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Terex Reports Third Quarter Net Income of $13.9 Million or $0.31 Per Share Before Special Items

October 24, 2002

WESTPORT, Conn.--(BUSINESS WIRE)--Oct. 24, 2002--Terex Corporation (NYSE:TEX) today announced net income for the third quarter of 2002 of $9.8 million, or $0.22 per share, compared to a loss of $10.9 million, or $0.41 per share, for the third quarter of 2001. Excluding the impact of special items, income for the third quarter of 2002 was $13.9 million, or $0.31 per share, compared to $9.0 million, or $0.32 per share, for the third quarter of 2001. Special items in the third quarter of 2002 include: a loss on the early extinguishment of debt related to the refinancing of Terex's bank credit facility; restructuring actions primarily related to the consolidation of facilities within the light construction business; inventory valuation adjustments related to the acquisitions of Demag and Genie which do not reflect the ongoing performance of the businesses; the operating performance for certain businesses in the process of being sold or phased down, the equity loss on Terex's minority investment in Tatra, a.s.; and a foreign exchange loss related to a forward purchase of Euros to hedge the acquisition of Demag. These items were partially offset by a favorable ruling related to a patent infringement case within the Powerscreen group. Special items in the third quarter of 2001 included restructuring charges associated with the consolidation of 11 facilities and other cost reduction initiatives. Net loss for the nine months ended September 30, 2002 was $92.2 million, or $2.17 per share, compared to net income of $11.2 million, or $0.40 per share, for the comparable period in 2001. Income excluding special items for the nine months ended September 30, 2002 was $41.4 million, or $0.97 per share, compared to $35.6 million, or $1.29 per share, for the nine months ended September 30, 2001.

"Our third quarter performance reflects the reality that a recovery in the second half of 2002 has not materialized," commented Ronald M. DeFeo, Terex Chairman and Chief Executive Officer. "Despite this we were generally in line with our expectations, except for the performance at CMI and Atlas, which had operating losses for the quarter. At CMI the issue is revenue, as budget matters at the federal, state and local levels have negatively impacted public works spending while non-residential spending continues to be off dramatically year over year. At Atlas, we are a quarter or two behind our operational restructuring goals but remain positive about the contribution potential from this business in 2003." Mr. DeFeo added, "Our base businesses, excluding special items, although down 13% on the top line, actually improved operating margins to 8.9% compared to 7.4% for the third quarter of 2001, reflecting results of the actions we have taken as a management team to reduce the cost structure of the company. We have also seen our operating margins improve from 8.5% in the second quarter of 2002 despite an 18% reduction in revenues."

Mr. DeFeo continued, "During the third quarter, we continued to put the building blocks of our future growth into place. We completed the acquisition of Demag on August 30, 2002 and the acquisition of Genie on September 18, 2002. These acquisitions had modest positive impact for the quarter, and given the seasonality of these businesses, particularly Genie, we anticipate that they will have a neutral impact for the full year. We also continued implementing our business model within our core and newly acquired operations. Several initiatives were implemented at existing operations to lower cost and eliminate duplicate or underutilized facilities. I expect this process to continue and perhaps even accelerate as we integrate Demag and Genie. In addition, we have developed several new products that will be introduced in the next few months that we believe will improve our competitiveness in 2003."

 
    A financial summary is shown below:


                               Three months ended September 30,
                       -----------------------------------------------
                                             2002
                       -----------------------------------------------
                           (in millions, except per share amounts)

                                                            Excluding
                                                Excluding Acquisitions
                                     Special     Special   & Special
                        Reported     Items (1)    Items      Items
                       -----------------------------------------------
                       -----------------------------------------------

Sales ................ $    674.1  $   (8.7)   $    665.4  $    395.6
                        ==========  ==========  ==========  ==========

Gross profit ......... $     88.7  $    7.3    $     96.0  $     68.6
SG&A .................       54.7      (1.2)         53.5        33.3
                        ----------  ----------  ----------  ----------
Operating profit .....       34.0       8.5          42.5  $     35.3
                                                            ==========
Interest and other ...      (17.3)     (5.0)        (22.3)
Income taxes .........       (5.3)     (1.0)         (6.3)
Extraordinary
 loss on debt ........       (1.6)      1.6           ---
                        ----------  ----------  ----------
Net income ........... $      9.8  $    4.1    $     13.9
                        ==========  ==========  ==========

Earnings per share ... $      0.22             $      0.31
EBITDA ............... $     43.4  $    8.5    $     51.9
Backlog .............. $    409.2              $    409.2

