------ -----------  ----------------  -------------
                    % of         % of             % of           % of
                    sales        sales            sales         sales
                    -----        -----            -----         -----
Net sales   $442.1        $446.6         $1,812.5       $2,068.7
            ======        ======         ========        =======
Gross
 profit      $73.5  16.6%  $80.3  18.0%   $ 305.8  16.9%  $373.5 18.1%
SG&A          49.0  11.1%   37.6   8.4%     168.5   9.3%   161.9  7.8%
            ------         -----         --------         ------
Operating
 profit(1)
  (2)(3)(4)   24.5   5.5%   42.7   9.6%     137.3   7.6%   211.6 10.2%
Restructuring
 charges and
 special
 items        (2.8)  0.6%  (23.2)  5.2%     (37.0)  2.0%   (26.2) 1.3%
Gain on sale
 of business   ---    ---    ---    ---       ---    ---    57.2  2.8%
Interest
 and other   (18.6)  4.2%  (20.5)  4.6%     (79.6)  4.4%   (95.9) 4.6%
Income taxes  (1.5)  0.3%    0.3   0.1%      (7.9)  0.4%   (51.6) 2.5%
             ------        ------           ------         ------
Net income
 (loss)      $ 1.6   0.4%  $(0.7)  0.2%     $12.8   0.7%  $ 95.1  4.6%
             =====         ======           =====         ======
Earnings
(loss) per
 share      $ 0.05        $(0.03)          $ 0.44         $ 3.41
Adjusted
 EPS (5)    $ 0.14        $ 0.55           $ 1.39         $ 2.82
Backlog    $ 235.2        $219.8           $235.2         $219.8
EBITDA (5)  $ 35.3   8.0% $ 52.0  11.6%    $175.1   9.7%  $249.8 12.1%
Average Fully
 Diluted
 Shares
 Outstanding  32.5          27.3             28.9           27.9
(1) The fourth quarter of 2001 excludes $1.2 million related to
restructuring charges impacting gross profit, but includes $0.8
million in operating losses related to businesses held for sale.
(2) The fourth quarter of 2000 excludes $10.3 million related to the
closing of the Terex distribution facility in the United Kingdom, an
aggregate customer filing bankruptcy, and due diligence costs
associated with a large potential acquisition, which was not
consummated. The impact on gross profit and SG&A was $6.7 million and
$3.6 million, respectively.
(3) The full year 2001 excludes $33.1 million related primarily to
restructuring charges. The impact on gross profit and SG&A was $29.2
million and $3.9, respectively. The full year 2001 includes $1.3
million in operating losses related to businesses held for sale.
(4) The full year 2000 excludes $13.3 million in special items. $10.3
million as described in (2) above as well as restructuring charges
related to Terex Mining and a one-time gain related to pension
curtailment. The impact on gross profit and SG&A was $9.9 million and
$3.4 million, respectively.
(5) Adjusted for restructuring charges and special items identified in
(1), (2), (3), and (4) above.
    Fourth Quarter 2001 and Year-To-Date
Net sales for the fourth quarter were $442.1 million, compared to $446.6 million during last year's fourth quarter. Excluding the impact of acquisitions, net sales decreased 16% or approximately $70 million. Operating profit, excluding restructuring charges and special items, for the quarter was $24.5 million, compared to $42.7 million in the fourth quarter of last year. The decline in revenues, excluding the impact of acquisitions, can be attributed to the continued weakness in most of the end markets we serve. However, we did achieve quarter over quarter growth in the Powerscreen, boom truck, lattice boom crane, tower crane, and mining businesses. In particular, revenue and operating profit were impacted negatively by the European aerials businesses, which are currently held for sale, and the significant production cutbacks during the quarter at our Waverly, Iowa and Cedar Rapids, Iowa facilities. The production cutbacks were aimed to reduce inventory in the distribution channel in the mobile hydraulic crane and Cedarapids businesses in North America. Operating expenses, before restructuring and special items, were $49.0 million, or 11.1% of sales, in the quarter, compared to $37.6 million, or 8.4% of sales, in the fourth quarter of last year, primarily reflecting the impact of companies acquired and the decline in revenues. Net interest decreased to $19.5 million for the quarter from $20.7 million for the comparable period last year as the increase in average debt for the quarter was offset by a reduction in the average interest rate during the same period. Net income also includes a $1.6 million after-tax extraordinary expense to write off unamortized debt issuance costs related to debt paid in December.

