01.11.2018

Record year for JLG

JLG has posted an exceptionally strong fourth quarter with sales of more than a $1 billion while doubling its profits.

Looking first of all at the full year, total revenues were 25 percent up on last year at $3.78 billion, broken down as follows: Aerial work platform sales of $2 billion, an in crease of 23 percent, Telehandlers sales of $948.9 million, up 44 percent on the prior year, and other revenues – largely parts, service and used equipment – more than 10 percent higher at $810.7 million. The year end backlog/order book was more than double what it was a year ago at $962.4 million. Operating profit for the period improved almost 50 percent to $387.8 million.

Moving on to the fourth quarter, total sales were $1.06 billion, up 27 percent on the same quarter last year. This was made up of aerial lift sales of $555.7 million up 25 percent, 284.3 million worth of telehandlers – a jump pf 40 percent, and other revenues of $220.6 million, 19 percent up on the year. Operating profits more than doubled to $127 million, due to a combination of higher volumes and improved pricing levels. Lower restructuring costs compared to last year were also a positive factor, partly offset by negative exchange rates and higher material costs such as steel.

Oshkosh as a whole reported revenues 12.5 percent higher at $7.7 billion, with pre-tax profit up more than 44 percent to $594.6 million.

Vertikal Comment

This is a first rate result form JLG which just how well the market for aerial lifts and telehandlers is at the moment, particularly in North America, where the surge in telehandler sales puts the company close to overall market leadership, or at the very least head to head with JCB and Manitou.

The company has not been close to this level of sales for 10 years or more, and yet has plenty of opportunity for further growth and looks set for its first $4 billion dollar year in 2019. It shows - once again - the wisdom of the Oshkosh board and shareholder decision to rebuff the sell off pressures from 'Activist investor' Carl Icahn in 2012.

Very encouraging for the industry as a whole