Average Fully Diluted
Shares Outstanding ...     45.2                    45.2
                       -----------------------------------------------
                       -----------------------------------------------


                               Three months ended September 30,
                       -----------------------------------------------
                                             2001
                       -----------------------------------------------
                           (in millions, except per share amounts)

                                                            Excluding
                                                Excluding Acquisitions
                                     Special     Special   & Special
                        Reported     Items (2)    Items      Items
                       -----------------------------------------------
                       -----------------------------------------------

Sales ................ $    453.7  $    ---    $    453.7  $    453.7
                        ==========  ==========  ==========  ==========

Gross profit ......... $     45.5  $   24.6    $     70.1  $     70.1
SG&A .................       41.8      (4.6)         37.2        37.2
                        ----------  ----------  ----------  ----------
Operating profit .....        3.7      29.2          32.9  $     32.9
                                                            ==========
Interest and other ...      (19.7)      ---         (19.7)
Income taxes .........        5.1      (9.3)         (4.2)
Extraordinary
 loss on debt ........        ---       ---           ---
                        ----------  ----------  ----------
Net income ........... $    (10.9) $   19.9    $      9.0
                        ==========  ==========  ==========

Earnings per share ... $     (0.41)            $      0.32
EBITDA ............... $     12.5  $   29.2    $     41.7
Backlog .............. $    142.6              $    142.6

Average Fully Diluted
Shares Outstanding ...     26.9                    27.9
                       -----------------------------------------------
                       -----------------------------------------------

    (1) Special items relate to the restructuring charge for debt
        extinguishment ($1.6 million), restructuring in light
        construction, CMI and Terex Cranes ($2.4 million), foreign
        exchange loss on Euros held for Demag acquisition ($0.9
        million), equity loss on minority interest in Tatra ($1.2
        million), Genie and Demag fair value accounting treatment
        ($2.5 million), and businesses held for sale or phase down
        ($0.9 million), offset by a favorable ruling on a legal claim
        ($5.4 million).
    (2) Special items relate to the restructuring charge for the
        consolidation of 11 facilities and other cost reduction
        initiatives ($19.6 million) as well as businesses held for
        sale ($0.3 million).


                               Nine months ended September 30,
                       -----------------------------------------------
                                             2002
                       -----------------------------------------------
                           (in millions, except per share amounts)

                                                            Excluding
                                                Excluding Acquisitions
                                     Special     Special   & Special
                        Reported     Items (2)    Items      Items
                       -----------------------------------------------
                       -----------------------------------------------

Sales ................ $  1,946.3  $   (8.7)   $  1,937.6  $  1,334.6
                        ==========  ==========  ==========  ==========

Gross profit ......... $    291.9  $   20.9    $    312.8  $    219.8
SG&A .................      187.8      (1.8)        186.0       114.4
                        ----------  ----------  ----------  ----------
Operating profit .....      104.1      22.7         126.8  $    105.4
                                                            ==========
Interest and other ...      (70.6)      4.5         (66.1)
Income taxes .........      (10.7)     (8.6)        (19.3)
Extraordinary
 loss on debt ........       (1.6)      1.6           ---
Cumulative effect
 of accounting
 change (1) ..........     (113.4)    113.4           ---
                        ----------  ----------  ----------
Net income (loss) .... $    (92.2) $  133.6    $     41.4
                        ==========  ==========  ==========
Earnings (loss)
 per share ........... $     (2.17)            $      0.97
EBITDA ............... $    130.0  $   22.7    $    152.7
Backlog .............. $    409.2              $    409.2

Average Fully Diluted
Shares Outstanding ...     42.5                    42.5
                       -----------------------------------------------
                       -----------------------------------------------


                               Nine months ended September 30,
                       -----------------------------------------------
                                             2001
                       -----------------------------------------------
                           (in millions, except per share amounts)

                                                            Excluding
                                                Excluding Acquisitions
                                     Special     Special   & Special
                        Reported     Items (3)    Items      Items
                       -----------------------------------------------
                       -----------------------------------------------

Sales ................ $  1,370.4  $   11.8    $  1,382.2  $  1,382.2
                        ==========  ==========  ==========  ==========

