JLG sales fall 69% in quarter to 31 March

JLG Industries made a US$49.1 million operating loss on sales of $249.2 million for the three months to 31 March. Sales were down 69% from the $813.1 million revenues of the same period in 2008 and the loss increases to $941.6 million with the inclusion of asset impairment charges of $892.5 made on JLG during the quarter.

The decrease in JLG's sales is of the same order of magnitude as those reported last week by its main competitors, Haulotte Group (61% down, although that includes a €6 million contribution from Bil-jax) and Terex's AWP division (65.6% down). The dramatic falls reflect not just the low level of sales in the current period but also the record high volumes being reported at the start of 2008.

JLG's parent, Oshkosh, said JLG's sales in Europe, Africa and the Middle East fell about 80%, while sales elsewhere, including North America, were down 70%. JLG's pre-impairment loss of $49.1 million compares with the $123.6 million profit posted by the company in the same period in 2008. JLG's backlog on 31 March this year was $98.5 million compared to $905.d million in 2008.

"Our defense, Pierce fire apparatus and airport products businesses all delivered double-digit revenue increases and higher operating income in the second quarter," said Robert G. Bohn, chairman and chief executive officer of Oshkosh Corp, "These gains and significant additional cost reduction actions implemented in the quarter were not enough to overcome sharply lower demand at a number of our other businesses, particularly those serving construction-related markets, like our access equipment and concrete placement businesses."

Overall sales at Oshkosh were down 27$ to $1.295 billion, with a net loss of $17.7 million, excluding the impact of the total impairment charges of $1.2 billion.

Mr Bohn said that Oshkosh had implemented further cost reduction actions that would increase fiscal 2009 savings from $150 to $200 million; "While the global recession has had a significant impact on several of our businesses, we have been working diligently to manage through this challenging environment.

"Even with these aggressive actions, the effects of the global recession and credit crisis lead us to believe Oshkosh will record a net loss for the full fiscal year, excluding the impact of the impairment charges recorded in the second fiscal quarter."