JLG’s second quarter net sales dropped 29.8% to $693 million, the company reported. Aerial work platforms sales saw the steepest decline, falling 40.9% to $273.7 million, while telehandler sales decreased 31.8% to $217.6 million.
Parent company Oshkosh said the decrease in sales was due to lower market demand, global economic shutdowns as a result of Covid-19 and, “to a lesser extent, rental company customers slowing down their capital expenditures after two years of strong fleet growth.” The company is implementing a cost-savings reduction plan of $80 million to $100 million, which includes lowering salaries, with executives and board members taking larger decreases; furloughs; temporary plant shutdowns; reduced travel expenses and project and other discretionary spending reductions.
“Oshkosh delivers essential products and services and we have large customer backlogs in both our defense and fire & emergency segments, providing good visibility for these businesses well into fiscal 2021,” said Wilson R. Jones, Oshkosh Corp. president and CEO. “Despite excellent visibility in these two segments, we are facing uncertain demand in the access equipment and commercial segments as well as potential disruptions with supply chain continuity and team member availability in all of our segments. Our integrated supply chain is collaborating across the world to pursue alternatives with our supply partners and communicate frequently with our people to mitigate these risks.”
JLG’s operating income in the second quarter of fiscal 2020 decreased 40.9 percent to $70.8 million, or 10.2 percent of sales, compared to $119.8 million, or 12.1 percent of sales, in the second quarter of fiscal 2019.
The company’s half-year results showed a decline of 22.2% for the total access segment.
Speaking to cost reductions, Jones added, “We believe these are the right actions for our Company as we stay nimble and close to our team members, customers and suppliers. Our balance sheet is strong and our liquidity of approximately $1.2 billion at March 31 positions us well to navigate through the global pandemic. I am confident that Oshkosh will emerge stronger as we work to get to the other side of this global crisis.”
As a whole, Oshkosh reported net income of $68.6 million, a decrease of 46.6% compared to the second quarter of fiscal 2019.