25.05.2005

JLG sales rise 52 percent

JLG has released its fiscal third quarter results, they show revenues for the nine months up by 52 percent on 2004 to $1.17 billion, very close to last years results for the full 12 months.

The company has more than doubled its sales revenues in two years. The quarterly result also places JLG well on target for $1.75 billion this year and $2 billion in its next fiscal year..

Operating income for the nine month period rose to $60 million a 38 percent increase on the same period last year. This represents a slightly lower percentage of revenues due to a fall in gross margins on a year to date basis. Gross margins did however show a strong recovery in the third quarter, rising to over 19 percent, Suggesting that the company has now passed on most of the raw material cost increases that hit hard at the start of this fiscal period.

In the notes to its accounts though, JLG maintain that over $eight million of steel price increases were unrecovered during the third quarter.

Net income after tax for the nine months is $21.5 million, a return of 1.8 percent on revenues, however in pure dollar terms this is a 100 percent improvement on the first nine months of 2004.

The latest quarter also recorded a healthier, 4.5 percent, return putting the company on track to significantly improve its profitability on last year..

International revenues showed the strongest increase, rising by 75 percent compared to 54 percent for domestic US sales. Sales in Europe touched $180 million, more than for the full 12 months of 2004, almost $10 milion of this was due to the inclusion this year of the Toucan range, acquired in the company's fourth quarter 2004. The strongest growth in perecentage terms was reserved for the “other markets” sector.

Looking at product split, sales of Aerial lifts for the nine months were $575 million an increase of 67 percent on the same period last year, while Telehandler sales were $354 million up 46 percent for the same period.

“Our record revenue growth this quarter, led by strong sales of aerial products, reflects the continued robust demand for all our products,” said Bill Lasky, Chairman of the Board, President and Chief Executive Officer.

“International sales grew 75 percent year-over-year and domestic sales increased by 54 percent. Our operating profit margin improvement reflects the full impact of pricing actions taken earlier in the year, the benefits of the OmniQuip synergies, Six Sigma initiatives, and ongoing productivity improvements. The order board has more than doubled sequentially to $665 million with delivery dates extending well into our 2006 fiscal year.”
He continued.
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Bill Lasky, CEO

“We were extremely pleased by the success of our equity offering during the quarter,” stated Jim Woodward, Executive Vice President and Chief Financial Officer. “We used the proceeds to repurchase a portion of our Senior Subordinated Notes and Senior Notes. These transactions, combined with our other business activities including $101 million in cash flow from operations, resulted in a quarter-end cash and marketable securities position of $172 million and a reduction in net debt-to-net debt plus shareholders’ equity ratio from 50 percent to 12 percent sequentially.”

OUTLOOK

“Economic activity, particularly commercial and non-residential construction activity, the primary drivers of equipment demand, continues at a healthy pace. Fleet age, rental and utilization rates for our type of equipment continues
to drive demand in most all geographic regions and product lines,” commented Woodward.

“Rental companies are continuing their strong pace of equipment refreshment propelled by some of the highest utilization rates they have seen since the last cycle peak in 2000. If historical patterns hold true, in the near- to mid-term, we should be moving from a strong cyclical recovery into an expansion phase as improving economic conditions in our principal markets and higher construction spending continue to drive demand. We also expect the continuing improvement of component availability to
help drive operating efficiency gains.

“In light of this outlook we now expect full year revenue growth of 40 to 45 percent versus our previously stated guidance of 30 to 35 percent. Adjusting for the expenses associated with the early extinguishment of debt and taking into consideration the dilutive effect of the equity offering, we expect full year earnings to be toward the upper end of our guidance range of $1.05 and $1.15 per share based on an annual weighted average of approximately 47.7 million diluted shares. Guidance for the full year on a GAAP basis remains in the $0.98 to $1.08 range.”