02.11.2014

Strong finish for JLG

JLG has reported its fourth quarter full year results with a strong increase in revenues and profitability.

Full year revenues were $3.5 billion, over 12 percent higher than last year, thanks mostly to an 18 percent increase in aerial lift shipments to $1.75 billion. Telehandler sales increased almost five percent to $1.16 billion, while other revenues increased 14 percent to $603.3 million. Operating profit for the year increased 32 percent to $501 million.

Looking at the fourth quarter, total sales increased almost 20 percent to $932.7 million, with aerial lift revenues up 23 percent to $450.4 million, telehandler revenue growth was stronger than the year to date, increasing 15 percent to $315.4 million. Finally other revenues were $166.9 million 20 percent up on last year.

Fourth quarter operating income jumped 57 percent to $127.4 million, due to the higher sales volumes and the impact of cost reduction efforts, offset by increased new product development spending and higher operating costs.

Oshkosh chief executive Charles Szews said: “The ongoing benefits from executing our MOVE strategy were evident as our team delivered solid fourth quarter results, capping off an impressive year of transition that has seen our non-defense businesses move to the forefront of our operating results. Our access equipment and commercial segments led the way in fiscal 2014, with the access equipment segment surpassing last year’s record operating income margins by nearly 200 basis points”.

Vertikal Comment

An exceptional result from JLG with higher sales and improved margins, the fourth quarter looks particularly impressive given the margin challenges that Terex reported earlier in the week. This might of course simply be down to timing of component or material contracts? However JLG goes into its new fiscal year with strongly positive statements.

It should be pointed out that the fourth quarter 2013 did have an impairment charge which enhanced the comparison somewhat, but not significantly. JLG is growing faster than most companies in the access and telehandler markets, something that is quite unusual for a market leader. If the company continues this trend it should become the first access manufacturer to hit $4 billion in revenues next year.