Housing hampers Gehl
By Chris Sleight28 July 2008
Gehl saw its sales for the first half of the year fall -33% compared to 2007 due to the sharp downturn in US residential construction. Operating profit for the compact equipment specialist was down -59% to US$ 10.1 million for the first half of the year.
Commenting on the results, a company statement said, "Continued market share gains, along with the strength of the company's international and agricultural markets in the second quarter partially offset the impact of the continued softness in the North American housing market and reductions in capital investments by equipment rental companies."
Gehl went on to say that its sales outside North America remained strong, representing 30% of its revenues in the second quarter of the year. This was an increase on April to June 2007, when 26% of its revenues came from overseas sales.It also said that it had increased its market share despite difficult conditions. According to Gehl, its skid steer loader sales were down just -=1% for the quarter, compared to the same period in 2007, but that the market as a whole was down -10% for the same period. Similarly its telehandler volume was down -14% against a market decline of -23%.