|UNITED STATES
        SECURITIES AND EXCHANGE COMMISSION 
        Washington, D.C. 20549
        Form 10-Q
|----------------------------------------------------------------------------------------------------------
|                                                                                                          

|                                                                                                                                                                  | (Mark One)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------
|                                                                                                                                                                 
|xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934
        For the quarterly period ended March 31, 2005
        OR
|                                                                                                                                                                  |           
|oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934
        For the transition period from __________ to __________
|                                                                                                                                                                 
|Commission file number 1-871
        BUCYRUS INTERNATIONAL, INC.                                                                                                 
|                                                                                                                                                                 
|(Exact Name of Registrant as Specified in its Charter)                                                                                                           

|                                                                  |  |                                      
|----------------------------------------------------------------- |  | -------------------------------------
|DELAWARE                                                          |  | 39-0188050                           
|                                                                  |  |                                      
|(State or Other Jurisdiction of
 Incorporation or Organization)   |  | (I.R.S. Employer
 Identification No.)
|                                                                  |  |                                      
|P. O. BOX 5001100 MILWAUKEE AVENUESOUTH MILWAUKEE, WISCONSIN53172
|                                                                 
|(Address of Principal Executive Offices)
      (Zip Code)        
|                                                                 
|(414) 768-4000                                                   
|                                                                 
|(Registrants Telephone Number, Including Area Code)             

|
|



|Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days. YesxNoo
Indicate by check mark whether
the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of
1934). YesoNox
Indicate the number of shares
outstanding of each of the issuers classes of common stock, as of the latest practicable date.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                     |                        
|------------------------------------ | -----------------------
|Class                                | Outstanding May 6, 2005
|                                     |                        
|                                    
|Class A Common Stock, $.01 par value | 20,325,096             

|
|



|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIES
INDEX
|--------------------------------------------------

|         |                                                                                                              |                                                                                                         |          | 
|-------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------- | -------- | 
|         |                                                                                                              |                                                                                                         | Page No.
|         |                                                                                                              |                                                                                                         |         
|PART I.  | FINANCIAL INFORMATION:                                                                                       |                                                                                                         |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 1 - Financial Statements (Unaudited)                                                                    |                                                                                                         |         
|         |                                                                                                              |                                                                                                         |          | 
|         |                                                                                                              | Consolidated Condensed Statements of Operations -Quarters ended March 31, 2005 and 2004                 | 4        | 
|         |                                                                                                              |                                                                                                         |          | 
|         |                                                                                                              | Consolidated Condensed Statements ofComprehensive Income (Loss) - Quarters endedMarch 31, 2005 and 2004 | 5        | 
|         |                                                                                                              |                                                                                                         |          | 
|         |                                                                                                              | Consolidated Condensed Balance Sheets -March 31, 2005 and December 31, 2004                             | 6-7      | 
|         |                                                                                                              |                                                                                                         |          | 
|         |                                                                                                              | Consolidated Condensed Statements of Cash Flows -Quarters ended March 31, 2005 and 2004                 | 8        | 
|         |                                                                                                              |                                                                                                         |          | 
|         |                                                                                                              | Notes to Consolidated Condensed Financial Statements                                                    | 9-14     | 
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 2 - Managements Discussion and Analysis of
              Financial Condition and Results of Operations | 15-24                                                                                                   |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 3 - Quantitative and Qualitative Disclosures
              About Market Risk                            | 25                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 4 - Controls and Procedures                                                                             | 26                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Forward-Looking Statements                                                                                   | 27                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|PART II. | OTHER INFORMATION                                                                                            |                                                                                                         |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 1 - Legal Proceedings                                                                                   | 28                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 2 - Unregistered Sales of Equity Securities
              and Use of Proceeds                           | 28                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 3 - Defaults Upon Senior Securities                                                                     | 28                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 4 - Submission of Matters to a Vote of
              Security Holders                                   | 28                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 5 - Other Information                                                                                   | 28                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Item 6 - Exhibits                                                                                            | 28                                                                                                      |         
|         |                                                                                                              |                                                                                                         |          | 
|         | Signature Page                                                                                               | 29                                                                                                      |         

|
|



|PART I
FINANCIAL INFORMATION
BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 1 - FINANCIAL STATEMENTSCONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                  

|                                             | Quarter Ended March 31, |           
|-------------------------------------------- | ----------------------- | ----------
|                                             |                         |           
|                                             | 2005                    |           
|                                             |                         |           
|                                             |                         |           
|Sales                                        | $                       | 105,521   
|Cost of products sold                        |                         | 76,495    
|                                             |                         |           
|                                             |                         |           
|                                             |                         |           
|                                             |                         |           
|Gross profit                                 |                         | 29,026    
|                                             |                         |           
|Selling, general and administrative expenses |                         | 12,305    
|Research and development expenses            |                         | 1,350     
|Amortization of intangible assets            |                         | 453       
|                                             |                         |           
|                                             |                         |           
|                                             |                         |           
|Operating earnings                           |                         | 14,918    
|                                             |                         |           
|Interest expense                             |                         | 1,252     
|Other expense  net                          |                         | 23        
|                                             |                         |           
|                                             |                         |           
|                                             |                         |           
|Earnings (loss) before income taxes          |                         | 13,643    
|Income tax expense                           |                         | 4,518     
|                                             |                         |           
|                                             |                         |           
|                                             |                         |           
|Net earnings (loss)                          | $                       | 9,125     
|                                             |                         |           
|                                             |                         |           
|                                             |                         |           
|Net earnings (loss) per share data           |                         |           
|Basic:                                       |                         |           
|Net earnings (loss) per share                | $                       | .45       
|Weighted average shares                      |                         | 20,068,110
|                                             |                         |           
|Diluted:                                     |                         |           
|Net earnings (loss) per share                | $                       | .44       
|Weighted average shares                      |                         | 20,782,311

|                                                         
|---------------------------------------------------------
|See notes to consolidated condensed financial statements.

|4
|-



|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 1 - FINANCIAL STATEMENTSCONSOLIDATED CONDENSED STATEMENTS OFCOMPREHENSIVE INCOME (LOSS) (Unaudited)(Dollars in Thousands)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                          

|                                         | Quarter Ended March 31, |       
|---------------------------------------- | ----------------------- | ------
|                                         |                         |       
|                                         | 2005                    |       
|                                         |                         |       
|                                         |                         |       
|Net earnings (loss)                      | $                       | 9,125 
|Other comprehensive loss-                |                         |       
|Foreign currency translation adjustments |                         | (3,773
|                                         |                         |       
|                                         |                         |       
|                                         |                         |       
|                                         |                         |       
|Comprehensive income (loss)              | $                       | 5,352 
|                                         |                         |       
|                                         |                         |       
|                                         |                         |       

|                                                        
|--------------------------------------------------------
|See notes to consolidated condensed financial statements

|5
|-



|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 1 - FINANCIAL STATEMENTSCONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)(Dollars in Thousands, Except Per Share Amounts)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                          

