30.01.2019

Strong start for JLG

JLG has reported its first quarter results with steep rises in revenues, profits and its order book.

Revenues for the first quarter to the end of December totalled $826.5 million, up 31.6 percent on last year, made up as follows:
New aerial lift sales $337.7 million up 4.5 percent on the same period last year and telehandler sales which more than doubled to $269.5 million, thanks to a buoyant North American market and increased production capacity. Other revenues including parts, services and used equipment sales increased 25 percent to $219.3 million. The backlog/order book at the end of December was up 7.5 percent on the year at $1.7 billion.

Operating income more than quadrupled to $66.4 million, thanks to higher volumes, price increases and the absence of last year’s restructuring costs. It also included a $5.5 million ‘write back’ of a receivable that has now been collected. Even without these factors profits would have been double those of last year.

Oshkosh chief executive Wilson Jones said: “I am pleased to report strong performance by our team in the first quarter, with sales growth of 13.7 percent, adjusted operating income growth of 72.4 percent and adjusted earnings per share growth of 91.7 percent to $1.61. Fiscal 2019 is off to a good start and we remain confident in our outlook, supported by positive customer sentiment, elevated backlog and a focused Oshkosh team. Led by double digit sales growth in our access equipment and fire & emergency segments, the continued execution of our MOVE strategy drove higher operating income and higher operating income margins in all four segments. As a result of our positive start to the year and improved outlook in our access equipment segment, we are raising our fiscal 2019 earnings expectations.”

Vertikal Comment

This is an excellent set of numbers from JLG, which is really gaining some momentum at the moment with plenty of upside potential in both the aerial lift and telehandler market. The only downside is the relatively modest improvement in aerial lift shipments in what is a very strong market. The company has not commented on the sales or indicated where it was strong or weak.

The company has substantial new product launch plans for the spring, which should help keep maintain and possibly build the momentum. JLG is the first company to release numbers for the quarter and as such can not be put into perspective with its major competitors. However we would not be surprised to see others post higher aerial lift sales growth, at least in percentage terms.
All said and done an even more positive result than expected.