JLG increases sales despite telehandler reduction
By Murray Pollok03 August 2017
JLG Industries sales increased by 2.9% to $980.2 million in the three months to 30 June, the third quarter of its fiscal year. Operating profit increased by 6.6% to $130.2 million.
Oshkosh Corp, JLG’s owner, said the results were better than expected and reflected higher sales of aerial platforms offset in part by lower shipments of telehandlers. AWP sales rose by 14% to $583.1 million for the three months, while telehandler revenues were 24% down at $202.9 million. The results included a $11.2 million charge for restructuring at the access division, acations which were previously announced.
In January, JLG announced that as a result of closing its production facility in Maasmechelen, Belgium, as well as its engineering centre in Bruntingthorpe, UK, its telehandler product offerings in the EMEA region would be reduced. The company said it planned to produce a limited range of telehandlers for the region at its Medias, Romania plant.
Meanwhile, North American telehandler production was set to be unaffected by the closure of its Orrville, Ohio, plant, with full production relocated to its Pensylvania facility.
In the third quarter, total group sales were up 16.6% at $2.04 billion, with the defence segment leading the way. Operating profits rose by 44.3% to $211.9 million.
Wilson Jones, president and chief executive officer of Oshkosh Corp, said; “This was a strong quarter by many measures of performance and we are proud of the way our team members are executing in this, our 100th year as a company.
“In particular, our access equipment and fire & emergency segments reported stronger than expected results in the quarter and all of our non-defence segments ended the period with higher year over year backlogs.”
Mr Wilson said Oshkosh looked forward to delivering a strong fiscal 2017 performance and that the company believed it was “well positioned for fiscal 2018, as evidenced by our strong backlogs, positive sentiment in our markets and the strength of our people”.