Net sales for the year were $1,812.5 million, compared to $2,068.7 million last year, a decrease of 12%. Excluding the impact of acquisitions and divestitures, sales decreased approximately 17%, or approximately $348 million. Operating profit, excluding restructuring charges and special items, was $137.3 million, or 7.6% of sales, for 2001, a decrease of $74.3 million from the prior year of $211.6 million, or 10.2% of sales. Operating expenses for the full year 2001, before restructuring charges and special items, were $168.5 million, or 9.3% of sales, compared to $161.9 million last year, or 7.8% of sales. Excluding the impact of acquisitions and divestitures, operating expenses decreased 3% in 2001 as a result of Terex's continued emphasis on cost control. Net interest expense decreased $15.3 million to $79.0 million for 2001 from $94.3 million in 2000 reflecting the slight decrease in average debt during 2001 as well as a reduction in the average interest rate for the same period. Net income for the full year 2001 includes a $3.9 million after-tax extraordinary expense to write-off unamortized debt issuance costs related to debt paid in March and December of 2001.

Segment Performance
Terex Americas
                       Fourth Quarter           Year-to-Date
             ---------------------------- ----------------------------
                                (dollars in millions)
             2001          2000            2001           2000
             ------------ -----------  ----------------  -------------
                    % of         % of              % of          % of
                    sales       sales             sales         sales
                    -----        -----            -----         -----
Net sales   $196.2        $249.6          $ 857.8       $1,095.4
Gross
 profit       37.8  19.3%   42.4  17.0%     134.9  15.7%   176.2 16.1%
SG&A          22.9  11.7%   15.8   6.3%      71.0   8.3%    65.8  6.0%
Operating
profit(1)(2)  14.9   7.6%   26.6  10.7%      63.9   7.4%   110.4 10.1%
Backlog      118.1         129.3            118.1          129.3
(1) Excludes restructuring charges and special items for the fourth
quarter and full year 2001 of $0.9 million and $11.8 million,
respectively.
(2) Excludes restructuring charges and special items for the fourth
quarter and full year 2000 of $4.8 million and $3.0 million,
respectively.
Net sales in the Terex Americas group for the quarter decreased $53.4 million to $196.2 million from $249.6 million in the fourth quarter of 2001. Excluding the impact of acquisitions, sales declined approximately 38% during the fourth quarter of 2001 compared to the prior year period. Net sales were impacted by the double digit declines within the mobile hydraulic crane and the Cedarapids businesses as production volumes were reduced by over 65% at both locations and softness in our utility aerial device business. On the positive side we continued to gain market share in our boom truck and paving businesses during the quarter and our light construction business also reported quarter over quarter growth.

Operating profit, excluding restructuring charges and special items, for the quarter was $14.9 million, or 7.6% of sales, as compared to $26.6 million for the same period last year, or 10.7% of sales. Excluding the impact of acquisitions, operating profit was $12.8 million or 8.3% of sales. The impact production cutbacks had on gross profit and operating profit for the quarter is estimated at $2.6 million. Operating expenses for the quarter increased $7.1 million to $22.9 million, or 11.7% of sales. Excluding acquired businesses, operating expenses were flat in dollar terms and 10.1% of sales.

"Despite the continued weakness experienced in many of our end markets, the Americas Group posted very good results in this challenging environment," commented Ernie Verebelyi, Group President-Terex Americas. "During this period we have continued to take actions and execute on plans to improve the manufacturing efficiencies and cost structure of the group. We made significant progress on our previously announced restructuring plan, which will also yield results in 2002. During the quarter we have had significant production cutbacks at two of our facilities to reduce some of the excess inventory in the distribution channel that was highlighted during the third quarter. We took advantage of the slowdown in production at the Waverly facility to focus on the consolidation of our hydraulic crane products into the Waverly facility and ensure a smooth transition. The consolidation, which combines our U.S. mobile hydraulic crane business under one roof, is virtually complete. Although we believe the environment will remain challenging in the short term, successful implementation of the plans we have in place will improve the group's competitiveness and position us to take full advantage of any market recovery."

