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WESTPORT, CT, October 23, 2013-- Terex Corporation (NYSE: TEX) today announced income from continuing operations of $89.3 million, or $0.77 per share for the third quarter of 2013, as compared to income from continuing operations of $30.2 million, or $0.27 per share for the third quarter of 2012. Income from continuing operations as adjusted in the third quarter of 2012 was $0.62 per share when excluding the costs associated with debt repayments and certain other items in the quarter. The glossary at the end of this press release contains further details regarding these items.


Net sales were $1,810.6 million in the third quarter of 2013, a decrease of 0.6% from $1,822.0 million in the third quarter of 2012. Income from operations was $140.9 million in the third quarter of 2013, an increase of $9.0 million when compared to income from operations of $131.9 million in the third quarter of 2012. Excluding the impact of certain items in the third quarter of 2012, income from operations as adjusted was approximately $140 million.

All results are for continuing operations, unless stated otherwise. All per share amounts are on a fully diluted basis. A comprehensive review of the quarterly financial performance is contained in the presentation that will accompany the Company’s earnings conference call.

“Our third quarter operating results were as we expected but with a better tax rate,” commented Ron DeFeo, Terex Chairman and Chief Executive Officer. “The current environment is mixed overall, and remains challenging to predict. We are seeing strength in early-cycle product categories where demand is mostly replacement driven. We continue to have strong performance from our Aerial Work Platforms (AWP) business and solid execution by our Materials Processing business. As expected, we achieved significantly better performance from our Material Handling & Port Solutions (MHPS) segment compared to the first half of this year. Our Cranes segment continues to experience soft market conditions and our Construction businesses remain challenged. Geographically, the global economy is best described as lacking a clear direction. North America remains the most stable market overall. Europe has seen slight improvements in certain products, mostly in our AWP segment, and the Middle East continues to provide growth. However, overall weakness in Europe and Australia have offset the growth we have experienced in other markets.”

Mr. DeFeo continued, “Our operating margins have remained consistent. However, we expected 2013 to be a year of significant sales growth, and this has not occurred. Our businesses that have a significant portion of products dependent on non-residential construction have not recovered as quickly as we had expected. Businesses that are less dependent on non-residential construction, such as our Port Solutions and AWP businesses, are seeing improving business conditions. This, along with our interaction with customers globally, is what provides a level of support that a broadbased recovery is more a matter of when it will happen, not if it will happen.”

Outlook: Mr. DeFeo added, “We now expect earnings per share to be between $2.05 and $2.25 per share, excluding restructuring and other unusual items, an increase from our previous guidance of $1.90 to $2.10 per share. The improvement in guidance is driven by an anticipated lower full year adjusted effective tax rate of approximately 33% which adds approximately $0.15 of earnings per share. With respect to our underlying business, earnings expectations remain unchanged although on slightly lower net sales of $7.3 billion to $7.5 billion.”

Tom Gelston
Vice President, Investor Relations
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