01.08.2005

Gehl sales up 43%

Gehl, the American based producer construction and agricultural equipment, inclduing Telescopic handlers which it sells under the Gehl and Mustang brands, has announced first half revenues of $257 million, an increase of 43 percent on the same period in 2004.

Net income in the first half was up 55 percent to $10.5 million compared to $6.8 million in 2004. Operating income would have been up by over 75 percent, but the result was hit by a $1.5 million warranty accrual, to cover problems with certain purchased components that the company built into its products.
While Gehl hopes to recover all or part of this expense from the suppliers concerned, it is taking a cautious position at this stage.

Construction now represents 59 percent of Gehl’s, business, the company put its strong performance down to improving markets and a broader product line. The latest quarter includes the first fruits of Gehl’s partnership with Manitou, which includes the badging of some Gehl telehandlers as Manitou for sale via Manitou North America distribution channels and the supply of some compact Manitou telehandlers in Gehl livery for sale by Gehl dealers.