Terex Europe
                       Fourth Quarter           Year-to-Date
             ---------------------------- ----------------------------
                              (dollars in millions)
             2001          2000            2001           2000
             ------------ -----------  ----------------  -------------
                    % of         % of              % of          % of
                    sales       sales             sales         sales
                    -----        -----            -----         -----
Net sales   $203.3        $178.4          $ 872.3        $895.1
Gross
 profit       24.4  12.0%   25.5  14.3%     123.0  14.1%  146.9  16.4%
SG&A          16.9   8.3%   13.5   7.6%      64.8   7.4%   60.9   6.8%
Operating
 profit(1)
      (2)(3)   7.5   3.7%   12.0   6.7%      58.2   6.7%   86.0   9.6%
Backlog      119.1          65.0            119.1          65.0
(1) Excludes restructuring charges and special items for the fourth
quarter and full year 2001 of $0.3 million and $17.4 million,
respectively.
(2) Excludes restructuring charges and special items for the fourth
quarter and full year 2000 of $2.9 million.
(3) Includes $0.8 million and $1.3 million of operating losses related
to businesses sold or held for sale for the fourth quarter and full
year 2001, respectively.
Net sales for the Terex Europe group reached $203.3 million during the quarter, a 14% increase from last year's fourth quarter of $178.4 million. Excluding the impact of acquisitions, net sales were relatively flat quarter over quarter. The continued strong performance of the Powerscreen group and improvements within our lifting group in Europe, primarily Spain and Italy, offset declines in the construction business and the European aerial business. The European aerial business, which we have been de-emphasizing, is currently held for sale.

Operating profit, excluding restructuring and special items was $7.5 million, or 3.7% of sales, during the fourth quarter of 2001, as compared to $12.0 million, or 6.7% of sales, for the same period of last year. Excluding the impact of acquisitions, operating profit was $6.9 million, or 3.9% of sales. Continuing to impact the margin is the change in geographic mix in this business. The decline in North America has been offset somewhat by penetrating markets in Europe and South Africa, which historically have lower margins. Operating expenses were $16.9 million for the fourth quarter of 2001, or 8.3% of sales, compared to $13.5 million for last year's fourth quarter, or 7.6% of sales, as a result of the declining revenue base and the impact of acquisitions.

"Despite a continued slow down in the construction truck business driven primarily by the North American market, our other businesses posted solid results during the quarter given the current environment in which we operate," said Colin Robertson, President-Terex Europe. "Powerscreen, BL Pegson, Fermec, and Terex Lifting reported double digit revenue growth in the quarter. We remain optimistic about revenue opportunities with the Terex loader backhoe (Fermec) and newly acquired businesses that can be cross-sold with other Terex products. From a manufacturing perspective we are reviewing alternatives for further consolidation of facilities within the United Kingdom to continue to improve our cost structure and competitiveness."

Terex Mining
                       Fourth Quarter           Year-to-Date
             ---------------------------- ----------------------------
                              (dollars in millions)
             2001          2000            2001           2000
             ------------ -----------  ----------------  -------------
                    % of         % of              % of          % of
                    sales       sales             sales         sales
                    -----        -----            -----         -----
Net sales    $82.7         $69.5          $ 266.2        $319.3
Gross
 profit       10.8  13.1%   12.0  17.3%      48.3  18.1%   48.1  15.1%
SG&A           6.7   8.1%    8.6  12.4%      29.9  11.2%   36.4  11.4%
Operating
profit(1)(2)   4.1   5.0%    3.4   4.9%      18.4   6.9%   11.7   3.7%
Backlog       17.1          43.0             17.1          43.0
(1) Excludes restructuring charges and special items for the full year
2001 of $3.9 million.
(2) Excludes restructuring charges and special items for the full year
2000 of $4.8 million.
Net sales in the Terex Mining group reached $82.7 million in the quarter, compared to $69.5 million for the fourth quarter of 2000, or a 19% increase. The results for the quarter reflect increases in sales of both new machines and spare parts in the surface mining truck and hydraulic shovel businesses. The activity in the quarter was driven primarily by the coal and iron ore markets.

Operating profit for the quarter was $4.1 million, or 5.0% of sales, compared to $3.4 million, or 4.9% of sales, for the same quarter last year. Gross profit decreased from 17.3% of sales to 13.1% of sales and SG&A decreased from 12.4% of sales to 8.1% of sales, reflecting the reclassification of certain service expenses from operating expenses to cost of sales.

"Mining had a solid quarter given the general uncertainty surrounding the economy and commodity prices and the unwillingness of customers to make long term capital investments," said Thys de Beer, President-Terex Mining. "We continue to remain focused on the customer and although the market remains challenging we see opportunity in many geographic areas of the business where historically we have had very little market share. We continue to see activity in the coal, iron ore, and diamond markets, with coal having the majority of the prospects over the next twelve months."

