25.04.2008

Sales slip over 28% at Gehl

Gehl, the US based telehandler and compact equipment manufacturer has reported first quarter revenues of $82.2 million a fall of 28.5 percent compared to the same period in 2007.

The company recorded a pre-tax loss for the quarter of -$1.2 million compared to a pre-tax profit of $9.8 million during the same period in 2007.

This was due to the lower revenues, although gross margins held up thanks to cost cutting, higher sales and admin costs – almost 20 percent of revenues – from higher Research and Development expenditure, Higher IT costs, Costs associated with streamlining the Gehl and Mustang sales teams and a $2 million charge for the adoption of Statement of Financial Accounting Standard 157 - Fair Value Measurements. Interest costs were also higher while interest income was lower.

In spite of its first quarter result Gehl is maintaining its full year revenue projections of $405 to $425 million compared to $458 million in 2007 and $486 million in 2006.