|                                                | March 31,
      2005 |         | December 31,
      2004 |  
|----------------------------------------------- | -------------------- | ------- | ----------------------- | -
|                                                |                      |         |                         |  
|                                                |                      |         |                         |  
|ASSETS                                          |                      |         |                         |  
|                                                |                      |         |                         |  
|CURRENT ASSETS:                                 |                      |         |                         |  
|Cash
      and cash equivalents                 | $                    | 33,893  |                         | $
|Receivables  net                               |                      | 78,338  |                         |  
|Inventories                                     |                      | 130,801 |                         |  
|Deferred
      income tax assets                |                      | 9,616   |                         |  
|Prepaid
      expenses and other current assets |                      | 7,716   |                         |  
|                                                |                      |         |                         |  
|                                                |                      |         |                         |  
|Total
      Current Assets                      |                      | 260,364 |                         |  
|                                                |                      |         |                         |  
|OTHER ASSETS:                                   |                      |         |                         |  
|Goodwill                                        |                      | 47,306  |                         |  
|Intangible
      assets  net                   |                      | 36,419  |                         |  
|Deferred
      income tax assets                |                      | 5,499   |                         |  
|Other
      assets                              |                      | 8,048   |                         |  
|                                                |                      |         |                         |  
|                                                |                      |         |                         |  
|                                                |                      | 97,272  |                         |  
|PROPERTY,
      PLANT AND EQUIPMENT:            |                      |         |                         |  
|Cost                                            |                      | 121,703 |                         |  
|Less accumulated depreciation                   |                      | (68,932 | )                       |  
|                                                |                      |         |                         |  
|                                                |                      |         |                         |  
|                                                |                      | 52,771  |                         |  
|                                                |                      |         |                         |  
|                                                | $                    | 410,407 |                         | $
|                                                |                      |         |                         |  

|6
|-



|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 1 - FINANCIAL STATEMENTSCONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (Continued)(Dollars in Thousands, Except Per Share Amounts)
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                      

|                                                                                                                                                                  | March 31,
      2005 |         | December 31,
      2004 |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | ------- | ----------------------- | -
|                                                                                                                                                                  |                      |         |                         |  
|                                                                                                                                                                 
|LIABILITIES
      AND COMMON SHAREHOLDERS INVESTMENT                                                                                                             |                      |         |                         |  
|                                                                                                                                                                 
|CURRENT LIABILITIES:                                                                                                                                              |                      |         |                         |  
|Accounts
      payable and accrued expenses                                                                                                                       | $                    | 64,438  |                         | $
|Liabilities
      to customers on uncompleted contracts and warranties                                                                                            |                      | 15,888  |                         |  
|Income
      taxes                                                                                                                                                |                      | 3,548   |                         |  
|Current
      maturities of long-term debt and other short-term obligations                                                                                       |                      | 23,184  |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|Total
      Current Liabilities                                                                                                                                   |                      | 107,058 |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|LONG-TERM
      LIABILITIES:                                                                                                                                      |                      |         |                         |  
|Postretirement
      benefits                                                                                                                                     |                      | 13,803  |                         |  
|Pension
      and other                                                                                                                                           |                      | 35,617  |                         |  
|                                                                                                                                                                 
|                                                                                                                                                                  |                      |         |                         |  
|                                                                                                                                                                  |                      | 49,420  |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|LONG-TERM DEBT,
      less current maturities                                                                                                                     |                      | 78,960  |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|COMMON SHAREHOLDERS
      INVESTMENT:                                                                                                                            |                      |         |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|Class A common
      stock  par value $0.01per share, authorized 41,000,000
          shares, issued 20,270,895 shares and 20,095,977 shares,
      respectively |                      | 203     |                         |  
|Additional
      paid-in capital                                                                                                                                  |                      | 293,583 |                         |  
|Unearned restricted
      stock compensation                                                                                                                      |                      | (626    | )                       |  
|Treasury stock
       72,400 shares, at cost                                                                                                                     |                      | (851    | )                       |  
|Accumulated
      deficit                                                                                                                                         |                      | (91,876 | )                       |  
|Accumulated
      other comprehensive loss                                                                                                                        |                      | (25,464 | )                       |  
|                                                                                                                                                                  |                      |         |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|                                                                                                                                                                  |                      | 174,969 |                         |  
|                                                                                                                                                                  |                      |         |                         |  
|                                                                                                                                                                  | $                    | 410,407 |                         | $
|                                                                                                                                                                  |                      |         |                         |  

|                                                         
|---------------------------------------------------------
|See notes to consolidated condensed financial statements.

|7
|-



|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 1 - FINANCIAL STATEMENTSCONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)(Dollars in Thousands)
|----------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                          

|                                                           | Quarter Ended March 31, |       
|---------------------------------------------------------- | ----------------------- | ------
|                                                           |                         |       
|                                                           | 2005                    |       
|                                                           |                         |       
|                                                           |                         |       
|Net Cash Provided By Operating Activities                  | $                       | 15,253
|                                                           |                         |       
|                                                           |                         |       
|Cash Flows From Investing Activities                       |                         |       
|Increase in restricted funds on deposit                    |                         | (5    
|Purchases of property, plant and equipment                 |                         | (2,643
|Proceeds from sale of property, plant
  and equipment      |                         | 47    
|                                                           |                         |       
|                                                           |                         |       
|Net cash used in investing activities                      |                         | (2,601
|                                                           |                         |       
|Cash Flows From Financing Activities                       |                         |       
|Repayment of senior secured term loan                      |                         | (1,250
|Net repayments of revolving credit facilities              |                         |      
|Net increase in long-term
  debt and other bank borrowings |                         | 143   
|Payment of refinancing expenses                            |                         | (19   
|Proceeds from issuance of common stock                     |                         | 3,093 
|Dividends paid                                             |                         | (1,151
|                                                           |                         |       
|                                                          
|Net cash provided by (used in) financing activities        |                         | 816   
|                                                           |                         |       
|                                                           |                         |       
|Effect of exchange rate changes on cash                    |                         | (192  
|                                                           |                         |       
|                                                           |                         |       
|Net increase (decrease) in cash and cash equivalents       |                         | 13,276
|Cash and cash equivalents at beginning of period           |                         | 20,617
|                                                           |                         |       
|                                                           |                         |       
|Cash and cash equivalents at end of period                 | $                       | 33,893
|                                                           |                         |       
|                                                           |                         |       
|Supplemental Disclosures of Cash Flow Information          |                         |       
|                                                           |                         |       
|                                                           | 2005                    |       
|                                                           |                         |       
|                                                           |                         |       
|Cash paid during the period for:                           |                         |       
|Interest                                                   | $                       | 1,130 
|Income taxes - net of refunds                              |                         | 1,999 

|                                                         
|---------------------------------------------------------
|See notes to consolidated condensed financial statements.