Gross profit ......... $    204.3  $   27.8    $    232.1  $    232.1
SG&A .................      123.4      (4.6)        118.8       118.8
                        ----------  ----------  ----------  ----------
Operating profit .....       80.9      32.4         113.3       113.3
                                                            ==========
Interest and other ...      (61.0)      ---         (61.0)
Income taxes .........       (6.4)    (10.3)        (16.7)
Extraordinary
 loss on debt ........       (2.3)      2.3           ---
Cumulative effect
 of accounting
 change (1) ..........        ---       ---           ---

Net income (loss) .... $     11.2  $   24.4    $     35.6
                        ==========  ==========  ==========
Earnings (loss)
 per share ........... $      0.40             $      1.29
EBITDA ............... $    107.4  $   32.4    $    139.8
Backlog .............. $    142.6              $    142.6

Average Fully Diluted
Shares Outstanding ...     27.7                    27.7
                       -----------------------------------------------
                       -----------------------------------------------

    (1) Relates to the charge associated with the adoption of SFAS No.
        142 "Goodwill and Other Intangible Assets" ($124.1 million)
        and the income associated with the adoption of SFAS No. 141
        "Business Combination" ($10.7 million).
    (2) Special items relate to the restructuring charge for the
        closure of the Tulsa, Oklahoma facility ($2.8 million),
        closure of the Standard Havens facility ($0.8 million),
        headcount reductions at Cedarapids ($0.6 million),
        restructuring in light construction, CMI and Terex Cranes
        ($2.4 million), extraordinary loss on debt ($1.6 million),
        equity loss on minority interest in Tatra ($1.2 million),
        Genie and Demag fair value accounting treatment ($2.5
        million), businesses held for sale or phase down ($0.9
        million), and the write down of certain assets within the
        light construction group, European lifting group and EarthKing
        subsidiary ($15.6 million), offset partially by a foreign
        exchange rate gain related to the Demag acquisition ($2.8
        million) and a favorable ruling on a legal claim ($5.4
        million).
    (3) Relates to the extraordinary loss on the early extinguishment
        of debt ($2.3 million), a one-time charge for the cost
        associated with the return of five trucks by a mining customer
        ($2.2 million), the restructuring charge for the consolidation
        of 11 facilities and other cost reduction initiatives ($19.6
        million), as well as businesses held for sale ($0.3 million).





Segment Performance (Excludes special items)

Terex Cranes

                               Three months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                    -----                     -----
Net sales ............ $    171.5              $    123.0
                        ==========              ==========
Gross profit (1)...... $     23.3   13.6%      $     16.5     13.4%
SG&A .................       11.5    6.7%             9.2      7.5%
                        ----------              ----------
Operating profit (1).. $     11.8    6.9%      $      7.3      5.9%
                        ==========              ==========
Backlog .............. $    186.4              $     44.1


                                Nine months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                   -------                   -------
Net sales ............ $    443.0              $    402.6
                        ==========              ==========
Gross profit (1)...... $     61.8   14.0%      $     58.7     14.6%
SG&A .................       30.4    6.9%            29.6      7.4%
                        ----------              ----------
Operating profit (1).. $     31.4    7.1%      $     29.1      7.2%
                        ==========              ==========
Backlog .............. $    186.4              $     44.1

    (1) The third quarter and nine months of 2001 includes $0.3
        million and $1.0 million of goodwill amortization,
        respectively.

    Net sales in the Terex Cranes group increased $48.5 million to
$171.5 million from $123.0 million in the third quarter of 2001.
Excluding the impact of the Demag acquisition, net sales for the
quarter increased 2% compared to the third quarter of last year. SG&A
expenses increased $2.3 million to $11.5 million, or 6.7% of sales,
from $9.2 million, or 7.5% of sales, in the third quarter of 2001,
reflecting the impact of acquisitions. Excluding acquisitions, SG&A
expenses decreased in dollars and as a percentage of sales to 6.2%.
Operating profit increased 62% to $11.8 million from $7.3 million in
the third quarter of 2001, reflecting the impact of the acquisitions.
    "The worldwide crane market remains challenging, with softness in
many of our end markets," commented Fil Filipov, President - Terex
Cranes. "Our mobile telescopic crane and lattice boom crane businesses
face difficult market conditions, with double digit revenue declines
during the quarter. These decreases have been offset by the
acquisition of Demag, continued growth in our boom truck business and
continued delivery on our material handler contract with the U.S.
Marine Corps."
    Mr. Filipov continued, "We are aggressively implementing our
100-day plan at Demag. The addition of Demag has not only transformed
Terex into a global crane company, but also allows us to do things
differently and take advantage of the larger manufacturing scale we
now have in the Europe. We have begun to evaluate restructuring
opportunities in the third quarter and expect to consolidate
manufacturing operations and underutilized facilities and review how
we go to market to take full advantage of cost savings and synergies
beginning in the fourth quarter."

