Sparkling first half for JLG

Aerial lift and telehandler manufacturer JLG has reported a strong first half and second quarter.

First Half

Total revenues for the six months to the end of June were $2.52 billion, up 35 percent on the same period last year.

The total is made up as follows:
Aerial lift sales: $1.27 billion +43%
Telehandler sales: $732.2 million +36%
Other revenues: $522.4 million +21.5%

Operating profit for the period more than quadrupled to $346.7 million.
The backlog/order book at the end of June was $4.37 billion almost 10 percent higher than this time last year.

Second quarter

Total revenues were $1.33 billion, 36 percent higher than in the same quarter last year.

The total made up as follows:
Aerial lift sales: $664.9 million +47%
Telehandler sales: $390.8 million +26%
Other revenues: $272.6 million +26%

Operating profit for the quarter tripled to $211.7 million.

Parent company Oshkosh reported first half revenues increased 16.8 percent to $4.689 billion, while pre-tax profits increased fivefold to $361 million.

Chief executive John Pfeifer said: “We are pleased with our strong financial performance in the quarter, highlighted by significant growth in sales and operating income. In particular, our Access and Vocational segments both delivered double digit operating margins in an environment where supply chains have improved but have not yet returned to historical norms. Our results demonstrate that our actions over the past several quarters to redesign, resource and dual source components as well as implement numerous operational improvements are enhancing our resiliency in a constrained supply chain environment.”

“Access segment sales for the second quarter increased 35.9 percent to $1.33 billion as a result of improved sales volume, higher pricing in response to higher input costs and the inclusion of sales related to the Hinowa acquisition. Operating income increased to $211.7 million, or 15.9 percent of sales, compared to $72.7 million, or 7.4 percent of sales. The increase was primarily due to higher sales volume, higher pricing and improved product mix, offset in part by higher incentive compensation and increased operating expenses to support the higher sales levels.”

“During the quarter we announced plans to acquire the AeroTech business from JBT Corporation. I'm pleased to share that we completed that acquisition today and look forward to the integration of AeroTech, which we expect will drive strong growth in the attractive airport ground support and associated airport services markets.”

Vertikal Comment

This is a stonking result from JLG/Oshkosh access division, some of it due to the addition of Hinowa’s sales and profits following its acquisition in January, although this would not have contributed much more than an eighth - or less - of the additional aerial lift sales.

The positive result coincides with an apparent change of tack from the company over the past few months, as it seemed to have returned to a more customer focused, outward and friendly sales strategy while benefiting from price increases as older orders dropped out of the system, along with the significantly improved supply chain which would not only have reduced buying costs, but also improved production efficiencies.

With a backlog equivalent to almost 12 months sales, the company may be on stream for a record year in 2023 and a very strong start to 2024.

All in all a very positive result.