31.01.2023

JLG ends on a high

JLG has published its full year and fourth quarter results as part of parent company Oshkosh. Revenues have continued to grow and came close to reaching a $4 billion year. Profits, which were very weak in the first half, saw a bounce back in the third quarter continuing into the final three months.

Full year numbers
JLG achieved revenues of just under $4 billion - an increase of almost 17.5 percent compared to the same period last year. The sales breakdown was as follows.
Aerial Lifts $1.95 billion +21%
Telehandlers $1.17 billion +37%
Other $838.3 million -3.5%
Total $3.97 billion +17.5%

Operating profit for the period increased almost eight percent to $313.2 million, although the liquidation of an overseas operation adds a further $4.6 million to this.

The backlog/order book as of the end of December was $4.36 billion - more than a year’s production at fourth quarter levels - and up 22 percent on the year.

Fourth Quarter
Moving on to the fourth quarter, total sales were $1.07 billion, an increase of almost 29 percent over last year, and maintaining the $4 billion annual result trend. The breakdown by product sector was as follows.
Aerial Lifts $540.7 million +30%
Telehandlers $319.3 million +51.5%
Other $214 million + 3%
Total $1.07 billion +28.9%

Operating profit for the quarter more than tripled to $116 million from $38.2 million a year ago. This due to higher prices coming through along with the higher volumes, partly offset by a $20 million negative currency impact and high costs.

Oshkosh as a whole posted total revenues up four percent to $8.28 billion, while pre-tax profits slumped 45 percent to $275.6 million.

Oshkosh chief executive John Pfeifer said: “Oshkosh team members delivered a strong close to fiscal 2022 with robust sequential and year over year revenue and operating income growth during the fourth quarter.”

“This morning we announced the combination of our Fire & Emergency and Commercial segments into a new ‘Vocational’ segment. The businesses will now be aligned in three segments: Access, Defence and Vocational. We are also announcing that we have entered into a definitive agreement to sell our rear discharge concrete mixer business and expect to close by the end of this quarter.”

Vertikal Comment

In terms of revenue this is very solid full year result from JLG, with both aerial lift and telehandler sales rising steeply. While the annual profit highlights the steep cost increases and supply chain problems in the first half, the benefits of the price increases show clearly during the fourth quarter. We cannot see the geographic breakdown yet, but anecdotal evidence suggest that most of the increase has come from North America, which is fine for now, but if correct might cause issues in a year or two.
The company has however agreed the acquisition of Hinowa, which was obviously not a factor in these numbers, but which will provide an additional boost to 2023 numbers.

Overall, this is a pretty good set of numbers for JLG.