02.08.2017

Strong quarter for JLG

JLG has published its nine months results today, showing a strong pick up in aerial lift sales.

Looking first of all at the year to date numbers, total revenues are roughly the same as last year down almost one percent to $2.19 billion. This is made up of $1.19 billion of new aerial lifts – up five percent on the same period last year - $457.8 million of telehandlers - down 23 percent on the year - and other revenues mostly parts service and used equipment of $548.6 million up 6.5 percent. Operating profit for the nine months was almost 10 percent lower at $196.7 million.

Moving on to the third quarter total sales improved almost three percent to $980.2 million. Of this new aerial sales were almost 14 percent higher at $583.1 million. At the same time telehandler sales dropped 24 percent to $202 million. Other revenues were 12 percent higher at $194.2 million. Operating profits for the quarter improved 6.5 percent to $130.2 million thanks to the higher sales volume, a more favourable product mix and more efficient material usage. Order intake also improved almost 40 percent year on year to $523 million although it is 27 percent down on the quarter.

Owner Oshkosh reported year to date revenues of $4.87 billion up 7.5 percent on the same period last year, while pre-tax profits jumped almost 30 percent to $290 million.

Oshkosh president Wilson Jones said: “We are pleased to report another quarter of strong performance highlighted by growth in revenue, operating income and earnings per share in our fiscal third quarter. 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.”

“As a result of our strong performance and positive outlook for the remainder of fiscal 2017, we are increasing our expectations for fiscal 2017 earnings per share to be in a range from $3.33 to $3.43. We look forward to delivering strong fiscal 2017 performance and believe we are well positioned for fiscal 2018, as evidenced by our strong backlogs, positive sentiment in our markets and the strength of our people.”

Vertikal Comment

This is an excellent set of numbers from JLG at least in terms of aerial lift sales. The continuing fall in telehandler sales is a little surprising, although what we do not know is how much of this relates to the cut back in the European telehandler programme, or how much might be related to changes in the CAT programme?

JLG is the clear telehandler market leader in North America, but has almost no market share in Europe. Its two main competitors JCB and Manitou are of course dominant in Europe, and also have substantial footholds in North America. If JLG has long term global aspirations in this market it almost certainly needs to look at an acquisition. While good candidates might seem to be in short supply there is certainly one bold move and at least one more regional candidate.

When it comes to aerial lifts though the company is doing well – keeping up with mid-range players like Skyjack and Haulotte and apparently opening the gap with its main rival Genie. After a bumpy start it looks as though the companywill end the fiscal year on a high.