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DIESELPROGRESS® EDITORIAL & SALES Michael J. Osenga ..........................................Publisher Michael J. Brezonick....................Associate Publisher/ Editor-In-Chief Dawn M. Geske....................................Executive Editor Amanda M. Klemp................................Associate Editor Katie Evans ..................................Advertising Manager Niki Trucksa ..................................Advertising Manager Sue M. Bollwahn ..........................Circulation Manager Melissa C. McNulty ......................................Copy Editor Joseph M. Kane ........................................Senior Editor D. Phillip Burnside....................................Senior Editor Sheila Gailloreto ........................................Senior Editor Brent D. Haight ....................................Associate Editor Kyle Kopplin ........................................Associate Editor Charles R. Yengst ........................Marketing Columnist Mark Clevenger ............................................Field Editor Bill Siuru........................................................Field Editor PUBLICATION STAFF Marisa J. Roberts..........................Production Manager Brenda L. Burbach ..................................Graphic Artist Carla D. Lemke ........................................Graphic Artist Amanda J. Ryan ......................................Graphic Artist Brenda L. Weisensel ..............................Graphic Artist SALES OFFICES PUBLICATION HEADQUARTERS 20855 Watertown Road Waukesha, WI 53186-1873, U.S.A. Telephone: 1-262-754-4100 Telefax: 1-262-754-4175 S TUT TGAR T Lisa Hochkofler ..................................Advertising Manager Gabriele Dinsel....................................Advertising Manager Niemöllerstr. 9 73760 Ostfildern, Germany Telephone: + 49 711 3416 74 0 Telefax: + 49 711 3416 74 74 LONDON Ian Cameron ................................Regional Manager/Editor Samantha Doran ................................Advertising Manager Riverbank House, Suite 610 1 Putney Bridge Approach London SW6 3JD, United Kingdom Telephone: + 44 20 3179 2979 Telefax: + 44 20 3179 2970 ITALY Roberta Prandi ............................Regional Manager/Editor Via Fitta 21A I - 38062 Arco, Italy Telephone: + 39 0464 2430891 Telefax: + 39 0464 244529 SCANDINAVIA Bo Svensson ......................Field Editor/Business Manager Dunderbacksvagen 20 612-46 Finspong, Sweden Telephone: + 46 70 2405369 Telefax: + 46 122 14787 TOK YO Akiyoshi Ojima ..........................................Branch Manager 51-16-301 Honmoku Sannotani, Naka-ku Yokohama, 231-0824, Japan Telephone: +81 45 624 3502 Telefax: +81 45 624 3503 HONG KONG S.H. Mok ......................................................Branch Manager Rm 1405, Kowloon Building 555 Nathan Road Kowloon, Hong Kong Telephone: +852 3118 7930 Telefax : +852 3110 3572

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MEMBER OF BPA WORLDWIDE® DIESEL PROGRESS® NORTH AMERICAN EDITION (ISSN 1091-370X) Volume 76 No. 2 — Published monthly by Diesel & Gas Turbine Publications, 20855 Watertown Road, Waukesha, WI 53186-1873, U.S.A. Subscription rates are $85.00 per year/$10.00 per issue. Periodicals postage paid at Waukesha, WI 53186-1873 and at additional mailing offices. Copyright 2010 DIESEL & GAS TURBINE PUBLICATIONS.Canadian Publication Mail Agreement 40035419. Return Undeliverable Canadian Addresses to: P.O. Box 456, Niagra Falls, ON L2E 6V2, Canada. E-mail: sbollwahn@dieselpub.com. POSTMASTER: Send address changes to: Diesel Progress North American Edition, 20855 Watertown Road, Suite 220, Waukesha, WI 53186-1873.

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Greetings From South Milwaukee TOP DEAD CENTER

Okay, this one took some guts. In an economic environment where survival, not deal making was the norm, Bucyrus International broke out of its niche as primarily a manufacturer of draglines, and with the stroke of a pen and a whole bunch of money, became a full line equip- ment manufacturer. The deal in question is Bucyrus’ pending $1.3 billion acquisition of Terex’s mining equipment business. With the deal, Bucyrus adds hydraulic mining excavators, electric drive mining trucks, track and rotary blasthole drills, the highwall miner, as well as relat- ed parts and aftermarket service businesses, including company-owned distribution. The deal may not have gotten the notice it deserved as it was announced on a Sunday, Dec. 20, when most were looking for last-minute Christmas presents, shov- eling snow or had already headed for the couch or the ski hill. Add it up, and all the deal does is double the size of Bucyrus. But it didn’t come cheaply. This wasn’t a bargain basement buy. They paid a healthy price for what was previously about 33% of Terex Corp. Granted, throughout the meltdown, mining has suffered less than most, especially compared to construction equipment. Nonetheless, this did not appear to be the best time to roll the dice and play Bet The Company. A $1.3 billion deal by a $2.6 billion company. Bold, audacious, gutsy. Yet, if successful, it is a move that could double Bucyrus' market in potential equip- ment sales. That opportunity doesn’t come around every day. And it came from an unlikely place — South Milwaukee, Wis. While known to most in the off-highway markets, Bucyrus was not generally mentioned among the top play- ers in machines that play in the dirt. The company had carved out a very nice and profitable niche for itself as a manu- facturer of draglines. It had done deals before, buying Marion Power Shovel in 1997, which reduced the world’s dragline manufacturers from three to two. In 2007 it spent $721 million to add the German longwall manufacturer DBT. But the Terex deal is a machine of a different color. Bucyrus now has to be includ- ed in any discussion of major manufacturers. This is now a company with about 10,000 employees and 100 locations and probably a $4 billion top line. Talk about leaving your comfort zone. And the timing of this can’t be understated. This was done at a time when most com- panies were still looking at how and where else they could cut. That’s the jaw-dropping part of the deal. Expansion in a time of retreat. “Got any ideas where we can spend $1.3 billion before Christmas,” was not a ques- tion being asked throughout the off-highway world. Apparently Terex’s mining group was “in play” judging by the number of “yeah, we were in on that” comments that came ex post facto. So maybe opportunity and vision collided at exactly the right time. Now the fascinating part of business begins. What happens from here? The bet is the next announcement will have a dateline of — Peoria, Ill. Game on. Finally. dp