01.09.2004

JLG awarded $23 million refurbishment contract

JLG has been awarded a three-year, $21 million contract with the U.S. Army for the reconditioning of an estimated 350 All-Terrain Lifter Army System (“ATLAS”) telescopic handlers and 350 predecessor models. Returning from southwest Asia, all units will be reconditioned to bring them up to current unit standards. The initial phase of the contract includes a $1.1 million delivery order and will be performed at JLG’s dedicated military rebuild facility in McConnellsburg, PA.

“Consistent with our strategic initiatives to expand our after-market business, winning this contract broadens our portfolio in an important and growing customer segment,” commented David Peacock, Director, Military Programs of JLG. “Supporting our customers with after-market service and managing the life cycle of our products are key components of our longer term plan that present an opportunity to grow revenues from non new
machine sales.”

The ATLAS machines were built by Trak, a division of Omniquip, prior to its acquisition by JLG. The units have a maximum lift capacity of 10,000 lbs at four feet (4,500kgs @ 1.2metres) and a top speed of 23 mph. The latest contract for the Atlas machines estimated a take up of around 1,000 units over five years at a maximum unit price of $135,000 (£74,000).