30.10.2010

JLG up 58%

JLG has reported its full year results to the end of September, fourth quarter access and telehandler sales rose almost 58 percent on the same quarter last year to $385.8 million.

Total revenues for the quarter were $536.8 million which includes $151 million of military intercompany sales. With these included the increase was 62 percent.

Operating income for the quarter was $7.3 million compared to a loss of $49.1 million for the same quarter in 2009. The result would have been better, but includes $6.7 million of restructuring and rationalisation costs involved with moving Jerr Dan production into JLG’s production facilities.

Full year revenues were just over $3 billion – over 250 percent up on 2009, producing an operating income of $97.3 million compared to a loss in 2009 of $1.16 billion.

The company’s order book at the end of September was $197 million compared to 108.3 million a year ago and six percent up on the quarter.

JLG says that sales of new access equipment in North and South America experienced triple-digit percentage growth in the fourth quarter, although North American sales are still significantly lower than historical levels.

JLG is of course part of Oshkosh, which reported a record year, with revenues up 85 percent to $9.8 billion. Pre-tax profits were $1.2 billion, compared to a loss last year of $1.18 billion.

The strong improvement in profits and cash flow allowed the company to pay $736 million off of its debt load reducing it to $1.4 billion.

Robert Bohn, Oshkosh’s outgoing chief executive said: "We completed a record fiscal year on a high note with strong fourth quarter results," said "The strength of the Oshkosh franchise was evident as we delivered all-time records in fiscal 2010 for revenues, operating income and net income. This performance, coupled with our improved balance sheet as a result of our substantial debt repayment during fiscal 2010, puts us in a strong position as we prepare for the gradual economic recovery.

"As we enter fiscal 2011, we have a solid foundation with our defence business supported by a strong backlog. We also continue to see signs that lead us to believe that our non-defence businesses will generally deliver improved results in fiscal 2011”.

Vertikal Comment

No matter which way you look at it this is a very encouraging set of numbers for those of us in the access and telehandler markets as well as for JLG of course. The three largest self-propelled lift manufacturers have now all reported solid improvements in both revenues and profitability.

At this time in economic cycle each manufacturer has to be looking at its general strategies for the next five years. How each company ‘leaves the starting blocks’ once the recovery begins can be critical. Go off too fast - too soon and the false start can upset market share growth for years. Go too late and the same is true.

It is of course too early to tell at this stage who will come out best from the strong growth we are likely to see in the years ahead, however JLG is looking a good deal sharper at this point in the cycle than it has looked at the same stage in previous ones. The company has made further progress in its manufacturing efficiencies over the slowdown and is planning some significant new product launches at Conexpo in March.

Its announcement earlier this week of the spider lift deal with Hinowa and the launch of a quirky new boom lift at a European show, also suggests a business that is more open minded and that is ‘ready to rock and roll’.