JLG sales up in second quarter despite currency challenges
By Lindsey Anderson28 April 2015
JLG’s sales increased 13.4 percent to $981.8 million in the second quarter of its financial year; the result of increased sales in all regions except Latin America, the company said. Despite these gains, the strengthening of the U.S. dollar negatively impacted JLG’s sales by $26.5 million. On a constant currency basis, sales increased 16.4 percent.
“Sales and operating income were higher in each of our non-defense segments, reflecting the continued recovery of those markets and the execution of our MOVE strategy,” said Charles Szews, Oshkosh Corp. chief executive officer. Oshkosh is the parent company of JLG. “The improved operating results in our non-defense segments helped to mitigate much of the impact of significantly lower defense segment sales and earnings.”
For JLG, its operating income increased 17.4 percent to $136.9 million, or 13.9 percent of sales, for the second quarter of fiscal 2015 compared to $116.6 million, or 13.5 percent of sales, in the second quarter of fiscal 2014.
“The increase in operating income was primarily the result of higher sales volume and a favorable vendor recovery settlement, offset in part by an adverse product mix and unfavorable currency impacts of $3.3 million,” the company said.
“We expect to deliver strong second half results as we enter the seasonally busy construction season, resume FHTV sales in the fourth quarter, and continue to execute our MOVE strategy,” said Szews. “Our solid first half performance and positive outlook for the second half of the fiscal year give us confidence in sustaining our fiscal 2015 full year adjusted earnings per share estimate range of $4 to $4.25.”
As a whole, Oshkosh consolidated net sales in the second quarter of fiscal 2015 were $1.55 billion, a decrease of 7.4 percent. The company said significantly lower defense segment sales were offset in part by improved demand in the company’s non-defense segments.