EXHIBIT 12.1
TEREX CORPORATION
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(amounts in millions)
-------------------------------------------------------- Nine Months Ended
Year Ended December 31, September 30,
-----------------------
2002 2001 2000 1999 1998 2003 2002
---------- ---------- ----------- ---------- ---------- ----------- -----------
<s> <c> <c> <c> <c> <c> <c> <c>
Earnings
Income (loss) from continuing operations
before taxes and cumulative effect of
change in accounting principle.............$ (25.8) $ 24.6 $ 159.6 $ 98.4 $ 74.5 $ (25.7) $ 43.4
Adjustments:
Minority interest in losses of
consolidated subsidiaries................ --- --- --- --- --- --- ---
Undistributed (income) loss of less than
50% owned investments.................... --- --- --- --- --- --- ---
Distributions from less than 50% owned
investments.............................. --- --- --- --- --- --- ---
Fixed charges.............................. 108.0 94.8 106.2 88.4 52.4 90.4 76.6
-------- ---------- --------- ------- -------- -------- --------
Earnings..................................... 82.2 119.4 265.8 186.8 126.9 64.7 120.0
-------- ---------- --------- ------- -------- -------- --------
Combined fixed charges, including
preferred accretion
Interest expense, including debt discount
amortization............................... 92.9 86.7 99.8 82.8 47.2 74.8 65.9
Accretion of redeemable convertible
preferred stock............................. --- --- --- --- --- --- ---
Amortization of debt issuance costs.......... 4.8 3.8 3.5 2.6 2.1 3.9 3.2
Portion of rental expense representative of
interest factor (assumed to be 33%)........ 10.3 4.3 2.9 3.0 3.1 11.7 7.5
-------- ---------- --------- ------- -------- -------- --------
Fixed charges................................$ 108.0 $ 94.8 $ 106.2 $ 88.4 $ 52.4 $ 90.4 $ 76.6
-------- ---------- --------- ------- -------- -------- --------
Ratio of earnings to combined fixed charges.... ---(1) 1.3x 2.5x 2.1x 2.4x ---(1) 1.6x(2)
======== ========== ========= ======= ======== ======== ========
Amount of earnings deficiency for coverage of 25.8 --- $ 25.7(2) $ ---
combined fixed charges......................$ $ --- $ --- $ --- $
======== ========== ========= ======= ======== ======== ========
(1) Less than 1.0x
(2) The ratio of earnings to fixed charges for the nine months ended September
30, 2002 and 2003 presented above were calculated with certain Businesses
reported as discontinued operations (see "Recent Developments" in the prospectus
included in this Registration Statement). Had these Businesses been reported
within continuing operations, the ratio of earnings to fixed charges for the
nine months ended September 30, 2002 would have been 1.5x and for the nine
months ended September 30, 2003 fixed charges exceeded earnings by $22.9
million.
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