20.11.2003

JLG announces 32 per cent increase in revenues

JLG has declared its first quarter results of its 2003/4 fiscal year. Sales were up 32 per cent, while operating income was up 21 per cent. Like-for-like sales, however, were relatively flat.

Consolidated new machine sales revenues for the quarter jumped by over US$53 million to $207 million. A rise of 32 per cent. Stripping out Omniquip revenues, like-for-like sales were marginally down on those for the same period last year.

Total revenues, which include financial and rental income, showed a like-for-like (non Omniquip) decline of $1.6 million.

Gross Profits without Omniquip rose by 7.5 per cent thanks to a $3.8 million reduction in costs of sales for JLG products.

Overall Gross Margin rose by a full percentage point, entirely due to the ongoing efficiencies on JLG products. Gross Margin for JLG products was 19.6 per cent compared to 12.4 per cent on the Omniquip product range. With both Skytrack and Lull products now in production in JLG's McConnelsburg plant, cost of sales for these products are expected to begin benefiting from the JLG cost reduction process.

Net income dropped to $277 million from $329 million, a fall of over 15 per cent. This was due to the effects of the Omniquip integration and additional interest payments. Without Omniquip, like-for-like Net income rose to $449 million from the previously mentioned $329 million.

The first quarter results also showed that JLG is now very close to its target for 50 per cent of revenues coming from non-aerial platform sources.

Aerial work platform sales for the quarter dropped by $2.2 million year-on -ear.

The Omniquip acquisition and softer sales in Europe also saw North American revenues rise as a proportion of total revenues. They now represent 80 per cent of total JLG sales, compared to 73 per cent for the same period in 2002.

JLG is optimistic about its prospects in 2004, with North American rental fleets now aging to between 42 and 56 months on average. Replacement pressures on rental fleets are growing.
Indications from the top ten rental companies are also encouraging.

JLG quoted sales prospects in Europe as lagging the US by up to 12 months. But opportunities elsewhere are likely to partially compensate.