|8
|-



|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 1 - FINANCIAL STATEMENTSNOTES
TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited)
|-----------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                         

|1. | In the opinion of Bucyrus International, Inc. (the Company), the consolidated condensed
  financial statements contain all adjustments (consisting only of normal recurring accruals) necessary
  to present fairly the financial results for the interim periods. Certain items are included in these
  statements based on estimates for the entire year. Actual results in future periods may differ from
  the estimates. The Companys operations are classified as one operating segment.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|2. | Certain notes and other information have been condensed or omitted from these interim consolidated
  condensed financial statements. Therefore, these statements should be read in conjunction with the
  Companys 2004 Annual Report to Shareholders and Annual Report on Form 10-K filed with the Securities
  and Exchange Commission on March 21, 2005.                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|3. | Inventories consist of the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                            

|
|

| |                               | March 31,
      2005   |         | December 31,
      2004 |  
| | ----------------------------- | ---------------------- | ------- | ----------------------- | -
| |                               |                        |         |                         |  
| |                               | (Dollars in Thousands) |        
| |                               |                        |         |                         |  
| | Raw materials and parts       | $                      | 27,146  |                         | $
| | Work in process               |                        | 18,263  |                         |  
| | Finished products             |                        |         |                         |  
| | (primarily replacement parts) |                        | 85,392  |                         |  
| |                               |                        |        
| |                               |                        |         |                         |  
| |                               | $                      | 130,801 |                         | $
| |                               |                        |         |                         |  

|4. | The following is a reconciliation of the numerators and the denominators of the basic and diluted net
  earnings per share of common stock calculations for the quarter ended March 31, 2005:
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                              

| |  | (Dollars in Thousands, 
      Except Per Share Amounts) | 
| |  | ------------------------------------------------------- | 
| |  |                                                         | 

| |                                                       |  |   |            |  | 
| | ----------------------------------------------------- |  | - | ---------- |  | 
| | Net earnings                                          |  | $ | 9,125      |  | 
| |                                                       |  |   |            | 
| |                                                       |  |   |            |  | 
| | Weighted average shares outstanding                   |  |   | 20,068,110 |  | 
| |                                                       |  |   |            | 
| |                                                       |  |   |            |  | 
| | Basic net earnings per share                          |  | $ | .45        |  | 
| |                                                       |  |   |            | 
| |                                                       |  |   |            |  | 
| | Weighted average shares outstanding                   |  |   | 20,068,110 |  | 
| | Effect of dilutive stock options and restricted stock |  |   | 714,201    |  | 
| |                                                       |  |   |            | 
| |                                                       |  |   |            |  | 
| | Weighted average shares outstanding  diluted         |  |   | 20,782,311 |  | 
| |                                                       |  |   |            | 
| |                                                       |  |   |            |  | 
| | Diluted net earnings per share                        |  | $ | .44        |  | 
| |                                                       |  |   |            | 

|9
|-



|   | The weighted average shares outstanding used to compute the diluted loss per share for the quarter
  ended March 31, 2004 exclude outstanding options to purchase 1,018,000 shares of the Companys
  common stock. The options were excluded because their inclusion would have been antidilutive.                                                                                                                                                                                                                                               
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|5. | The Company accounts for stockbased compensation arrangements in accordance with Accounting Principles
  Board Opinion No. 25, Accounting for Stock Issued to Employees, as allowed by Statement
  of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation (SFAS
  123). The following table illustrates the effect on net earnings (loss) and net earnings (loss)
  per share as if the fair value-based method provided by SFAS 123 had been applied for all outstanding
  and unvested awards in each period:
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| |                                                                                                                                    | Quarter Ended March 31,                                |      
| | ---------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------ | -----
| |                                                                                                                                    |                                                        |      
| |                                                                                                                                    | 2005                                                   |      
| |                                                                                                                                    |                                                        |      
| |                                                                                                                                    | (Dollars in Thousands, Except
      Per Share Amounts) |      
| |                                                                                                                                    |                                                        |      
| | Reported net earnings (loss)                                                                                                       | $                                                      | 9,125
| | Add: Stock-based employee
  compensation expense recorded,
  net of related tax effects                                            |                                                        |     
| | Deduct: Total stock-based
  employee compensation expense
  determined under fair value based
  method, net of related tax effects |                                                        |     
| |                                                                                                                                    |                                                        |      
| |                                                                                                                                    |                                                        |      
| | Pro forma net earnings                                                                                                             | $                                                      | 9,125
| |                                                                                                                                    |                                                        |      
| |                                                                                                                                    |                                                        |      
| |                                                                                                                                    |                                                        |      
| | Net earnings (loss) per share of common stock:                                                                                     |                                                        |      
| | As reported                                                                                                                        |                                                        |      
| | Basic                                                                                                                              | $                                                      | .45  
| | Diluted                                                                                                                            |                                                        | .44  
| | Pro forma                                                                                                                          |                                                        |      
| | Basic                                                                                                                              |                                                        | .45  
| | Diluted                                                                                                                            |                                                        | .44  

| | Options to purchase 174,918 shares of the Companys Class A common stock were exercised during
  the quarter ended March 31, 2005.
| | ----------------------------------------------------------------------------------------------------------------------------------

|10
|--



|6. | Intangible assets consist of the following:
|-- | -------------------------------------------
|   |                                            

| |                                | March 31, 2005                    |        | December 31, 2004              |  
| | ------------------------------ | --------------------------------- | ------ | ------------------------------ | -
| |                                |                                   |        |                                |  
| |                                | Gross
      Carrying
      Amount |        | Accumulated
      Amortization |  
| |                                |                                   |        |                                |  
| |                                | (Dollars in Thousands)            |       
| | Amortized intangible assets:   |                                   |        |                                |  
| | Engineering drawings           | $                                 | 25,500 |                                | $
| | Bill of material listings      |                                   | 2,856  |                                |  
| | Software                       |                                   | 2,288  |                                |  
| | Other                          |                                   | 783    |                                |  
|
| |                                |                                   |        |                                |  
| |                                | $                                 | 31,427 |                                | $
| |                                |                                   |        |                                |  
| | Unamortized intangible assets: |                                   |        |                                |  
| | Trademarks/Trade names         | $                                 | 12,436 |                                |  
| | Intangible pension asset       |                                   | 5,133  |                                |  
| |                                |                                   |        |                                |  
| |                                | $                                 | 17,569 |                                |  
| |                                |                                   |        |                                |  
| |                                |                                   |        |                                |  
| |                                |                                   |        |                                |  

| |                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The aggregate intangible amortization expense for the quarters ended March 31, 2005 and 2004 was
$.5 million and $.4 million, respectively. The estimated future amortization expense of intangible
assets as of March 31, 2005 is as follows:
| |                                                                                                                                                                                                                                               

| |                              | (Dollars in Thousands) |  
| | ---------------------------- | ---------------------- | -
| |                              |                        |  
| |                              |                        |  
| | 2005 (remaining nine months) |                        | $
| | 2006                         |                        |  
| | 2007                         |                        |  
| | 2008                         |                        |  
| | 2009                         |                        |  
| | 2010                         |                        |  
| | Future                       |                        |  
| |                              |                        |  
| |                              |                        | $
| |                              |                        |  

|
|

|7. | Environmental                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | The Companys operations and properties are subject to a broad range of federal, state, local
and foreign laws and regulations relating to environmental matters, including laws and regulations
governing discharges into the air and water, the handling and disposal of solid and hazardous substances
and wastes, and the remediation of contamination associated with releases of hazardous substances
at the Companys facilities and at off-site disposal locations. These laws are complex, change
frequently and have tended to become more stringent over time. Future events, such as compliance
with more stringent laws or regulations, more vigorous enforcement policies of regulatory agencies
or stricter or different interpretations of existing laws, could require additional expenditures
by the Company, which may be material.

|11
|--



| | Environmental problems have not interfered in any material respect with the Companys manufacturing
operations to date. The Company believes that its compliance with statutory requirements respecting
environmental quality will not materially affect its capital expenditures, earnings or competitive
position. The Company has an ongoing program to address any potential environmental problems.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                         
| | Product Warranty                                                                                                                                                                                                                                                                                                                                                                                        

| |                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Company recognizes the cost associated with its warranty policies on its products as revenue is
recognized. The amount recognized is based on historical experience. The following is a reconciliation
of the changes in accrued warranty costs for the quarters ended March 31, 2005 and 2004:
| |                                                                                                                                                                                                                                                                                                    

| |                      | Quarter Ended March 31, |       |     
| | -------------------- | ----------------------- | ----- | ----
| |                      |                         |       |     
| |                      | 2005                    |       | 2004
| |                      |                         |       |     
| |                      | (Dollars in Thousands)  |       |     
| |                      |                         |       |     
| | Balance at January 1 | $                       | 5,452 |     
| | Provision            |                         | 538   |     
| | Charges              |                         | (537  | )   
| |                      |                         |       |     
| |                      |                         |       |     
| | Balance at March 31  | $                       | 5,453 |     
| |                      |                         |       |     

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Product Liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | The Company is normally subject to numerous product liability claims, many of which relate to products
no longer manufactured by the Company or its subsidiaries, and other claims arising in the ordinary
course of business. The Company has insurance covering most of these claims, subject to varying deductibles
up to $3.0 million, and has various limits of liability depending on the insurance policy year in
question. It is the view of management that the final resolution of these claims and other similar
claims which are likely to arise in the future will not individually or in the aggregate have a material
effect on the Companys financial position, results of operations or cash flows, although no
assurance to that effect can be given.

