Fourth Quarter and Year End 2011 Earnings Release Conference Call
February 16, 2012

Ron DeFeo - Terex Corporation - Chairman and Chief Executive Officer
Good morning ladies and gentlemen and thank you for your interest in Terex Corporation today.

On the call with me this morning is Phil Widman, our Senior Vice President and Chief Financial Officer, Kevin O'Reilly, Vice President Operational Finance and Tom Gelston, Vice President Investor Relations. Also participating on the call and available for your questions is most of the senior leadership of our business segments and geographies.

A replay of this call will be archived on the Company's website, under “Audio Archives” in the “Investor Relations” section of the website.

I will begin with some overall commentary and highlights. Phil will follow with a more detailed financial report, including some analysis of the improved performance achieved during the quarter, as well as a few schedules that will help explain certain expenses in the period. Lastly, I will review our outlook for 2012, including details on our individual segment performance expectations, as well as insight into management's overall operating focus and strategy for the year. Following that, as usual, we will open up the call for your questions. We will enforce the one question and a follow-up only rule.

For this call, we have prepared a presentation to guide you through our commentary that is available to download from our website. Let me begin by referring to the forward-looking statement on Page 2, which I encourage you to read and review, as well as our other disclosures available in our public documents.

Let me begin on page 3. We just completed a significant year in Terex's development, a year of investment and improvement. Investment in the high quality business of Demag Cranes AG, now our Material Handling & Port Solutions segment (MHPS), which adds a first class business to our portfolio. Improvement, in that, real progress was made as we streamlined operations, reduced the manufacturing footprint and started generating meaningful cash from earnings and working capital.

The cost structure realignment is expected to improve profitability going forward, most notably within the Cranes and Construction segments. We have taken pricing actions to recapture margin lost in 2011 due to material cost pressures, and to offset anticipated cost actions in 2012, most notably in the AWP and Construction segments.

The economic recovery is taking hold in many of Terex's major markets, with most markets healthier than a year ago. We do have some reservations about Europe, but the recovery in North America seems solid. In 2011 we recaptured growth in our core business with organic growth of 27% and overall net sales growth of 48% inclusive of acquisitions. However, for Terex in 2012, emphasis is clearly on margin improvement, cash generation and the integration of Demag Cranes AG. It is much less about growth.

Now I'd like to discuss the market environment by segment on Page 4. The AWP business continues to recover with North America leading the way. Business with the largest rental companies is strong and we are now seeing independent and smaller, regional players buying again. Our European AWP business has been a little better than we expected. In general, we have been successful implementing a 4.5% price increase effective with shipments on January 1, 2012. The overall backlog remains strong - double last year's level.

The Construction products market outlook is generally positive, but North American housing and roadbuilding markets will remain weak in 2012. We expect continued solid demand for our material handlers - mainly for the scrap steel market. The demand outlook for our artic and rigid truck business is expected to improve, and the compact construction business is slowly getting stronger. In general, a solid market where we can concentrate on margin and cash generation.


The following information was filed by Terex Corp (TEX) on Tuesday, February 21, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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