29.07.2008

Gehl down 23%

Gehl, the North American telehandler and skid steer loader manufacturer, has reported first half revenues of $193.2 million, a fall of 23 percent on the same period last year.

Gross margins were down 25 percent, falling from 21.8 percent of revenues last year to 20.5 percent this year.

Pre-Tax profits plummeted over 72 percent to $6.44 million due largely to the lower volumes. The company says that it has managed to continue to increase its market shares, with production of skid steer loaders down just one percent compared to the first half of 2007 in a market that dropped 10 percent. Telehandler production fell by 14 percent, in a market that Gehl claims was down by 23 percent.

Exports at the company declined by 10 percent to $58 million and now represent 30 percent of total revenues. The company's backlog at the end of June was $73 million - nine percent up on June 2007.

The company has downgraded its full year revenue forecasts based on the current housing crisis continuing, to $390 to $410 million – 10 to 15 percent down on 2007.

William D. Gehl, chairman and chief executive officer said: "While weakness in the U.S. residential construction market provided headwinds to our business in the first half of the year, the Company maintained positive operating results, which reflects our diverse markets and effective cost savings initiatives. As we work through these near-term challenges, the Company will continue to position itself for long-term growth as evidenced by several efforts undertaken this year, including expanding our presence in international markets, broadening our product offering with the successful launch of new products and continuing to drive our performance in the markets we serve."