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Asbestos Liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | The Company has been named as a co-defendant in approximately 300 personal injury liability cases alleging
  damages due to exposure to asbestos and other substances, involving approximately 1,490 plaintiffs.
  The cases are pending in courts in nine states. In all of these cases, insurance carriers have accepted
  or are expected to accept defense. These cases are in various pre-trial stages. The Company does
  not believe that costs associated with these matters will have a material effect on its financial
  position, results of operations or cash flows, although no assurance to that effect can be given.

|12
|--



|   | Other Litigation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | A wholly owned subsidiary of the Company is a defendant in a suit pending in the United States District
  Court for the Western District of Pennsylvania, brought on June 15, 2002, relating to an incident
  in which a dragline operated by an employee of a Company subsidiary tipped over. The owner of the
  dragline has sued an unaffiliated third party on a negligence theory for property damages and business
  interruption losses in a range of approximately $25.0 million to $27.0 million. The unrelated third
  party has brought a third-party action against the Companys subsidiary. The Companys
  insurance carriers are defending the claim, but have not conceded that the relevant policies cover
  the claim. At this time discovery is ongoing and it is not possible to evaluate the outcome of the
  claim nor the range of potential loss, if any.                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | A wholly owned Australian subsidiary of the Company is a defendant in a suit pending in the Supreme
  Court of Queensland in Australia, brought on May 5, 2002, relating to a contractual claim. The plaintiff,
  pursuant to a contract with the Companys subsidiary, agreed to erect a dragline sold by the
  Company to a customer for use at its mine site. The plaintiff asserts various contractual claims
  related to breach of contract damages and other remedies for approximately AUS $3.6 million related
  to its claim that it is owed amounts for services rendered under the contract. The Companys
  subsidiary has asserted counterclaims against the plaintiff in connection with certain aspects of
  the work performed. This matter is anticipated to go to trial in mid-2005. The Company has established
  a reserve for its estimate of the resolution of this matter.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|8. | Statement of Financial Accounting Standards No. 130, Reporting Comprehensive Income, requires
  the reporting of comprehensive income (loss) in addition to net income (loss) from operations. Comprehensive
  income (loss) is a more inclusive financial reporting method that includes disclosure of financial
  information that historically has not been recognized in the calculation of net income (loss). The
  Company reports comprehensive income (loss) and accumulated other comprehensive loss which includes
  net loss, foreign currency translation adjustments and minimum pension liability adjustments. Information
  on accumulated other comprehensive loss is as follows:                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| |                                        | Cumulative 
      Translation
      Adjustments |        | Minimum 
      Pension 
      Liability 
      Adjustments |   | Accumulated 
      Other 
      Comprehensive
      Loss |  
| | -------------------------------------- | ----------------------------------------------- | ------ | ---------------------------------------------------------- | - | -------------------------------------------------------- | -
| |                                        |                                                 |        |                                                            |   |                                                          |  
| |                                        | (Dollars in Thousands)                          |       
| |                                        |                                                 |        |                                                           
| |                                        |                                                 |       
| | Balance at December 31, 2004           | $                                               | (5,307 | )                                                          | $ | (16,384                                                  | )
| |                                        |                                                 |        |                                                           
| | Changes - Quarter ended March 31, 2005 |                                                 | (3,773 | )                                                          |   |                                                         |  
| |                                        |                                                 |        |                                                           
| |                                        |                                                 |        |                                                            |   |                                                          |  
| | Balance at March 31, 2005              | $                                               | (9,080 | )                                                          | $ | (16,384                                                  | )
| |                                        |                                                 |        |                                                           
| |                                        |                                                 |        |                                                            |   |                                                          |  

|9. | The Company has several pension and retirement plans covering substantially all of its employees in
  the United States. The Company also provides certain health care benefits to age 65 and life insurance
  benefits for certain eligible retired United States employees.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13
|--



| | The components of net periodic pension cost consisted of the following:
| | -----------------------------------------------------------------------

|
|

| |                                    | Quarter Ended March 31, |       
| | ---------------------------------- | ----------------------- | ------
| |                                    |                         |       
| |                                    | 2005                    |       
| |                                    |                         |       
| |                                    | (Dollars in Thousands)  |       
| |                                    |                         |       
| | Service cost                       | $                       | 552   
| | Interest cost                      |                         | 1,310 
| | Expected return on plan assets     |                         | (1,116
| | Amortization of prior service cost |                         | 52    
| | Amortization of actuarial loss     |                         | 402   
|
| |                                    |                         |       
| | Net cost                           | $                       | 1,200 
| |                                    |                         |       

| | The components of other net periodic postretirement benefits cost (health care and life insurance)
  consisted of the following:
| | --------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                 

| |                                    | Quarter Ended March 31, |    
| | ---------------------------------- | ----------------------- | ---
| |                                    |                         |    
| |                                    | 2005                    |    
| |                                    |                         |    
| |                                    | (Dollars in Thousands)  |    
| |                                    |                         |    
| | Service cost                       | $                       | 210
| | Interest cost                      |                         | 311
| | Amortization of prior service cost |                         | (60
| | Amortization of actuarial loss     |                         | 91 
| |                                    |                         |    
| |                                    |                         |    
| | Net cost                           | $                       | 552
| |                                    |                         |    

|    | During the first quarter of 2005, the Company contributed approximately $.2 million to its pension
  plans and $.3 million for the payment of benefits from its postretirement benefit plan. The Company
  presently anticipates contributing an additional $2.6 million to its pension plans and $1.5 million
  for the payment of benefits from its postretirement benefit plan during the remainder of 2005.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|10. | On April 1, 2005, the Company made a voluntary prepayment of $16.0 million on the outstanding balance
  of its senior secured term loan. This additional amount is classified as current maturities of long-term
  debt in the Consolidated Condensed Balance Sheet at March 31, 2005.                                                                                                                         