Terex Construction

                               Three months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                    -----                     -----
Net sales ............ $    312.5              $    183.9
                        ==========              ==========
Gross profit (1)...... $     35.2   11.3%      $     26.7     14.5%
SG&A .................       20.2    6.5%            13.4      7.3%
                        ----------              ----------
Operating profit (1).. $     15.0    4.8%      $     13.3      7.2%
                        ==========              ==========
Backlog .............. $     88.6              $     42.4


                                Nine months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                   -------                   -------
Net sales ............ $    923.8              $    567.6
                        ==========              ==========
Gross profit (1)...... $    137.1   14.8%      $     89.0     15.7%
SG&A .................       77.5    8.4%            40.2      7.1%
                        ----------              ----------
Operating profit (1).. $     59.6    6.5%      $     48.8      8.6%
                        ==========              ==========
Backlog .............. $     88.6              $     42.4

    (1) The third quarter and nine months of 2001 includes $1.2
        million and $3.5 million of goodwill amortization,
        respectively.

    Net sales in the Terex Construction group increased $128.6 million
to $312.5 million from $183.9 million in the third quarter of 2001,
driven primarily by the impact of the acquisitions of Atlas and
Schaeff and an 6% increase in its base businesses. The growth in the
base businesses was led by strong performances at the Powerscreen
group, Benford and the material handler businesses, as well as the
continued growth and market penetration of the Terex loader backhoe.
These increases were partially offset by a revenue decline in the
off-highway truck business. SG&A expenses for the third quarter were
$20.2 million, or 6.5% of sales, compared to $13.4 million, or 7.3% of
sales, for the third quarter of 2001. Excluding acquisitions, SG&A
expenses increased slightly to 7.9% of sales. Operating profit for the
quarter was $15.0 million, compared to $13.3 million for the third
quarter of 2001. Excluding the impact of acquisitions, operating
profit increased to $14.0 million, or 7.2% of revenues. The decrease
in operating margin for the quarter was due primarily to a shift in
product mix and the revenue decline in the off-highway truck business.
    "The Terex Construction Group had mixed results for the quarter,"
commented Colin Robertson, President - Terex Construction. "Our base
businesses performed particularly well given the current market
conditions, with the exception of our off-highway truck business,
which had revenue declines approaching 10% during the quarter. The
Powerscreen group continues to post impressive results, capitalizing
on the trend in the market towards mobile tracked crushing and
screening equipment and away from stationary plants to increase the
customers' flexibility and productivity. We are also seeing results in
the U.K. from marketing Terex's expanded range of compact equipment
products, from wheeled loaders to mini-excavators to dumpers and
rollers to loader backhoes. This approach has been quite successful in
leveraging existing customer relationships and cross selling other
Terex products, primarily into the U.K. rental channels, and we plan
to expand this approach to other countries. Finally, the Terex loader
backhoe continues to perform well in the U.S."
    Mr. Robertson continued, "The recent acquisitions in the Terex
Construction group have had mixed results to date. The Schaeff
acquisition is performing as expected. Although there has been some
softness in the top line at Schaeff, it has been offset by additional
cost saving. Atlas, on the other hand, continues to perform at an
operating loss. Although there has been a significant improvement from
the run rate at the time it was acquired, we expect that it will take
at least until the end of this year before it is a positive
contributor to the Company's bottom line."

Terex Mining

                               Three months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                    -----                     -----
Net sales ............ $    69.6               $     91.7
                        ==========              ==========
Gross profit (1)...... $      9.4   13.5%      $     14.8     16.1%
SG&A .................        6.3    9.1%             5.8      6.3%
                        ----------              ----------
Operating profit (1).. $      3.1    4.5%      $      9.0      9.8%
                        ==========              ==========
Backlog .............. $     21.7              $     30.2


                                Nine months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                   -------                   -------
Net sales ............ $    208.1              $    183.4
                        ==========              ==========
Gross profit (1)...... $     25.9   12.4%      $     37.5     20.4%
SG&A .................       20.1    9.7%            23.2     12.6%
                        ----------              ----------
Operating profit (1).. $      5.8    2.8%      $     14.3      7.8%
                        ==========              ==========
Backlog .............. $     21.7              $     30.2

    (1) The third quarter and nine months of 2001 includes $0.6
        million and $2.1 million of goodwill amortization,
        respectively.

