28.04.2021

JLG bounce back

JLG has reported a strong bounce back in the second quarter of its fiscal year, in terms of both revenues and profit.

Starting with the six months to the end of March, total revenues were 7.5 percent down on the same period last year at $1.3 billion. The total was made up of aerial lift sales of $636.2 million, up almost 10 percent on last year, but offset by a 29 percent fall in telehandler sales to $298.1 million, as well as an 11.5 percent fall in other revenues - largely parts, services and used equipment - to $364.7 million. Operating profit for the first half declined 25 percent to $105.4 million.

In the second quarter, total sales were $736.6 million, up 6.5 percent on the same quarter last year. Aerial lifts sales jumped 31 percent to $358.2 million thanks to strong sales in Asia and North America and a comparison with a weak quarter last year. Telehandler sales declined 19 percent to $175.2 million, while other revenues edged up one percent to $203.2 million. Operating profit was 12.5 percent higher at $80.5 million thanks to a good product mix, lower costs and higher overall revenues.

Parent company Oshkosh posted half year revenues marginally below last year’s levels at 3.37 billion, with a pre-tax profit of 215.7 million, almost six percent up on the year.

Oshkosh chief executive John Pfeifer said: “We are pleased to report strong fiscal second quarter results that exceeded our expectations and were higher than the prior year. Our access equipment and fire & emergency segments both delivered strong revenue and profitability, and our outlook across the company has improved considerably over the past several months. We expect our strong second quarter performance and improved outlook to yield growth in revenues, operating income and earnings per share in fiscal 2021 compared with last year’s results. We are pleased to reinstate our practice of providing expectations for the current fiscal year. For fiscal 2021, we expect full year revenues to be in the range of $7.75 to $7.95 billion, leading to expected diluted earnings per share of $6.10 to $6.60."

Vertikal Comment

A good second quarter from JLG, although one wonders why telehandler sales were so much slower than aerial work platforms. From what we hear the market for both aerial lifts and telehandlers looks set to improve substantially as the year progresses, and the European market picks up. All in all, that should help ensure that the full year result to the end of September is a really positive one for JLG, while putting the company in a good position for a record breaking year beginning in October.