|14
|--



|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 2 - MANAGEMENTS DISCUSSION AND ANALYSIS OFFINANCIAL CONDITION AND RESULTS OF OPERATIONS
Overview
Business
The Company designs, manufactures
and markets large excavation machinery used for surface mining, and provides comprehensive aftermarket
services, supplying replacement parts and offering maintenance and repair contracts and services
for these machines. The Company manufactures its original equipment (OEM) products and
the majority of aftermarket parts at its facility in South Milwaukee, Wisconsin. The Companys
principal OEM products are draglines, electric mining shovels and rotary blasthole drills, which
are used primarily by customers who mine copper, coal, oil sands and iron ore throughout the world.
In addition, the Company provides aftermarket services in mining centers throughout the world, including
Argentina, Australia, Brazil, Canada, Chile, China, India, Peru, South Africa and the United States.
The largest markets for mining equipment have historically been in the Australia, Canada, South Africa,
South America and the United States. In the future, Canada, China and India are expected to be increasingly
important markets.
The market for OEM machines
is closely correlated with customer expectations of sustained strength in prices of surface mined
commodities. Growth in demand for these commodities is a function of, among other things, economic
activity, population increases and continuing improvements in standards of living in many areas of
the world. In 2002, the market prices of many surface-mined commodities were generally weak. In 2003
and 2004, market prices for copper, coal, iron ore and oil increased. Factors that could support
sustained demand for these key commodities in 2005 and future years include continued economic growth
in China, India and the developing world, and renewed economic strength in industrialized countries.
The Companys aftermarket
parts and service operations, which have accounted for approximately 70% of sales over the past ten
years, tend to be more consistent than OEM machine sales; however, recent pronounced strength in
commodity markets has positively affected aftermarket sales. The Companys complex machines
are typically kept in continuous operation from 15 to 40 years, requiring regular maintenance and
repair throughout their productive lives. The size of the Companys installed base of surface
mining equipment and its ability to provide on-time delivery of reliable parts and prompt service
are important drivers of aftermarket sales.
The Company continues to forecast
increased sales activity for both aftermarket parts sales and OEM machine sales relative to prior
periods of weaker OEM sales. The Company maintains ongoing efforts to improve efficiency and contain
costs and continually evaluates all opportunities for reductions to operating costs. While the Company
has recorded restructuring charges in recent years, it does not anticipate significant restructuring
charges in the current year. Recent strong order volume has caused the Company to hire new employees,
and additional hiring is expected. As sustained order strength continues, the Company is taking steps
to increase its manufacturing capacity. During the first quarter of 2005, the Company entered into
an agreement to lease a facility to be used for expansion of the Companys manufacturing operations.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15
|--



|A substantial portion of the
Companys sales and operating earnings is attributable to operations located outside the United
States. The Company generally sells its OEM machines, including those sold directly to foreign customers,
and most of its aftermarket parts in United States dollars. A portion of the Companys aftermarket
parts sales are also denominated in the local currencies of Australia, Brazil, Canada, Chile, South
Africa and the United Kingdom. Aftermarket services are paid for primarily in local currency which
is naturally hedged by the Companys payment of local labor in local currency. In the aggregate,
approximately 70% of the Companys 2004 sales were priced in United States dollars.
Over the past three years,
the Company increased gross profits by improving manufacturing overhead variances, achieving productivity
gains and growing its high margin aftermarket parts and services business.
Following is a discussion of
key measures which contributed to the Companys operating results.
Key Measures
Commodity Prices
Demand for the Companys
OEM machines is driven in large part by the prices of certain commodities, such as copper, coal,
oil and iron ore. The prices of these commodities have risen in recent periods. The following
table shows selected commodity prices as of March 2005 and as of December 2004, 2003 and 2002:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

|                                        | March
    2005 |      | December |     
|--------------------------------------- | -------------- | ---- | -------- | ----
|                                       
|2004                                    |                | 2003 |          | 2002
|                                        |                |      |          |     
|                                        |                |      |          |     
|                                       
|Copper $/lb.(1)                         |                | $    | 1.53     |     
|Japanese coking coal $/tonne(2) (3)     |                |      | N/A      |     
|                                        |                |      |          |     
|Asian steam coal marker $/tonne(3) (4)  |                | $    | 66.37    |     
|Heavy oil $/barrel(3)(5)                |                | $    | 27.28    |     
|South American iron ore $/tonne (3) (6) |                | $    | 65.00    |     

|__________
|----------

|(1) | Source: London Metal Exchange.                                                                                                                                                                                                
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                               
|(2) | Source: The Institute for Energy Economics, Japan. As of the date of this filing, this information
  was not available. The indicative price for February 2005 was $65.21.                                                    
|    |                                                                                                                                                                                                                               
|(3) | The price for this commodity is not determinable by reference to a commodity exchange. The referenced
  source provides indicative contract prices which the Company believes are representative of prevailing
  price trends.

|
|

|(4) | Source: McCloskey Coal News.                                                                                                                                                                                                                                                                                                                                            
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                         
|(5) | Source: Sproule Associates, Ltd. The prices quoted are for Hardisty (Canada) Heavy Crude Oil and were
  converted from Canadian to United States dollars based on the average prevailing exchange rate for
  the applicable month. During December 2004, the price was temporarily reduced because an oil refinery
  was not operating and oil reserves were increasing.
|    |                                                                                                                                                                                                                                                                                                                                                                         
|(6) | Source: Skillings Mining Review.                                                                                                                                                                                                                                                                                                                                        

|16
|--



|On-Time Delivery and Lead Times
Due to the high fixed cost
structure of the Companys customers, it is critical that they avoid equipment downtime. On-time
delivery and reduced lead time of aftermarket parts and services allow customers to reduce downtime
and are therefore key measures of customer service, and the Company believes they are fundamental
drivers of aftermarket customer demand. The Companys on-time delivery percentage in the aftermarket,
based on achieved promised delivery dates to customers, was 94% for the year 2004 and 93% for the
first quarter of 2005. Lead times for deliveries of aftermarket parts were approximately the same
in the first quarter of 2005 as compared to the year 2004, although some suppliers are now increasing
lead times for materials which may affect parts delivery lead times in the future.
The Company increased on-time
deliveries and shortened lead times in recent years by focusing on development of key shop floor
metrics, improved communication between sales, manufacturing and shipping, daily or weekly meetings
to resolve issues, changing of shipment methods and the hiring of an additional supervisory person
dedicated to on-time delivery. The information to accomplish much of these improvements is now available
from the Companys enterprise resource planning (ERP) system.
Productivity
Sales per full time equivalent
employee is a measure of the Companys operational efficiency. Sales per full time equivalent
employee were $.2 million for the first quarters of 2005 and 2004. The Company has experienced productivity
increases in recent years, primarily due to the application of worldwide sales and inventory ERP
systems and personnel upgrades which, collectively, allowed sales to grow with minimal changes in
headcount.
Warranty Claims
Product quality is another
key driver of customer satisfaction and, as a result, sales. Management uses warranty claims as a
percentage of total sales as one objective benchmark to evaluate product quality. During the year
2004 and the first quarter of 2005, warranty claims as a percentage of total sales were less than
1%.
Backlog
Backlog is a tool which allows
management to forecast sales and production requirements. Due to the high cost of some OEM products,
backlog is subject to volatility, particularly over relatively short periods. A portion of the Companys
backlog is related to multi-year contracts that will generate revenue in future years. The following
table shows backlog at March 31, 2005 and December 31, 2004 as well as the portion of backlog
which is or was expected to be recognized within twelve months of these dates:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| |                | March 31,
      2005   |         | December 31,
      2004 |   |        
| | -------------- | ---------------------- | ------- | ----------------------- | - | -------
| |                |                        |         |                         |   |        
| |                | (Dollars in Thousands) |         |                        
| |                |                        |         |                        
| | Next 12 months | $                      | 288,436 |                         | $ | 231,455
| | Total          |                        | 505,446 |                         |   | 436,317