    Net sales for the Terex Mining group decreased $22.1 million to
$69.6 million from $91.7 million in the third quarter of 2001. The
decrease in sales is primarily attributed to the decrease in the
surface mining truck business, as the hydraulic shovel business
continued to perform as expected. The decrease in operating profit
from $9.0 million in the third quarter of 2001 to $3.1 million in the
third quarter of 2002 relates to product mix, as sales of higher
margin spare parts decreased by $12 million compared to unusually
strong parts revenue in the third quarter of 2001, and to lower sales
volume in the truck business.
    "Although the mining environment continues to be challenging, we
are beginning to see some of the results from the difficult decisions
we made earlier in the year," commented Thys de Beer, President -
Terex Mining. "The closure of the Tulsa facility is moving on schedule
and we have already seen the impact of this decision, as operating
margins increased to 4.5% of sales during the quarter from 1.5% of
sales in the second quarter of 2002 despite a 5% reduction in
revenues. By no means are we happy with these returns, and we will
continue to look for ways to reduce our cost structure and investment
in this business going forward as we manage through this downturn."

Terex Roadbuilding and Utility Products

                               Three months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                    -----                     -----
Net sales ............ $    135.3              $     69.6
                        ==========              ==========
Gross profit (1)...... $     24.9   18.4%      $     12.4     17.8%
SG&A .................       16.5   12.2%             8.4     12.1%
                        ----------              ----------
Operating profit (1).. $      8.4    6.2%      $      4.0      5.7%
                        ==========              ==========
Backlog .............. $    104.6              $     25.9


                                Nine months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                   -------                   -------
Net sales ............ $    425.6              $    259.4
                        ==========              ==========
Gross profit (1)...... $     84.6   19.9%      $     46.2     17.8%
SG&A .................       55.2   13.0%            25.6      9.9%
                        ----------              ----------
Operating profit (1).. $     29.4    6.9%      $     20.6      7.9%
                        ==========              ==========
Backlog .............. $    104.6              $     25.9

    (1) The third quarter and nine months of 2001 includes $0.8
        million and $2.5 million of goodwill amortization,
        respectively.

    Net sales for the Terex Roadbuilding and Utility Products group
increased $65.7 million to $135.3 million from $69.6 million for the
third quarter of 2001, driven primarily by the acquisitions of CMI,
Advance Mixer, Pacific Utility, and EPAC. Excluding the impact of
acquisitions, sales decreased approximately 14% as revenues declined
in the Telelect and light construction businesses. SG&A expenses
increased to $16.5 million, or 12.2% of sales, compared to $8.4
million, or 12.1% of sales, for the third quarter of 2001, reflecting
the impact of the acquisitions. Excluding the impact of acquisitions,
operating expenses actually decreased to $7.1 million, or 11.9% of
sales. Operating profit for the quarter increased to $8.4 million, or
6.2% of sales, from $4.0 million, or 5.7% of sales, for the third
quarter of 2001. Excluding the impact of acquisitions, operating
profit was $7.8 million, or 13.0% of sales.
    "The Terex Roadbuilding and Utility Products group continues to
operate under difficult market conditions," commented Mr. DeFeo. "The
roadbuilding sector continues to be impacted by budget issues at the
federal, state, and local levels which have created uncertainty in the
market place and by a decline in non-residential construction
spending. The CMI business has been most directly impacted and has
seen revenues decline approximately 30% for the quarter and reported
an operating loss. Although we have taken significant costs out of
this business, the decline in revenues has more than offset any
benefit."
    Mr. DeFeo continued, "The light construction business continues to
face difficult times and declining revenues as it is impacted directly
by the buying patterns of the large rental houses. We are in the
process of consolidating facilities to reduce the cost structure of
this business. The Utility Products business is an area in which we
see opportunities for tremendous upside, both in gaining market share
as well as in cross selling other Terex products through this
distribution network."





