25.01.2018

28% jump for JLG

JLG has reported a strong fiscal first quarter with a substantial rise in orders and sales, although profits were dampened.

Total revenues for the first quarter to the end of December were $628.2 million, a rise of more than 28 percent. All sectors contributed to the improvement, with aerial work platform sales rising almost 39 percent to $323.5 million.

Telehandler sales also increased by more than 28 percent from a low last year to $129.5 million this year. Finally other revenues – largely parts, service and used equipment – went up eight percent to $175.2 million.

Operating profit on the other hand fell more than 43 percent to $13.8 million, but $16.1 million of this was due write offs for the ongoing restructuring programme in North America and Europe announced last year, which includes the closure of the Maasmechelen plant in Belgium, and the Orville plant in Ohio, as well as the Bruntingthorpe facility in the UK. Without these charges, the profit would have been up nearly 23 percent – held back by exchange rates, product mix and higher material costs.

The backlog/order book at the end of December stood at $1.58 billion, compared to $594.3 million at the same point last year.

Parent company Oshkosh reported a 31 percent rise in revenues to $1.59 billion, while pre-tax profits were more than 2.5 times higher, increasing from $23.6 million last year to $60.6 million this year.

Oshkosh chief executive Wilson Jones said: “I am pleased to report a positive start to fiscal 2018, with results that exceeded our expectations. Strong orders in the quarter and strong backlogs exiting the quarter reflect the broader positive macroeconomic environment driving favourable conditions in many of our markets. I am proud of the hard work and dedication of our Oshkosh team members that delivered these solid results. Sales grew in three of our four segments, and all four segments reported higher adjusted operating income. We continue to identify opportunities to improve our execution and remain focused on delivering strong performance and shareholder value.”

“As a result of our positive start to the year, solid outlook and lower tax rate as a result of tax reform in the U.S., we are increasing our full year expectations for earnings. We now expect full year earnings per share to be in a range of $4.75 to $5.20.

Vertikal Comment

Another positive start to the reporting season. It seems clear the dip in telehandler sales resulting form the engine and emission rules changeover is beginning to recede, while aerial lift sales have continued to gather momentum.

The company is in a good position to benefit from a growing global economy and the underlying growth of the powered access market, and should post an excellent year in 2018. It needs to make sure though that the major changes it began to implement last year are completed on time and that the new arrangements function flawlessly, if not the positive news will start to fade all too fast.