JLG sales level off as market weakness continues
29 April 2010
JLG Industries' sales to external customers rose by 1.5% to US$252.9 million for the second quarter of the Oshkosh Corp fiscal year. These figures exclude $737.2 million worth of inter-company sales related to JLG's production of military vehicles for its parent company.
The access division made an operating profit of $46.1 million for the quarter compared to an operating loss (excluding exceptional charges) of $49.1 million for the same period in 2009.
Oshkosh said the slight increase in access sales was primarily related to foreign currency gains and that "relatively strong demand in South America and the Pacific Rim, including Australia, was more than offset by continued weakness in North America and Europe, Africa and the Middle East due to weak construction markets and tight credit."
Oshkosh has a group is benefitting from continued orders for its defence related products which are being used by the US military in Afghanistan. The company recorded net sales of $2.86 billion (up from $1.24 billion in 2009) and net profits of $292.6 million.
"We delivered record results in the second quarter of fiscal 2010 as our defence segment performed exceptionally well driven by continued strong deliveries of M-ATVs for our warfighters in Afghanistan," said Robert Bohn, Oshkosh chief executive officer."
Mr Bohn said Oshkosh expected continued soft markets in its non-defence businesses; "We continue to invest in lean initiatives to mitigate the effects of the soft markets and streamline operations for fiscal 2011 when we believe these markets will be stronger".