|17
|--



|Inventory
Inventory is one of the Companys
significant assets. As of March 31, 2005, the Company had $130.8 million in inventory. Inventory
turned at a rate of approximately 3.0 times in 2004 and in the first quarter of 2005. Inventory turns
is calculated based on cost of sales and the average inventory balance during the prior twelve months.
The Company believes that it has appropriately recorded at the lower of cost or market any slow moving
or obsolete inventory in its financial statements. The factors that could reduce the carrying value
of the Companys inventory include reduced demand for aftermarket parts due to decreased sales
volumes attributable to new or improved technology or customers discontinuing the use of the Companys
older model machines, which could render inventory obsolete or excess. With the exception of the
normal inventory obsolescence provision recorded in the ordinary course of business, the Company
does not anticipate recording any significant inventory impairments.
Results of Operations
Quarter Ended March 31, 2005
Compared to Quarter Ended March 31, 2004
Sales
Sales for the first quarter
of 2005 were $105.5 million compared with $97.1 million for the first quarter of 2004. Sales of aftermarket
parts and services for the first quarter of 2005 were $77.8 million, an increase of 12.1% from $69.4
million in the first quarter of 2004. The increase was primarily due to an increase in customer discretionary
spending and equipment utilization, primarily due to higher commodity prices. In addition, aftermarket
sales have increased due to the Companys initiatives and strategies to capture additional market
share. A significant portion of the increase in aftermarket sales for the first quarter of 2005 was
in the United States. Machine sales for the first quarter of 2005 were $27.7 million, which was equal
to machine sales for the first quarter of 2004. Approximately $2.1 million of the increase in sales
for the first quarter of 2005 was attributable to a weakening United States dollar, which primarily
impacted aftermarket sales (see Foreign Currency Fluctuations below).
Gross Profit
Gross profit for the first
quarter of 2005 was $29.0 million or 27.5% of sales compared with $19.7 million or 20.2% of sales
for the first quarter of 2004. The increase in gross profit was primarily due to an increased sales
volume and higher gross margins on both machines and aftermarket sales. Gross profit for 2005 and
2004 was reduced by $1.3 million of additional depreciation expense as a result of the purchase price
allocation to plant and equipment in connection with acquisitions involving the Company. Approximately
$.4 million of the increase in gross profit in the first quarter of 2005 was attributable to a weakening
United States dollar (see Foreign Currency Fluctuations below).
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18
|--



|Selling, General and Administrative Expenses
Selling, general and administrative
expenses for the first quarter of 2005 were $12.3 million or 11.7% of sales compared with $14.1 million
or 14.5% of sales for the first quarter of 2004. Selling, general and administrative expenses in
the first quarter of 2005 and 2004 included $45,000 and $4.1 million, respectively, related to non-cash
stock-based employee compensation. Selling expenses increased by $1.2 million in 2005 primarily due
to increased sales efforts and higher foreign costs as a result of the weakened U.S. dollar, but
remained relatively constant as a percentage of sales. Foreign currency transaction gains for the
first quarters of 2005 and 2004 were $.8 million and $.6 million, respectively.
Research and Development Expenses
Research and development expenses
for the first quarter of 2005 and 2004 were $1.4 million.
Amortization of Intangible Assets
Amortization of intangible
assets, consisting primarily of engineering drawings, bill of material listings and software, for
the first quarter of 2005 and 2004 was $.5 million and $.4 million, respectively.
Operating Earnings
Operating earnings for the
first quarter of 2005 were $14.9 million or 14.1% of sales, compared with $3.8 million or 3.9% of
sales for the first quarter of 2004. Operating earnings for the first quarter of 2005 increased from
2004 due to increased gross profit resulting from an increased sales volume and higher gross margins
on both machines and aftermarket sales. Operating earnings for the first quarter of 2004 was reduced
by $4.1 million of non-cash stock compensation expense.
Interest Expense
Interest expense for the first
quarter of 2005 was $1.3 million compared with $4.1 million for the first quarter of 2004. The decrease
in interest expense in 2005 was due to the refinancing of the Companys capital structure in
connection with its initial public offering which was completed on July 28, 2004.
Other Expense - Net
Other expense - net was $23,000
for the first quarter of 2005 compared with $.3 million for the first quarter of 2004. Debt issuance
cost amortization was $.2 million and $.4 million for the first quarter of 2005 and 2004, respectively.
These amounts include costs related to the Companys credit facilities (see Liquidity
and Capital Resources - Financing Cash Flows below).
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|19
|--



|Income Taxes
Income tax expense for the
first quarter of 2005 was $4.5 million compared to $1.4 million for the first quarter of 2004. Income
tax expense for the first quarter of 2004 consisted primarily of foreign taxes at applicable statutory
rates since taxable U.S. income was offset by federal net operating loss carryforwards. In 2005,
U.S. taxable income exceeded available net operating loss carry forwards and income tax expense was
recorded. Foreign taxes continue to be at applicable statutory rates. At March 31, 2005, the
Company had available approximately $14.3 million of federal net operating loss carryforwards.
Foreign Currency Fluctuations
The following table summarizes
the approximate effect of changes in foreign currency exchange rates on the Companys sales,
gross profit and operating earnings for the quarters ended March 31, 2005 and 2004, in each case
compared to the same quarter in the prior year:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                | Quarter Ended March 31, |       |     
| | ------------------------------ | ----------------------- | ----- | ----
| |                                |                         |       |     
| |                                | 2005                    |       | 2004
| |                                |                         |       |     
| |                                | (Dollars in Thousands)  |       |     
| |                                |                         |       |     
| | Increase in sales              | $                       | 2,065 |     
| | Increase in gross profit       |                         | 409   |     
| | Increase in operating earnings |                         | 151   |     

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|EBITDA
        Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarters ended March 31, 2005 and 2004 was $18.2 million and $7.0 million, respectively. EBITDA is presented (i) because the Company uses EBITDA to measure its liquidity and financial performance and (ii) because the Company believes EBITDA is frequently used by securities analysts, investors and other interested parties in evaluating the performance and enterprise value of companies in general, and in evaluating the liquidity of companies with significant debt service obligations and their ability to service their indebtedness.
The EBITDA calculation is not an alternative to operating earnings under accounting principles generally accepted in the United States of America (GAAP) as an indicator of operating performance or of cash flows as a measure of liquidity.
The following table reconciles Net Earnings (Loss) as shown in the Consolidated Condensed Statements of Operations to EBITDA and reconciles EBITDA to Net Cash Provided by Operating Activities as shown in the Consolidated Condensed Statements of Cash Flows:

|20
|--



| |                                                     | Quarter Ended March 31, |        |     
| | --------------------------------------------------- | ----------------------- | ------ | ----
| |                                                     |                         |        |     
| |                                                     | 2005                    |        | 2004
| |                                                     |                         |        |     
| |                                                     | (Dollars in Thousands)  |        |     
| |                                                     |                         |        |     
| | Net earnings (loss)                                 | $                       | 9,125  |     
| | Interest income                                     |                         | (209   | )   
| | Interest expense                                    |                         | 1,252  |     
| | Income taxes                                        |                         | 4,518  |     
| | Depreciation                                        |                         | 2,864  |     
| | Amortization (1)                                    |                         | 688    |     
| |                                                     |                         |        |     
| |                                                     |                         |        |     
| | EBITDA (2) (3)                                      |                         | 18,238 |     
| | Changes in assets and liabilities                   |                         | 2,249  |     
| | Non-cash stock compensation expense (4)             |                         | 45     |     
| | Loss on sale of fixed assets                        |                         | 282    |     
| | Interest income                                     |                         | 209    |     
| | Interest expense                                    |                         | (1,252 | )   
| | Income tax expense                                  |                         | (4,518 | )   
| |                                                     |                         |        |     
| |                                                     |                         |        |     
| | Net cash provided by operating activities           | $                       | 15,253 |     
| |                                                     |                         |        |     
| |                                                     |                         |        |     
| | Net cash used in investing activities               | $                       | (2,601 | )   
| |                                                     |                         |        |     
| |                                                     |                         |        |     
| | Net cash provided by (used in) financing activities | $                       | 816    |     
| |                                                     |                         |        |     
| |                                                     |                         |        |     

