02.05.2011

JLG up 53.6%

JLG increased its external sales in the first half of its fiscal year by 53.6 percent and moved back into profit.

Total sales were down substantially due to the ending of the intercompany military subcontract business, but sales of access equipment and telehandlers increased by 72.7 percent in the second quarter to $471.2 million compared to the same time last year. At the same time the company made an operating profit of $17.7 million in the quarter – down from $45.8 million last year which it also invoiced $737 million of intercompany military business.

For the six months the company had revenues of $761.8 million all of which was to external customers. While operating income was $1 million – reflecting a poor first quarter which included restructuring costs. Profits last year were $59.1 million thanks to almost a $1 billion of intercompany business.

The company’s order book almost tripled from $203.3 million at this point last year to $596.3 million this year.

The company says that the improved result is due to increased global demand, led by replacement demand in North America.

Vertikal Comment

This is a strong result from JLG and reflects the pick up across the sector as replacement business beings to kick-in from North America and more recently Europe, while developing markets begin to show greater interest in powered access equipment.

Another positive indicator