31.10.2017

Solid pick-up at JLG

JLG has ended its fiscal year with a strong fourth quarter in terms of revenues and in particular profits.

Beginning with the full year overall revenues were marginally higher than last year at €3.05 billion. This was made up of $1.63 billion of new aerial lift sales, six percent higher than last year. $661 million of new telehandlers – down 14 percent on the prior year, and $735 million of other sales – mostly parts, services and used equipment etc… - an increase of five percent on the year. Operating profit for the period was 1.5 percent lower at $259.1 million, due as much as anything to restructuring charges.

Moving on to the fourth quarter, overall sales were 7.5 percent higher than in the same quarter last year at $833.8 million. This comprises an eight percent improvement in aerial lift sales to $443.4 million, a 13 percent boost to telehandler sales at $204 million and a one percent increase in other revenues to $186.4 million. The operating profit for the quarter jumped 38 percent to $62.4 million, while the backlog/order book at the end of September was $452.2 million, compared to $179.3 million at the same point in 2016.

Oshkosh as a whole posted full year revenues, almost nine percent higher at $6.83 billion, with pre-tax profits of $411.3 million, up 34 percent on last year.

Oshkosh chief executive Wilson Jones said: “I am pleased to report another quarter of strong performance, with results that exceeded our expectations. We grew revenues in all four of our segments, leading to higher adjusted consolidated operating income and adjusted operating income margin.”

“We look forward to delivering strong performance in fiscal 2018 and believe we are well-positioned to grow sales, adjusted operating income and adjusted earnings per share, all while continuing to invest in our business and in our people.”

Vertikal Comment

This is a very encouraging set of numbers from JLG, of particular note is the strong improvement in telehandler sales which have been sinking since new emission regulations sucked business forward in late 2015, leaving something of a post regulatory vacuum.

The strong spike in quarterly profitability has as much to do with a $26.9 million charge in the same quarter last year, as it did to higher revenues and better margins. The year to date number is affected by write offs earlier in the year to cover the costs of plant closures.

Most promising of all perhaps is the improvement in the backlog at this point in the calendar, while it is substantially lower than at the half year it is getting substantially better than at this time last year.

All in all an encouraging report which bodes well for 2018.