    Acquisition Update
"We completed the acquisitions of CMI Corporation and Atlas Weyhausen during the fourth quarter of 2001, and the Schaeff acquisition closed in January 2002," commented Fil Filipov, Terex Executive Vice President. "We are aggressively implementing our 100-day plan for CMI, Atlas and Schaeff. CMI anticipated $20 million in annual savings, which we have already achieved. However, we continue to look for ways to improve our cost structure in order to offer competitive pricing and offset the softness in the market." Mr. Filipov added, "Our German acquisitions continue to move with speed to reduce cost and increase our market share. With slowing general economic conditions in Germany, we feel there are great cross selling opportunities with other Terex product and distribution channels."

    Capital Structure
"During the year we have successfully executed three capital market transactions raising $500 million in senior subordinated notes, expanding our revolver to $300 million and raising $96 million from the issuance of common stock," said Joseph F. Apuzzo, Chief Financial Officer. "The proceeds were primarily used to repay debt improving the balance sheet and strengthening our financial position. The Company also issued approximately 3.6 million shares in connection with the acquisition of CMI consistent with our commitment to maintain a balance between growth and leverage. Net debt at the end of 2001 was $805 million, and the net debt to book capitalization decreased to 57% at December 31, 2001 from 61% at December 31, 2000. When looking at the net debt to book capitalization, it is important to note that from December 1999 to December 2001 there have been significant fluctuations in exchange rates, primarily the British pound and Euro having a negative impact of approximately $100 million on equity."

Mr. Apuzzo continued, "Reduction in working capital and the generation of free cash flow continues to remain a focus of management. Cash flow from operations for the year, including $17 million of taxes paid related to the sale of the truck mounted forklift business and interest on the IRS settlement, was about breakeven. In the second half of 2001, we generated approximately $85 million in cash from operations. Working capital adjusted for acquisitions, as a percent of sales was reduced from about 41% at the end of June to about 38% at year-end. We expect to see continued benefits from our focus on working capital management. We are maintaining high liquidity in the short term through a combination of cash on the balance sheet and our $300 million revolver, which was virtually undrawn at December 31, 2001. As the markets we compete in stabilize and we see the economy begin to recover we will revisit our alternatives. Liquidity at December 31, 2001, including cash and the undrawn revolver was approximately $500 million."

    Recent Developments
Terex announced on January 15, 2002 it had completed the acquisition of The Schaeff Group, a leading German manufacturer of compact construction equipment, including mini and midi excavators, compact wheel loaders, and a full range of scrap material handlers.

The company has recently completed or entered into agreements to sell its European aerial businesses in Cork, Ireland and Holland Lift in the Netherlands, as well as its agricultural trailer business in Brimont, France. These businesses, which will be sold for net book value, contributed approximately $22 million in net sales during 2001.

    Outlook
    Outlook for 2002
"Terex will be a stronger and more profitable company in 2002 than 2001 despite the challenging economic environment and questionable visibility," commented Mr. DeFeo. "The reason for my cautious but firm optimism is based upon actions we have taken in 2001 and what we are implementing in 2002. We expect revenue will grow 25-30% from acquisitions that we believe will be accretive during the year. Soft markets will be offset by revenue growth on products where we have low market shares and lots of opportunity. The Terex cost structure, which by most measures was already efficient, has been further pruned with personnel reductions in the company (excluding acquisitions) of 20% along with the facility consolidations previously announced."

Mr. DeFeo continued, "We expect the first half to be weaker than the second half and the first quarter the weakest one of the year. We believe the company will earn in the range of $1.50 - $1.75 per share on a fully diluted basis of 39.3 million shares. This includes the impact of FAS 142. We also believe that we can continue to strengthen the balance sheet throughout the year."

    Safe Harbor Statement
The above contains forward-looking information based on Terex's current expectations. Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond Terex's control, include among others, the sensitivity of construction and mining activity to interest rates and government spending; impact of downward economic cycles and weaker general economic conditions; the success of the integration of acquired businesses; the retention of key management; foreign currency fluctuations; pricing, product initiatives, and other actions taken by competitors; the effect of changes in laws and regulations, including environmental laws and regulations; the effect of debt and restrictive covenants; and other factors, risks, uncertainties more specifically set forth in Terex's public filings with the SEC. The forward-looking statements herein speak only as of the date of this release. Terex expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this release to reflect any changes in Terex's expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.