|(1) | Includes amortization of intangible assets and debt issuance costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(2) | This calculation varies from the calculation in the Companys senior secured credit facility.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(3) | EBITDA for the quarter ended March 31, 2004 is reduced by $.5 million of expenses pursuant to the management services agreement with American Industrial Partners (AIP) as well as fees of $44,000 paid to AIP or its affiliates and advisors for services performed for the Company outside the scope of the management services agreement. EBITDA is also reduced by restructuring charges (severance) for the quarters ended March 31, 2005 and 2004 of $13,000 and $54,000, respectively.                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|(4) | Non-cash stock compensation expense for the quarter ended March 31, 2004 represents the charge recorded related to stock options issued prior to the completion of the Companys initial public offering on July 28, 2004. At the time of the initial public offering, the plan required certain modifications to the determination of fair market value for these previously issued options. In accordance with EITF Issue No. 87-23, no further compensation expense was recorded subsequent to July 28, 2004 related to stock options issued under this plan prior to the Companys initial public offering. Under existing accounting standards, provision for compensation expense related to the 24,000 shares of restricted stock issued under the Bucyrus International, Inc.
2004 Equity Incentive Plan in September 2004 will be approximately $.2 million annually over the next four years.

|21
|--



|Liquidity and Capital Resources
Cash Requirements
During 2005, the Company anticipates
strong cash flows from operations due to continued strength in aftermarket parts sales as well as
increased demand for new machines. In expanding markets, customers are contractually obligated to
make progress payments under purchase contracts for machine orders. As a result, the Company does
not anticipate significant outside financing requirements to fund production of these machines and
does not believe that new machine sales will have a negative effect on its liquidity. If additional
borrowings are necessary during 2005, the Company believes it has sufficient capacity under its senior
secured credit facility.
The Companys capital
expenditures for the quarter ended March 31, 2005 were $2.6 million compared with $.7 million for
the quarter ended March 31, 2004. The Company expects a continued increase in capital expenditures
during the remainder of 2005 as it increases manufacturing capacity and upgrades and replaces manufacturing
equipment to support increased sales activity. The Company believes cash flows from operating activities
will be sufficient to fund capital expenditures in 2005.
At March 31, 2005, there were
$22.7 million of standby letters of credit outstanding under all Company bank facilities.
The Company believes that cash
flows from operations will be sufficient to fund its cash requirements for the next twelve months.
The Company also believes that cash flows from operations will be sufficient to repay any borrowings
under its senior secured credit facility.
On April 1, 2005, the Company
made a voluntary prepayment of $16.0 million on the outstanding balance of its senior secured term
loan.
The Company intends to pay
quarterly cash dividends of $0.575 per share (equal to $.23 year). A quarterly cash dividend of $1.2
million was declared on February 3, 2005 and paid on March 3, 2005.
Sources and Uses of Cash
The Company had $33.9 million
of cash and cash equivalents as of March 31, 2005. Of this amount, $5.9 million is located at
various foreign subsidiaries and is used for working capital purposes.
Operating Cash Flows
During the first quarter of
2005, the Company generated cash from operating activities of $15.3 million compared to $1.5 million
in the first quarter of 2004. The increase in cash flows from operating activities was driven primarily
by increased profitability.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|22
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|The Company recognizes revenues
on machine orders using the percentage-of-completion method. Accordingly, accounts receivable are
generated when revenue is recognized, which can be before the funds are collected or in some cases,
before the customer is billed. As of March 31, 2005, the Company had $78.3 million of accounts receivable
compared to $90.8 million of accounts receivable at December 31, 2004. Receivables at March
31, 2005 and December 31, 2004 included $18.9 million and $31.4 million, respectively, of revenues
from long-term contracts which were not billable at these dates. The decrease in receivables was
primarily due to increased revenues recognized in the fourth quarter of 2004 that were collected
in the first quarter of 2005.
Liabilities to Customers on
Uncompleted Contracts and Warranties
Customers generally make down
payments at the time of the order for a new machine as well as progress payments throughout the manufacturing
process. In accordance with Statement of Position No. 81-1, these payments are recorded as Liabilities
to Customers on Uncompleted Contracts and Warranties. The increase of $7.7 million from December
31, 2004 to March 31, 2005 was due to the receipt of customer payments on certain long-term machine
contracts for which the related revenue has yet to be recognized.
Financing Cash Flows
The Company has a senior secured
credit facility with Goldman Sachs Credit Partners L.P. and GMAC Commercial Finance, LLC. The senior
secured credit facility provides the Company with a senior secured term loan of $100.0 million and
a senior secured revolving credit facility of $50.0 million. The senior secured term loan is payable
in quarterly installments through its expiration on July 28, 2010, subject to earlier prepayment
provisions, and bears interest at the prime rate plus an applicable margin (1% to 1.25%) or LIBOR
plus an applicable margin (2% to 2.25%). The balance outstanding on the term loan at March 31, 2005
was $97.5 million at a weighted average interest rate of 4.9%. On April 1, 2005, the Company made
a voluntary prepayment of $16.0 million on the outstanding balance of the term loan. The senior secured
revolving credit facility expires on July 28, 2009 and bears interest at the prime rate plus
1.25% or LIBOR plus 2.25%. Borrowings under the revolving portion of the facility are subject to
a borrowing base formula based on the value of eligible receivables and inventory. At March 31, 2005,
there were no borrowings under the revolving portion of the facility and the amount available for
borrowings was $27.8 million. The Company must maintain a minimum amount available for borrowings
of $15.0 million after giving effect to the payment of any dividends.
The senior secured credit facility
contains covenants limiting the discretion of management with respect to key business matters and
places significant restrictions on, among other things, the Companys ability to incur additional
indebtedness, create liens or other encumbrances, make certain payments or investments, loans and
guarantees, and sell or otherwise dispose of assets and merge or consolidate with another entity.
All of the Companys domestic assets and the receivables and inventory of the Companys
Canadian subsidiary are pledged as collateral under the senior secured credit facility. In addition,
the outstanding capital stock of the Companys domestic subsidiaries as well as the majority
of the capital stock of the Companys foreign subsidiaries are pledged as collateral. The Company
is also required to maintain compliance with certain covenants, including financial ratios and minimum
levels of EBITDA (as defined). The Company was in compliance with these covenants as of March 31, 2005.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|23
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|Critical Accounting Policies and Estimates
See Critical Accounting Policies
and Estimates in the Managements Discussion and Analysis section of the Companys 2004
Annual Report to Shareholders. There have been no material changes to these policies.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|24
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|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|The Companys market risk
  is impacted by changes in interest rates and foreign currency exchange rates.
  Interest Rates
The Companys interest
rate exposure relates primarily to floating rate debt obligations in the United States. The Company
manages its borrowings under its senior secured credit facility through the selection of LIBOR based
borrowings or prime-rate based borrowings. If market conditions warrant, interest rate swaps may
be used to adjust interest rate exposures, although none have been used to date.
At March 31, 2005, a sensitivity
analysis was performed for the Companys floating rate debt obligations. Based on this sensitivity
analysis, the Company has determined that a 10% change in the Companys weighted average interest
rate at March 31, 2005 would have the effect of changing the Companys interest expense on an
annual basis by approximately $.4 million.
Foreign Currency
The Company sells new machines,
including those sold directly to foreign customers, and most of its aftermarket parts in United States
dollars. A limited amount of aftermarket parts sales are denominated in the local currencies of Australia,
Canada, Chile, South Africa, Brazil and the United Kingdom which subjects the Company to foreign
currency risk. Aftermarket sales and a portion of the labor costs associated with such activities
are denominated or paid in local currencies. As a result, a relatively strong United States dollar
could decrease the United States dollar equivalent of the Companys sales without a corresponding
decrease of the United States dollar value of certain related expenses. A relatively weak United
States dollar could have the opposite effect. The Company utilizes some foreign currency derivatives
to mitigate foreign exchange risk.
Currency controls, devaluations,
trade restrictions and other disruptions in the currency convertibility and in the market for currency
exchange could limit the Companys ability to timely convert sales earned abroad into United
States dollars, which could adversely affect the Companys ability to service its United States
dollar indebtedness, fund its United States dollar costs and finance capital expenditures and pay
dividends on its common stock.
Based on the derivative instruments
outstanding at March 31, 2005, a 10% change in foreign currency exchange rates would not have a material
effect on the Companys financial position, results of operations or cash flows.