Terex Aerial Work Platforms

                               Three months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                    -----                     -----
Net sales ............ $     20.6              $      ---
                        ==========              ==========
Gross profit (1)...... $      3.8   18.4%      $      ---
SG&A .................        1.6    7.8%             ---
                        ----------              ----------
Operating profit (1).. $      2.2   10.7%      $      ---
                        ==========              ==========
Backlog .............. $      7.9              $      ---


                                Nine months ended September 30,
                       -----------------------------------------------
                                    (dollars in millions)

                                 2002                    2001
                       ----------------------- -----------------------
                                    % of                      % of
                                    sales                     sales
                                   -------                   -------
Net sales ............ $     20.6              $      ---
                        ==========              ==========
Gross profit (1)...... $      3.8   18.4%      $      ---
SG&A .................        1.6    7.8%             ---
                        ----------              ----------
Operating profit (1).. $      2.2   10.7%      $      ---
                        ==========              ==========
Backlog .............. $      7.9              $      ---

    The Terex Aerial Work Platforms group is a new business segment
for Terex and represents the results of Genie Holdings, Inc. and its
subsidiaries since their acquisition by Terex on September 18, 2002.
This segment is headed by Bob Wilkerson, President-Terex Aerial Work
Platforms, who was also President of Genie prior to the acquisition.
    "Although Genie was only part of Terex for a short period in the
third quarter, Genie was able to contribute to the bottom line during
the quarter," commented Mr. Wilkerson. "We are aggressively
implementing our 100-day plan at Genie and are committed to deliver on
$25 million in cost savings. I remain excited about the opportunity of
combining Genie and Terex and taking advantage of the best the two
companies have to offer, whether by leveraging Terex's European
manufacturing capability for production of Genie products or
leveraging the direct sales force of Genie to sell and service other
Terex products."

    Capital Structure

    "Cash flow from operations during the third quarter was neutral
and was $8.3 million positive for the first nine months of 2002,"
commented Phil Widman, Chief Financial Officer. "As a percent of
annualized sales, net working capital is 36%, including the recent
acquisitions of Genie and Demag. We continue to focus on net working
capital reductions with a near-term goal to reduce net working capital
to a level of 30% of revenues."
    Net debt at the end of the third quarter increased to $1,297.1
million from $817.0 million at the end of the second quarter of 2002,
primarily reflecting the impact of the Demag and Genie acquisitions.
During the third quarter, the company entered into an amended and
restated credit facility with its bank-lending group. The revised
agreement provided $375 million of term debt maturing in June 2009, a
revolving credit facility of $300 million that is available through
June 2007, and $210 million of incremental term debt maturing in
December 2009. The proceeds from the refinancings were used to pay
down existing term debt, fund the acquisitions of Demag and Genie, and
for general corporate purposes. Terex also issued approximately 3.2
million shares of its common stock in conjunction with the Genie
acquisition. Net debt to book capitalization at the end of the third
quarter was 62.7%, compared to 57.5% at the end of 2001 and 63.8% at
the end of the third quarter of 2001.

    Outlook

    "At this point in the year we had expected to see some general
recovery in the economy," commented Mr. DeFeo. "Although I believe we
are at the bottom of the trough, there is not enough visibility to
predict the timing of any recovery. Given the current economic trends,
the sense that consumer confidence remains fragile and the fact that
customers continue to delay purchasing decisions, I do not expect any
improvement in our end markets in the near term. We anticipate overall
performance for the fourth quarter of 2002 to be similar to that of
the fourth quarter of 2001. We still remain cautiously optimistic
about 2003, as we expect a meaningful benefit from Demag and Genie in
the coming 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: Terex's business is highly cyclical and weak general
economic conditions may affect the sales of its products and its
financial results; the sensitivity of construction and mining activity
to interest rates, government spending and general economic
conditions; the ability to successfully integrate acquired businesses;
the retention of key management personnel; foreign currency
fluctuations; Terex's businesses are very competitive and may be
affected by pricing, product initiatives and other actions taken by
competitors; the effects of changes in laws and regulations; Terex's
business is international in nature and is subject to changes in
exchange rates between currencies, as well as international politics;
the ability of suppliers to timely supply Terex parts and components
at competitive prices; the financial condition of suppliers and
customers, and their continued access to capital; Terex's ability to
timely manufacture and deliver products to customers; Terex's
substantial amount of debt and its need to comply with restrictive
covenants contained in Terex's debt agreements; compliance with
applicable environmental laws and regulations; and other factors,
risks, uncertainties more specifically set forth in Terex's public
filings with the SEC. Actual events or the actual future results of
Terex may differ materially from any forward looking statement due to
those and other risks, uncertainties and significant factors. 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 pro forma 2001 annual revenues of $3.4
billion. Terex is involved in a broad range of construction,
infrastructure, recycling and mining-related capital equipment under
the brand names of Advance, American, Amida, Atlas, Bartell, Bendini,
Benford, Bid-Well, B.L. Pegson, Canica, Cedarapids, Cifali, CMI,
Coleman Engineering, Comedil, CPV, Demag, Fermec, Finlay, Franna,
Fuchs, Genie, Grayhound, Hi-Ranger, Italmacchine, Jaques,
Johnson-Ross, Koehring, Lectra Haul, Load King, Lorain, Marklift,
Matbro, Morrison, Muller, O&K, Payhauler, Peiner, Powerscreen, PPM,
Re-Tech, RO, Royer, Schaeff, Simplicity, Square Shooter, Telelect,
Terex, and Unit Rig. More information on Terex can be found at
www.terex.com.