Terex Corporation is a diversified global manufacturer based in Westport, Connecticut, with 2001 annual revenues in excess of $1.8 billion. Terex is involved in a broad range of construction, infrastructure, recycling and mining-related capital equipment under the brand names of American, Amida, Atlas, B.L. Pegson, Bartell, Bendini, Benford, Bid-Well, CMI, Canica-Jaques, Cedarapids, Cifali, Coleman, Comedil, Fermec, Finlay, Franna, Fuchs, Grayhound, Jaques, Italmacchine, Koehring, Load King, Lorain, Marklift, Matbro, Morrison, Muller, O&K, P&H, PPM, Payhauler, Peiner, Powerscreen, RO, Schaeff, Simplicity, Square Shooter, Telelect, Terex, and Unit Rig. More information on Terex can be found at www.terex.com.

                  TEREX CORPORATION AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                 (in millions, except per share data)
                              (unaudited)
                       For the Three Months      For the Twelve Months
                       Ended December 31,         Ended December 31,
                      ----------------------    ---------------------
                        2001          2000        2001         2000
                      ---------     --------    --------   -----------
Net sales             $   442.1     $  446.6   $ 1,812.5   $  2,068.7
Cost of goods sold        369.8        373.0     1,535.9      1,705.1
                      ---------     --------    --------   -----------
    Gross profit           72.3         73.6       276.6        363.6
Selling, general and
 administrative expenses   49.0         41.2       172.4        165.3
                      ---------     --------    --------   -----------
 Income from operations    23.3         32.4       104.2        198.3
Other income (expense):
 Interest income            1.1          1.4         7.7          5.5
 Interest expense         (20.6)       (22.1)      (86.7)       (99.8)
 Gain on sales
  of businesses             ---          ---         ---         57.2
 Other income
 (expense) - net            0.9          0.2        (0.6)        (1.6)
                      ---------     --------    --------   -----------
Income from continuing
 operations before
 income taxes and
 extraordinary items        4.7         11.9        24.6        159.6
Provision for
  income taxes             (1.5)        (3.8)       (7.9)       (55.7)
                      ---------     --------    --------   -----------
 Income from continuing
  operations before
  extraordinary items       3.2          8.1        16.7        103.9
Loss from
 discontinued operations    ---         (7.3)        ---        (7.3)
                      ---------     --------    --------   -----------
Income before
 extraordinary items        3.2          0.8        16.7         96.6
Extraordinary loss on
  retirement of debt       (1.6)        (1.5)       (3.9)        (1.5)
                      ---------     --------    --------   -----------
Net income (loss)        $  1.6      $  (0.7)    $  12.8    $    95.1
                      =========     =========   ========   ===========
EARNINGS PER SHARE: -
  Basic:
    Income from
     continuing
     operations        $   0.10      $  0.30     $  0.60    $    3.82
    Loss from
     discontinued
     operations             ---        (0.27)        ---        (0.27)
                      ---------     --------    --------   -----------
    Income before
     extraordinary
     items                 0.10         0.03        0.60         3.55
    Extraordinary loss
     on retirement
     of debt              (0.05)       (0.06)      (0.14)       (0.05)
                      ---------     --------    --------   -----------
      Net income (loss)  $ 0.05      $ (0.03)   $   0.46     $   3.50
                      =========     =========   ========   ===========
  Diluted:
    Income from
     continuing
     operations         $  0.10      $  0.30     $  0.58     $   3.72
    Loss from
     discontinued
     operations             ---        (0.27)        ---        (0.26)
                      ---------     --------    --------   -----------
    Income before
     extraordinary
     items                 0.10         0.03        0.58         3.46
    Extraordinary loss
     on retirement
     of debt              (0.05)       (0.06)      (0.14)       (0.05)
                      ---------     --------    --------   -----------
     Net income (loss)   $ 0.05      $ (0.03)    $  0.44      $  3.41
                      =========     =========   ========   ===========
Weighted average number
 of common and common
 equivalent shares
 outstanding in per
 share calculation
        Basic              31.9         26.8        28.1         27.2
        Diluted            32.5         27.3        28.9         27.9
                  TEREX CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEET
                    (In millions, except par value)
                              (Unaudited)
                                             December 31,
                                       -------------------------
                                         2001           2000
                                       ---------      ----------
CURRENT ASSETS
   Cash and cash equivalents            $ 250.4       $  181.4
   Trade receivables                      351.7          360.2
   Inventories                            707.8          598.1
   Deferred taxes                          23.7           51.0
   Other current assets                    52.5           51.7
                                       ---------      ---------
       Total Current Assets             1,386.1        1,242.4
LONG-TERM ASSETS
   Property, plant and equipment          175.0          153.9
   Goodwill                               620.3          491.4
