01.08.2019

Strong performance from JLG

JLG has reported another positive quarter, boosted by strong sales of telehandlers.

Total revenues for the first nine months of its fiscal year to the end of June were 13 percent higher at $3.06 billion. Made of a one percent growth in the sale of new aerial work platforms to $1.46 billion, a 42.5 percent jump in telehandler sales to $947.9 million, and a 10 percent rise in other revenues – including replacement parts and used equipment - to $649.9 million. Operating profits for the period improved more than 45 percent to $376.1 million. The backlog/order book at the end of June was 30 percent lower than at this point last year at $854.8 million.

Moving on to the third quarter results, total revenues were eight percent higher at $1.25 billion, comprising aerial lift sales of $664.2 million two percent higher than in the same quarter last year, telehandler sales of 358.9 million up 19 percent and other revenues of $226 million an increase of eight percent. All regions posted growth apart from Europe, Africa and Middle East. Operating profit was 27 percent higher at $189.9 million, thanks to the higher volumes, improvements in manufacturing efficiency and the lack of any restructuring costs.

Parent company Oshkosh reported a nine percent increase in revenues for the nine months to $6.19 billion, with a pre-tax profit of $588.8 million a 45.5 percent increase.

Chief executive Wilson Jones said: “Our strong fiscal third quarter performance resulted from increased sales in each of our business segments as well as double digit growth in operating income in our access equipment and fire & emergency segments. I am proud of the hard work and efforts of our team members as they continue to drive higher performance by executing our business strategy and initiatives.”

Vertikal Comment

This is an excellent set of numbers from JLG, particularly in comparison to other manufacturers in the sector. The backlog will though be of some concern given that it has dropped faster than might have been expected and only represents around eight to 10 weeks of business. It is particularly interesting to see how flat sales of aerial work platforms have been this year, especially when compared to telehandler sales. This might though reflect a weaker performance in Europe offset by higher sales in North America – European sales are mostly platforms, which North America is its main telehandler market.

That said the company is on target for an excellent year and ought to end up with revenues of well over $4 billion for the first time in its history, and an operating profit in the region of $550 million.