                           Terex Corporation

      500 Post Road East, Suite 320, Westport, Connecticut 06880
     Telephone: (203) 222-7170, Fax: (203) 222-7976, www.terex.com





                  TEREX CORPORATION AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

                 (in millions, except per share data)
                              (unaudited)


                             Three Months             Nine Months
                          Ended September 30,     Ended September 30,
                        ----------------------  ----------------------
                           2002        2001        2002        2001
                        ----------  ----------  ----------  ----------

Net sales ............ $    674.1  $    453.7  $  1,946.3  $  1,370.4

Cost of goods sold ...      585.4       408.2     1,654.4     1,166.1
                        ----------  ----------  ----------  ----------

   Gross profit ......       88.7        45.5       291.9       204.3
Selling, general
 and administrative
 expenses ............       54.7        41.8       187.8       123.4
                        ----------  ----------  ----------  ----------

   Income from
    operations .......       34.0         3.7       104.1        80.9

Other income (expense):
   Interest income ...        1.8         2.8         4.7         6.6
   Interest expense ..      (22.3)      (21.9)      (66.9)      (66.1)
   Other income
    (expense) - net ..        3.2        (0.6)       (8.4)       (1.5)
                        ----------  ----------  ----------  ----------
Income (loss)
 from continuing
 operations before
 income taxes
 & extraordinary
 items ...............       16.7       (16.0)       33.5        19.9
Provision for
 income taxes ........       (5.3)        5.1       (10.7)       (6.4)
                        ----------  ----------  ----------  ----------
Income (loss)
 before extraordinary
 items ...............       11.4       (10.9)       22.8        13.5
Extraordinary loss
 on retirement
 of debt .............       (1.6)        ---        (1.6)       (2.3)

Cumulative effect of
 change in accounting
 principle ...........        ---         ---      (113.4)        ---
                        ----------  ----------  ----------  ----------

Net income (loss) .... $      9.8  $    (10.9) $    (92.2) $     11.2
                        ==========  ==========  ==========  ==========


EARNINGS PER SHARE: -
  Basic:
   Income (loss) from
    operations ....... $     0.26  $    (0.41) $     0.55  $     0.50
   Extraordinary loss
    on retirement
    of debt ..........      (0.04)       ---        (0.04)      (0.08)
   Cumulative effect
    of change in
    accounting
    principle ........       ---         ---        (2.71)       ---
                        ----------  ----------  ----------  ----------
        Net income
        (loss) ....... $     0.22  $    (0.41) $    (2.20) $     0.42
                        ==========  ==========  ==========  ==========
  Diluted:
   Income (loss) from
    operations ....... $     0.25  $    (0.41) $     0.54  $     0.48
   Extraordinary loss
    on retirement
    of debt ..........      (0.03)       ---        (0.04)      (0.08)
   Cumulative effect
    of change in
    accounting
    principle ........       ---         ---        (2.67)       ---
                        ----------  ----------  ----------  ----------
        Net income
        (loss) ....... $     0.22  $    (0.41) $    (2.17) $     0.40
                        ==========  ==========  ==========  ==========

Weighted average number
   of common and common
   equivalent shares
   outstanding in
   per share
   calculation
        Basic ........      44.5        26.9        41.8        26.9
        Diluted ......      45.2        26.9        42.5        27.7





                  TEREX CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEET

                    (In millions, except par value)
                              (Unaudited)

                                            September 30, December 31,
                                               2002           2001
                                           -------------  ------------

CURRENT ASSETS
   Cash and cash
     equivalents ........................  $    337.6     $    250.4
   Trade receivables ....................       639.0          351.1
   Inventories ..........................     1,133.7          704.8
   Deferred taxes .......................        49.0           23.7
   Other current assets .................       136.2           53.0
                                            -----------    ----------
                  Total Current Assets ..     2,295.5        1,383.0

