02.08.2004

Profits rise 148 percent at Gehl

Shortly after announcing a joint venture with telehandler producer, Manitou, the Gehl Company has released its second quarter and half year results which show a significant pick up from 2003.

The second quarter saw sales rise by almost 40 percent to $95.5 million, the increase for the first six months show a similar increase of 42 percent to $180 million. The revenue increases came equally from construction and agricultural sales.

Net income for the two periods showed an even more striking improvement with profits for the second quarter up by 75 percent to €3.9 million and for the half year up by 148 percent to $6.8 million.

Company Chairman and CEO William Gehl said “sales growth was led by the introduction of new Gehl skid loader models earlier this year, growing demand for telescopic handlers by large rental customers and increasing demand for compact track loaders”.

Gehl says it continues to expect higher sales for the remainder of the year, but high steel prices may offset some of the benefits of increased revenue. The company expects net sales to be 42 percent to 45 percent higher than 2003 levels, with 2004 earnings expected to be in the range of $12.5 million to $15.5 million.

As part of Gehls distribution pact with Manitou, the French based company has purchased nearly 1 million new shares in Gehl, in spite of this dilution the ongoing improvement in the company’s performance should still see earnings per share post an increase on 2003.

While Gehl does not, as yet, sell its telehandler range in Europe, it does have a European business, Gehl GmbH, based in Neuenkirchen, Germany. The European business concentrates on skid steer loaders and mini excavators. The brand is also quite well known in the agricultural sector.