11.08.2016

Telehandler boost for Skyjack

Skyjack has reported a rise in second quarter revenues, thanks to strong sales of telehandlers , but margins were impacted as a result.

Total revenues for the six months are just over one percent lower at $493.7 million, while operating profits slipped over 18 percent to $80.8 million.

In the second quarter revenues edged up 2.1 percent to $290.1 million thanks to a strong improvement in telehandler sales, partially offset by lower aerial lift sales due to lower spending from the major rental companies in North America. Operating profit dropped 3.3 percent due to the lower margins on telehandler sales, compared to aerial lifts.

Parent company Linamar as a whole posted a record half year with revenues up 21 percent to $3.2 billion, while pre-tax profits were 13 percent higher at $89.2 million.

Linamar chief executive Linda Hasenfratz said: “2016 is shaping up to be another record year of double digit top and bottom line growth. We saw record results in Quarter 2 which is fantastic and we feel confident in our ability to continue to grow. Business wins are at a record level, markets are stable and opportunities globally significant.”

Vertikal Comment

Skyjack has been affected by the sluggish capital expenditure programmes by the major US rental companies as have JLG and Genie. It has done well though to make progress with its telehandler sales, which almost certainly relate to the new and updated products that it launched earlier in the year.

While it will not be overly enthusiastic about the results, it will also be aware that it is doing slightly better that its two larger competitors. It is also worth pointing out that the six monthly and quarterly comparisons are with record results achieved in the same period last year. So all said and done, a very credible result.