TEREX ANNOUNCES FOURTH QUARTER AND FULL YEAR 2014 RESULTS AND PROVIDES 2015 OUTLOOK

Terex Corporation announced income from continuing operations of $259.0 million, or $2.27 per share, on net sales of $7.3 billion for the full year 2014, as compared to income from continuing operations of $209.0 million, or $1.79 per share, on net sales of $7.1 billion for the full year 2013. Excluding the $0.49 per share tax benefit related to the ASV disposition and certain other items, income from continuing operations as adjusted for the full year 2014 was $268.5 million, or $2.35 per share, compared to $261.2 million, or $2.23 per share, in 2013. The Glossary at the end of this press release contains further details regarding these items and all per share amounts are on a fully diluted basis.

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For the fourth quarter of 2014 income from continuing operations was $79.9 million, or $0.71 per share, on net sales of $1.8 billion, compared to income from continuing operations of $84.8 million, or $0.72 per share, on net sales of $1.8 billion for the fourth quarter of 2013. Excluding the $0.49 per share tax benefit related to the ASV disposition and certain other items, income from continuing operations as adjusted was $80.3 million, or $0.72 per share, in 2014 compared to $76.8 million, or $0.65 per share, in 2013.

“Terex continued to improve in 2014 despite a more challenging operating environment than anticipated entering the year,” commented Ron DeFeo, Terex Chairman and CEO. “We have streamlined our business portfolio, reduced our cost structure, introduced innovative new products, and simplified operations. There is more work to do, but overall we are pleased with the progress we have made and the momentum of our internal improvement initiatives. Additionally in 2014, we repurchased 5.3 million shares, lowered borrowing costs and extended our debt maturity dates, as well as generated $329 million of free cash flow. Consequently, we have announced a new $200 million share repurchase authorization, as well as an increase in our dividend of 20%.”

“Operationally, performance was mixed during 2014, and the fourth quarter was no exception. Our Cranes and Materials Handling & Ports Solutions (MHPS) segments had meaningful adjusted operating profit increases in the fourth quarter, while our Aerial Work Platforms (AWP) segment was substantially below the prior year. During the fourth quarter of 2013, AWP performance was particularly strong as we focused on producing equipment during that traditionally softer demand period to capture incremental demand in the quarter, as well as level the production load on our factories. Conversely, in the fourth quarter of 2014, we curtailed production to align our product build schedules more closely with actual demand and machine configuration in our order book. Importantly, however, AWP backlog increased 137% when compared with the prior year, giving us confidence that 2015 will be another solid year for this segment.”

Mr. DeFeo continued, “For the full year, adjusted operating profit for the company as a whole was flat with 2013; however, the contribution varied by segment. Performance this year was led by adjusted operating profit improvements of $54 million and $23 million from MHPS and Construction, respectively. Cranes and AWP disappointed with adjusted operating profit performance of $35 million and $25 million below 2013, respectively. Cranes performance was negatively impacted by lower net sales and AWP by productivity, product mix and higher material costs. MP operating profit declined by $11 million during the year, driven by unfavorable mix and investments in growth initiatives. Lastly, we are pleased that our overall working

capital as a percentage of sales improved to 22.5% and ROIC for the year was 11.2% or 310 basis points higher than 2013.”

Outlook: The Company expects 2015 earnings per share between $2.00 and $2.30 (excluding restructuring and other unusual items) on net sales of between $6.2 billion and $6.6 billion. We anticipate currency and the ASV disposition will negatively affect net sales between $650 million and $750 million and EPS between $0.15 and $0.20 per share.

Mr. DeFeo commented, “Our improvement program targeting $202 million of incremental operating profit over the next few years is progressing as planned. We anticipate approximately $50 million of profit improvements in 2015 from these initiatives. Furthermore, tax and cash generation initiatives remain on track. Market uncertainty from oil price and currency volatility is a key contributor to our sales outlook. We will continue to focus on what we can influence and believe improved operating conditions will eventually return.”

Capital Structure: The Company’s liquidity at December 31, 2014 increased by approximately $184 million compared to September 30, 2014, for a total of $1,078 million, which comprised cash of $478 million and borrowing availability under the Company’s revolving credit facilities of $600 million. The increase was mainly due to an improvement in working capital, offset by the repurchase of Terex common stock during the quarter and capital expenditures. Debt, less cash and cash equivalents, decreased approximately $258 million to $1,311 million compared to December 31, 2013.

Kevin Bradley, Terex Senior Vice President and Chief Financial Officer, commented, “Our primary focus areas in 2014 included improving our capital structure and our financial efficiency. We made substantial progress in these areas, notably the improvements in our balance sheet. Aided by our focused working capital improvement activities, we were able to generate $329 million in free cash flow in 2014, meaningfully above our expectations. This, combined with our continued portfolio management, particularly in our Construction segment, enabled us to improve our liquidity by $342 million compared to December 2013. Moreover, we completed our stock repurchase program, purchasing $170 million of stock in 2014 and paying $0.20 per share in dividends to our shareholders.”

Taxes: The effective tax rate was negative 105.3% for the fourth quarter of 2014 and positive 12.7% for the full year, as compared to an effective tax rate of positive 21.0% for the fourth quarter of 2013 and positive 30.0% for the full year. The lower effective tax rate for the fourth quarter of 2014 was primarily due to tax benefits derived from divestitures and a more favorable geographic mix of earnings.

Working Capital: Working Capital as a percent of Trailing Three Month Annualized Net Sales was 22.5% at December 31, 2014, as compared to 24.8% at December 31, 2013.

Backlog: Backlog for orders deliverable during the next twelve months was approximately $2,001 million at December 31, 2014, an increase of approximately 17.4% from September 30, 2014 and an increase of approximately 9.5% from December 31, 2013. The majority of the year over year increase relates to timing differences in order patterns from large AWP rental customers, partially offset by decreases in MHPS due to significant shipments of port automation products in the fourth quarter of 2014 and the negative impact of foreign exchange rates. The Glossary contains further details regarding backlog.