30.04.2019

Another strong quarter for JLG

JLG and its parent company Oshkosh have reported strong second quarter sales revenues and significantly higher profits.

Starting with the first six months of the fiscal year to the end of March, total JLG revenues were $1.81 billion, 16 percent up on the first half of 2018. This is broken as follows: New aerial work platform sales of $801.2 million – just over one percent lower than in the same period last year, while telehandler sales jumped 62 percent to $589 million. Other revenues – replacement parts, services and used equipment etc… were $423.9 million, 11 percent up on the year. Operating profit for the half year was 68 percent higher at $186.2 million, thanks to higher revenues, improved pricing and lower restructuring costs compared to a year ago. The order book at the end of March was $1.55 billion - almost 13 percent lower than at the same time last year.

Moving on to the second quarter, total revenues were 6.4 percent higher at $987.6 million, comprising Aerial work platform sales of $463.5 million - down five percent on the same quarter last year, more due to the comparison with a peak quarter last year when sales surged 32 percent. Telehandler sales though maintained last year’s strong upward momentum, rising 36 percent to $319.5 million, while Other revenues were largely flat at $204.6 million. The company said that all regions contributed to the sales increases, led by countries in the Pacific Rim.

Second quarter operating profits were 22.7 percent higher at $119.8 million due to the higher sales, higher pricing - related to higher material costs, the absence of restructuring related expenses and improved operational efficiencies, including fewer supplier disruptions, offset in part by those higher material costs. The second quarter also included a $7.7 million gain related to deferred income following the receipt of cash from a customer.

Oshkosh revenues for the half year were $3.79 billion - more than nine percent higher than last year, while pre-tax profits were just over 50 percent higher at $312.9 million.

Oshkosh chief executive Wilson Jones said: “We are pleased to report another quarter of strong performance highlighted by growth in revenue, operating income and earnings per share. We delivered increased sales in three of our four segments, leading to earnings per share of $1.82, which exceeded our fiscal 2018 second quarter results.”

“This quarter truly exemplifies why we are a different integrated global industrial. Our diverse end market exposure coupled with our integrated operations and supply chain allowed us to overcome a number of challenges, including a significant weather-related disruption in our commercial segment to deliver higher consolidated year-over-year sales and earnings.

“As a result of our continued strong execution, healthy backlogs and solid outlook for our markets, we are increasing our expectations for fiscal 2019 earnings.”

Vertikal Comment

This is clearly an excellent overall performance from JLG, it is interesting to note that sales of aerial lifts did not quite retain the massive surge experienced the first half last year boosted by impending price increases, while telehandler sales did manage to maintain their strong upward trend, although they were coming from a lower level. What is impressive is the company’s strong growth in operating profit, in spite of the fact that traditionally telehandler sales have carried significantly lower margins than platforms.

JLG is on course for another record breaking year, in fact IF this year’s second half simply matches last year’s levels the company will achieve its first $4 billion year. Even more impressive perhaps, is that the company could achieve telehandler sales in the region of $1.2 billion, almost certainly putting it ahead of Manitou and possibly JCB - making it the global market leader!

All in all a first class result from JLG.