JLG Q3 results show strong return of demand
By Lindsey Anderson29 July 2021
JLG’s Q3 sales were up 89.4% to $924.3 million for the three months ending June 30, the company reported. Sales were impacted by strong return of demand led by the North American market, with JLG noting “fleet age and strong utilization” were leading factors alongside a “healthy rental market” and a substantial backlog of $1.75 billion, up 214% year-over-year.
Sales of aerial work platforms amounted to $450.9 million for JLG, while telehandler sales totaled $233.5 million. In Q3 of 2019, JLG’s access sales totaled $664.2 million while telehandler sales were $358.9 million.
Access equipment operating income in the third quarter increased 237.3% to $113 million, or 12.2% of sales, compared to $33.5 million, or 6.9% of sales, in the third quarter of fiscal 2020. JLG said the increase in operating income was primarily due to the impact of higher sales volume and lower restructuring-related costs, offset in part by higher incentive compensation costs, higher material costs and adverse mix.
Parent company Oshkosh also raised its full-year forecast, with total revenues of $7.8 billion expected, led by access equipment sales, the company said. JLG’s FY sales are estimated to be $3.2 billion, or 41% of Oshkosh’s total revenues.
JLG said it believes the “access market is in early stages of multi-year growth cycle,” with John C. Pfeifer, Oshkosh Corporation president and chief executive officer, stating, “...we are pleased with growing demand for access equipment, which we believe will remain strong for the foreseeable future.”
Despite the positive results, JLG noted supply chain issues impacted Q3 production.
“I’m proud of the focus shown by Oshkosh team members who persevered through a challenging supply chain environment to deliver solid sales and adjusted earnings per share of $2.09 during the third fiscal quarter,” Pfeifer said. “It’s no secret that global supply chain disruption and access to labor are presenting a challenge to industries around the globe, and our people have executed effectively to deliver strong results.”
Overall, Oshkosh’s consolidated net sales in the third quarter of 2021 increased 39.7% to $2.21 billion as a result of higher sales in all segments.
KHL will update this story as more market information becomes available.