01.11.2007

JLG jumps 46%

Oshkosh Truck has reported results for its fiscal year to the end of September 2007. While the amount of detail provided on JLG is far less than we would like to see, it is clear that JLG is showing a year on year increase in revenues of over 30 percent.

JLG joined Oshkosh in December 2006, so it is very hard for us to make any meaningful comparisons this year. However Oshkosh says that JLG's sales for the three months to the end of September were $840 million, an increase of 46.6 percent on the same period of 2006.

Sales for the 10 months that JLG has been part of Oshkosh were $2.54 billion, an increase of 10 percent on JLG’s last full year to the end of July 2006.

If the 10 month numbers are annualised (extrapolated over 12 months) it equates to annual revenues of $3.05 billion an increase on JLG’s 2006 full year numbers of almost 33 percent.

JLG’s operating income in the past quarter was $114.5 million or 13.5 percent of sales, this is up from the 11.5 percent that JLG achieved in its last quarter as an independent company. That number was though negatively affected by acquisition costs.

It is also up significantly from the 10.5 percent operating income that JLG has reported for the full 10 month period that it has been part of Oshkosh.

JLG’s order book as of the end of September, was $854 million or roughly three to four months worth of current production levels.

Oshkosh says that sales of JLG telehandlers have declined significantly in the USA, but that sales of the Caterpillar branded telehandlers have more than compensated.

On the aerial lift side the company does not seperate out revenues but has indicated that the results have been boosted by international sales, suggesting that its domestic lift sales were either flat or up modestly.

Oshkosh as a whole reported sales up by almost 85 percent, to $6.3 billion, due largely to the JLG acquisition. JLG is now the Access Equipment division of Oshkosh, the largest of its four sectors.

Pre tax profits for the group were $396 million, an increase of 21 percent over the same period in 2006.

Robert G. Bohn, chairman and chief executive officer of Oshkosh Truck, said: "The Oshkosh Truck family of companies delivered another exceptional quarter, led by our newest segment, access equipment. This truly outstanding performance by JLG during the quarter propelled us to another all-time record for full-year sales and net income as JLG became a more integral part of our business. I can't say enough about the efforts put forth by everyone involved as we work together to grow this great company."

"Our defense business continued to grow swiftly as we ramped up truck production in the second half of the fiscal year in preparation for further expected growth in fiscal 2008. Our industry-leading Pierce fire truck brand drove solid performance in our fire & emergency segment, as they posted a strong quarter, a strong year and gained market share," added Bohn.

"Our European refuse business, the Geesink Norba Group, has underperformed our expectations and we are now in the midst of a major restructuring of that business. As part of the restructuring, we have had to make some difficult decisions on facility rationalisation and headcount reduction. But, we believe that these moves will enable us to successfully turn this business around and return it to profitability."

Vertikal Comment

This is an excellent first year result for JLG as part of Oshkosh, the CAT telehandler deal now looks inspired. As North American telehandler sales slump, JLG, which is the most exposed of all telehandler manufacturers to the US market, is more than covering the shortfall with sales of CAT branded machines on a world wide basis.

It is also giving JLG a share, albeit small, of the European telehandler market.

The lack of a more detailed breakdown at this stage limits our ability to compare JLG results more closely, but it is certainly clear that JLG is now on a roll. The company is even outperforming Haulotte now in terms of revenue growth?