LONG-TERM ASSETS
   Property, plant and equipment ........       265.3          173.9
   Goodwill .............................       604.5          620.1
   Deferred taxes .......................        94.6           75.4
   Other assets .........................       332.8          134.6
                                            -----------    ----------

TOTAL ASSETS ............................  $  3,592.7      $ 2,387.0
                                            ===========     ==========

CURRENT LIABILITIES
   Notes payable and current portion of
     long-term debt .....................  $     86.5      $    34.7
   Trade accounts payable ...............       527.9          291.0
   Accrued compensation and benefits ....        73.6           37.4
   Accrued warranties and
     product liability ..................        85.5           62.7
   Other current liabilities ............       300.8          201.3
                                            -----------    ----------
                  Total Current
                    Liabilities .........     1,074.3          627.1

NON CURRENT LIABILITIES
   Long-term debt, less current portion       1,548.2        1,020.7
   Other ................................       198.1          143.8

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Equity rights .........................         ---            0.5
   Common Stock, $0.01 par value --
      Authorized 150.0 shares;
      issued 48.5 and 37.5 shares at
      September 30, 2002
      and December 31, 2001, respectively         0.5            0.4
   Additional paid-in capital ...........       753.8          532.4
   Retained earnings ....................       107.7          199.9
   Accumulated other comprehensive income       (72.1)        (120.3)
   Less cost of shares of common stock
      in treasury (1.2 and 1.1 shares at
      September 30, 2002 and
      December 31, 2001, respectively) ..       (17.8)         (17.5)
                                            -----------    ----------
   Total Stockholders' Equity                   772.1          595.4
                                            -----------    ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $  3,592.7      $ 2,387.0
                                            ===========     ==========









                  TEREX CORPORATION AND SUBSIDIARIES

                 CONSOLIDATED STATEMENT OF CASH FLOWS
                             (in millions)
                              (unaudited)

                                                 Nine Months Ended
                                                   September 30,
                                           -------------  ------------
                                               2002           2001
                                           -------------  ------------

OPERATING ACTIVITIES
   Net income (loss).....................  $    (92.2)    $     11.2
   Adjustments to reconcile net income
    (loss) to cash provided by (used in)
    operating activities:
     Depreciation .......................        23.1           16.2
     Amortization........................         6.0           13.0
     Extraordinary loss on retirement
      of debt ...........................         1.6            2.3
     Gain on sale of fixed assets........        (0.3)          (1.3)
     Gain on foreign currency futures....        (3.8)           ---
     Restructuring charges...............         5.4           19.5
     Impairment charges and asset
       write downs ......................       140.8            ---
     Changes in operating assets and
      liabilities (net of effects of
      acquisitions):
       Trade receivables.................       (45.8)          13.8
       Inventories.......................       (61.4)         (56.4)
       Trade accounts payable............        84.8            5.4
       Other, net........................       (49.9)         (47.7)
                                           -------------  ------------
Net cash provided by (used in)
          operating activities ..........         8.3          (24.0)
                                           -------------  ------------

INVESTING ACTIVITIES
   Acquisition of businesses,
      net of cash acquired ..............      (440.7)         (10.4)
   Capital expenditures..................       (16.4)          (9.3)
   Proceeds from sale of assets..........         3.6            3.7
    Other................................         ---           (3.4)
                                           -------------  ------------
    Net cash used in investing activities      (453.5)         (19.4)
                                           -------------  ------------

FINANCING ACTIVITIES
   Proceeds from issuance of long-term
     debt, net of issuance costs ........       572.0          287.9
   Issuance of common stock..............       113.3            ---
   Principal repayments of long-term debt      (218.1)        (194.2)
   Net borrowings under revolving
    line of credit agreements ...........        60.4           29.2
   Other ................................        (1.3)          (1.0)
                                           -------------  ------------
         Net cash provided
         by financing activities ........       526.3          121.9
                                           -------------  ------------

EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS ............         6.1            0.9
                                           -------------  ------------
NET / INCREASE IN CASH AND
  CASH EQUIVALENTS ......................        87.2           79.4
CASH AND CASH EQUIVALENTS A
  AT BEGINNING OF PERIOD ................       250.4          181.4
                                           -------------  ------------

CASH AND CASH EQUIVALENTS
 AT END OF PERIOD .......................  $    337.6      $   260.8
                                            ===========     ==========
Contact:
Terex Corporation
Kevin O'Reilly, 203/222-5943

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