23.05.2004

JLG on target for $billion

Third quarter revenues at JLG rose by 55 percent to $319 million, compared to last year. Year to date revenues are up 49 percent to $769 million, outstripping revenues for the full year 2003 and on target to pass a billion for the full 12 months, the first time in JLG’s history. Gross margins for the quarter almost doubled to $63.6 million reaching 20 percent of sales, a level not seen by JLG for some time. Year to date margins climbed a percent and half to 18.9 percent.

Operating income almost tripled to $23.5 million equaling 7.4 percent of sales, compared to 4.2 percent in 2003. Operating income year to date is 5.7 percent up from four percent last year. Net income for the quarter quadrupled to $8.7 million.

Revenues were of course boosted by the Omniquip acquisition, but even on a like for like basis, sales of JLG products rose by a healthy 22 percent. Year to date sales of Aerials reached $345 million up 20 percent on 2003, however aerial lift sales are now coming close to being only 50 percent of revenues (When related product support, rental and financial services are added on). JLG targeted to reduce dependency on aerials when the lift business was in the doldrums with the plan to obtain 50 percent of sales from other products. This target could become a reality in 2005.

Group Product support revenues leapt by over 35 percent to $129 million for the nine months while rental revenues rose by 11 percent and Telehandler sales almost tripled to $241 million thanks mostly to the Omniquip acquisition.

Geographically the USA led the way, up almost 60 percent on both the quarter and year to date, most of the Omniquip impact is seen in the USA. Sales in Europe therefore increased more modestly but were still up over 40 percent for the quarter to $48 million and up 12 percent year to date to $112 million. Unlike the USA virtually all of the Increase in Europe is organic.

"Order patterns continued to strengthen during the third quarter reflecting increased fleet refreshment and customer confidence," stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. "Our consolidated order backlog is strong and rising. Steel shortages have impacted our production lines resulting in disruptions to our production schedules and higher work-in-process inventory, however, despite these challenges, we are pleased that our earnings are in line with our internal plans for the year. We continue to focus on our core access products, expanding our products and distribution strengths with our recently announced acquisition of Delta Manlift in France and our intended alliance with the SAME Deutz-Fahr Group for agricultural telehandlers in Europe."

“The North American economy continues to strengthen reflecting positive trends in construction spending, capacity utilization and consumer confidence. The European economic indicators are also trending in a positive direction, albeit lagging the North American economic recovery. Although interest rates have been stable, concerns over raw material and energy prices remain. With the continuing positive trends of the key indicators associated with the access industry and our nine-months revenues already surpassing all of fiscal 2003, barring any catastrophic event, we are optimistic about the near term continued Lasky”.