31.10.2013

JLG up 12%

JLG has reported its full year results to the end of September, with sales up 12 percent and a steady order book.

Total revenues for the year were $3.12 billion, made up of $1.48 billion of aerial lifts – up six percent, $1.1 billion of telehandler sales – up 24 percent, while other revenues – largely parts and services – increased four percent to $530 million. Operating income for the year jumped 65 percent to $379.6 million. The backlog at the end of the period was two percent higher at $367.9 million.

Looking at the fourth quarter, revenues were almost nine percent higher at $780.6 million, made up of $367 million of aerial lifts – 11 percent up on last year, telehandler sales of $274 million - 11 percent higher and other revenues of $139 million two percent higher than last year. Operating income for the quarter was $81.2 million – 36 percent higher than last year.

The increased revenues mostly came from higher unit volumes in North America and the impact of previously implemented price increases, offsetting lower sales volume in Australia.

Owner Oshkosh fared less well, in terms of full year revenues which fell six percent to $7.66 billion, however pre-tax profits improved 44 percent to $445 million, however in the fourth quarter it posted a 16 percent fall in revenues and a 37 percent drop in profits.

Oshkosh chief executive Charles Szews said: “We delivered fourth quarter results that exceeded the high end of our most recently announced estimated earnings range, finishing up a year that significantly exceeded our initial expectations. Continued strong demand for access equipment in North America and improved demand for concrete mixers in the U.S. partially offset a significant sales decline in our defence segment in the fourth quarter.”

“The power of the company’s MOVE strategy was evident in fiscal 2013, as each non-defence segment – access equipment, fire & emergency and commercial – increased operating income margins over the prior year. We believe we are on track to achieve our fiscal 2015 earnings per share targets.

“We expect improved performance in fiscal 2014 in each of our non-defence segments as we take advantage of expected recovering markets. While our growth expectations in these segments will likely not be enough to overcome the expected reduction in defence revenues and operating income.

Vertikal Comment

Overall an excellent result from JLG, with a particularly strong performance from telehandler sales, which puts the company close to worldwide telehandler market leadership. The company also looks well set to make further gains in revenues and profits in 2014, although the low relative level of the company’s order book – less than six weeks – seems to indicate on-going uncertainty in the market, which could easily translate into a weak quarter or prevent faster ramping up of production in the case of a stronger pick up than currently expected.

But all things consider very positive news.