|25
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|BUCYRUS INTERNATIONAL, INC. AND SUBSIDIARIESITEM 4 - CONTROLS AND PROCEDURES
As of the end of the period
covered by this Report, an evaluation was carried out under the supervision and with the participation
of the Companys management, including its Chief Executive Officer and President and its Chief
Financial Officer, Controller and Secretary, of the effectiveness of the design and operation of
the Companys disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities
Exchange Act of 1934 (the Exchange Act)). Based upon their evaluation of these disclosure
controls and procedures, the President and Chief Executive Officer and the Chief Financial Officer,
Controller and Secretary concluded that the disclosure controls and procedures were effective as
of the end of the quarter ended March 31, 2005 to ensure that material information relating to the
Company, including its consolidated subsidiaries, was made known to them by others within those entities,
particularly during the period in which this Report was being prepared.
There were no changes in the
Companys internal control over financial reporting (as such term is defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2005 that
have materially affected, or are reasonably likely to materially affect, the Companys internal
control over financial reporting.
It should be noted that any
system of controls, however well designed and operated, can provide only reasonable, and not absolute,
assurance that the objectives of the system are met. In addition, the design of any control system
is based in part upon certain assumptions about the likelihood of future events. Because of these
and other inherent limitations of control systems, there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions, regardless of how remote.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|26
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|FORWARD-LOOKING STATEMENTS
This
report contains statements that constitute forward looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These forward looking statements may be
identified by the use of predictive, future tense or forward looking terminology, such as believes,
anticipates, expects, estimates, intends, may,
will or similar terms. You are cautioned that any such forward looking statements are
not guarantees of future performance and involve significant risks and uncertainties, and that actual
results may differ materially from those contained in the forward looking statements as a result
of various factors, some of which are unknown. The factors that could adversely affect the Companys
actual results and performance include, without limitation:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

| |  | customers production capacity, stockpiles, and production and consumption rates of copper, coal, iron, oil and other ores and minerals;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                         
| |  | the cash flows of customers;                                                                                                            
| |   |                                                                                                                                         
| |  | consolidation among customers and suppliers;                                                                                            
| |   |                                                                                                                                         
| |  | work stoppages at customers, suppliers or providers of transportation;                                                                  
| |   |                                                                                                                                         
| |  | the timing, severity and duration of customer and industry buying cycles;                                                               
| |   |                                                                                                                                         
| |  | unforeseen patent, tax, product, environmental, employee health or benefit, or 
        contractual liabilities that affect the Company;
| |   |                                                                                                                                         
| |  | litigation;                                                                                                                             
| |   |                                                                                                                                         
| |  | nonrecurring restructuring and other special charges incurred by the Company;                                                           
| |   |                                                                                                                                         
| |  | changes in accounting or tax rules or regulations that affect the Company;                                                              
| |   |                                                                                                                                         
| |  | changes in the relative values of currencies;                                                                                           
| |   |                                                                                                                                         
| |  | the Companys leverage and debt service obligations;                                                                                    
| |   |                                                                                                                                         
| |  | the Companys success in recruiting and retaining key managers and employees;                                                           
| |   |                                                                                                                                         
| |  | labor costs and labor relations; and                                                                                                    
| |   |                                                                                                                                         
| |  | the Companys plant capacity.                                                                                                           

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The
review of important factors above is not exhaustive, and should be read in conjunction with the other
cautionary statements included in this report and in the Companys 2004 Annual Report to Shareholders
and Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 21, 2005.
All forward looking statements attributable to the Company are expressly qualified in their entirety
by the foregoing cautionary statements. The Company undertakes no obligation to publicly update or
revise any forward looking statements, whether as a result of new information, future events or otherwise.

|27
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|PART IIOTHER INFORMATION
|------------------------
|                        
|Item 1.                 
|                        
|                        
|                        
|Item 2.                 
|                        
|                        
|                        
|Item 3.                 
|                        
|                        
|                        
|Item 4.                 
|                        
|                        
|                        
|Item 5.                 
|                        
|                        
|                        
|Item 6.                 
|                        
|                        

|28
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|SIGNATURES
        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                           

|                      |                                                                                                             | 
|--------------------- | ----------------------------------------------------------------------------------------------------------- | 
|                      | BUCYRUS INTERNATIONAL, INC.
      (Registrant)                                                             
|                      |                                                                                                            
|                      |                                                                                                            
|Date     May 10, 2005 | /s/Craig R. Mackus                                                                                         
|                      |                                                                                                             | 
|                      | Craig R. Mackus
      Chief Financial Officer, Controller and Secretary 
      Principal Accounting Officer
|                      |                                                                                                            
|                      |                                                                                                            
|Date     May 10, 2005 | /s/Timothy W. Sullivan                                                                                     
|                      |                                                                                                             | 
|                      | Timothy W. Sullivan
      President and Chief Executive Officer                                            

|29
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|BUCYRUS INTERNATIONAL, INC.EXHIBIT INDEXTOQUARTERLY REPORT ON FORM 10-QFOR THE QUARTER ENDED MARCH 31, 2005
|-----------------------------------------------------------------------------------------------------------
|                                                                                                           

|Exhibit
    Number | Description                                                                                                                                          
|------------------ | -----------------------------------------------------------------------------------------------------------------------------------------------------
|                   |                                                                                                                                                      
|                   |                                                                                                                                                      
|31.1               | Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
  Act and Rules 13a-14(a)/15d-14(a).            
|                   |                                                                                                                                                      
|31.2               | Certification of Chief Financial Officer, Secretary and Controller pursuant to Section 302 of the Sarbanes-Oxley
  Act and Rules 13a-14(a)/15d-14(a).
|                   |                                                                                                                                                      
|32                 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
  Act of 2002.                            

|EI-1
|----