30.10.2024

Growth slows but continues for JLG

JLG owner Oshkosh has published its results for the nine months to the end of September, including a positive performance from the aerial lift and telehandler manufacturer.

YTD

Revenues
Total revenues for the nine months increased just over four percent to $4 billion, made up as follows:
Aerial work platforms - $1.9 billion -0%
Telehandlers - $1.25 billion +11%
Other revenues - $862.4 +9%
Total - $4.01 billion + 4%

Operating profit improved almost 15 percent to $662.5 million, compared to the same period last year when profits were almost triple that of the same period in 2022.

The backlog/order book at the end of December was $2.23 billion, down almost 47 percent on last year. The company is forecasting full year revenues of $5.1 billion just over two percent up on 2023.

Third Quarter

Revenues
The pace of growth slowed in the third quarter, increasing 3.5 percent to $1.36 billion, thanks to the higher sales volumes in North America, offset in part by lower sales in the Europe, Africa and Middle East and Rest of the World regions.

The third quarter revenues were made up as follows:
Aerial work platforms - $631 million 3.5%
Telehandlers - $445 million +13%
Other revenues - $286.6 million +6%
Total - $1.36 billion + 3.5%

Operating profit

Third quarter operating profit declined almost six percent to $207.9. The decrease was primarily due to higher material costs as well as higher selling, general and administrative expenses, offset in part by higher sales volume and improved sales mix.

Oshkosh results
Nine month revenues for Oshkosh as a whole increased 13 percent to $8.13 billion, while pre-tax profits for the period jumped 17 percent to $ 704.1 million.

Oshkosh chief executive John Pfeifer said: “We are pleased to report solid third quarter performance with revenue growth of 9.2 percent and an adjusted operating margin of 10.3 percent.”

“Recently, we have been experiencing some softness in the access equipment market in North America. While we believe long term demand drivers such as aged fleets and mega projects remain positive, we are adjusting our expectations for revenue and operating income for the remainder of the year based on current market conditions.

Vertikal Comment

While the third quarter shows the same signs of softening as other manufacturers have reported, this is still a very respectable set of numbers, especially if you appreciate the very strong increases this time last year which have largely ‘stuck’.

At the end of the day this is a very good result, and the company looks to be in good shape to make the most of 2025.