   Deferred taxes                          75.4           21.2
   Other assets                           134.6           74.8
                                      ----------     ----------
TOTAL ASSETS                          $ 2,391.4      $ 1,983.7
                                      ==========     ==========
CURRENT LIABILITIES
   Notes payable and current
    portion of long-term debt           $  34.7      $    20.5
   Trade accounts payable                 291.0          311.2
   Accrued compensation and benefits       37.3           25.9
   Accrued warranties
     and product liability                 66.8           65.2
   Other current liabilities              201.7          152.8
                                      ----------     ----------
    Total Current Liabilities             631.5          575.6
NON CURRENT LIABILITIES
  Long-term debt,
    less current portion                1,020.7          882.0
  Other                                   143.8           74.6
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
  Equity rights                             0.5            0.7
  Common Stock, $0.01 par value -
   Authorized 150.0 shares; issued
    37.5 and 27.9 shares at
    December 31, 2001 and 2000,
    respectively                            0.4            0.3
   Additional paid-in capital             532.4          358.9
   Retained earnings                      199.9          187.1
   Accumulated other
    comprehensive income                 (120.3)         (78.5)
   Less cost of shares of common
    stock in treasury (1.1 shares)        (17.5)         (17.0)
                                     -----------      ---------
      Total Stockholders' Equity          595.4          451.5
                                     -----------      ---------
TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY               $  2,391.4      $ 1,983.7
                                     ==========      =========
                  TEREX CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF CASH FLOWS
                             (in millions)
                              (unaudited)
                                             Year Ended
                                             December 31,
                                       -------------------------
                                         2001           2000
                                       ---------      ----------
OPERATING ACTIVITIES
 Net income                             $  12.8         $  95.1
 Adjustments to reconcile net income
  to cash provided by (used in)
  operating activities:
   Depreciation                            22.5            23.0
   Amortization                            17.8            18.5
   Extraordinary loss on
    retirement of debt                      3.9             1.5
   Gain on sale of businesses               ---           (34.2)
   Gain on sale of fixed assets            (1.5)           (0.6)
   Restructuring charges                   19.5            ---
   Loss from discontinued operations        ---             7.3
   Changes in operating assets
     and liabilities (net of
     effects of acquisitions):
     Trade receivables                     28.1            64.2
     Net inventories                      (19.6)           43.6
     Trade accounts payable               (40.5)           12.8
     Other, net                           (48.5)          (30.6)
                                       ---------      ----------
       Net cash provided by (used in)
         operating activities              (5.5)          200.6
                                       ---------      ----------
INVESTING ACTIVITIES
   Acquisition of businesses,
      net of cash acquired                (89.7)          (20.0)
   Proceeds from sale of businesses         ---           144.3
   Capital expenditures                   (13.5)          (24.2)
   Proceeds from sale of assets             8.0            10.8
   Other                                  (41.1)            ---
                                       ---------      ----------
     Net cash provided by (used in)
      investing activities               (136.3)          110.9
                                       ---------      ----------
FINANCING ACTIVITIES
   Proceeds from issuance of
    long-term debt, net of
    issuance costs                        481.4             ---
   Issuance of common stock                96.3             ---
   Principal repayments of
    long-term debt                       (388.5)         (183.1)
   Net borrowings (repayments) under
    revolving line of
    credit agreements                      23.6           (53.6)
   Purchase of common stock
    held in treasury                        ---           (20.2)
   Other                                   (1.3)           (4.3)
                                       ---------      ----------
     Net cash provided by (used in)
      financing activities                211.5          (261.2)
                                       ---------      ----------
EFFECT OF EXCHANGE RATE CHANGES
 ON CASH AND CASH EQUIVALENTS              (0.7)           (2.2)
                                       ---------      ----------
NET INCREASE IN CASH
  AND CASH EQUIVALENTS                     69.0            48.1
CASH AND CASH EQUIVALENTS
 AT BEGINNING OF PERIOD                   181.4           133.3
                                       ---------        --------
CASH AND CASH EQUIVALENTS
 AT END OF PERIOD                      $  250.4         $ 181.4
                                       ========         ========
CONTACT:          Terex Corporation, Westport
                  Kevin O'Reilly, 203/222-5943

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