Mixed first quarter for JLG
By Euan Youdale27 January 2015
JLG’s sales increased 7.2% to $716.7 million in the first quarter of its financial year; the result of an increase in telehandler orders in North America, offset in part by lower aerial work platform production.
“The increase in North American telehandler sales was due in part to shipments ahead of price increases related to Tier 4 engine emissions changes," said a company spokesperson, "Similarly, price increases related to Tier 4 engine emissions changes for aerial work platforms drove higher demand for those products in the first quarter of fiscal 2014.”
While North America provided the majority of sales increase in the first quarter of fiscal 2015, the segment experienced higher volumes in all regions of the world except Latin America.
Despite this, JLG's operating income decreased 14.5% to $77.2 million, or 10.8% of sales, for the first quarter of the 2015 financial year, compared to US$90.3 million, or 13.5% of sales, in the first quarter of fiscal 2014.
According to the manufacturer, which is part of Oshkosh Corporation, the decrease in operating income was, “primarily the result of adverse product mix, increased new product development spending and higher operating costs in support of ongoing MOVE initiatives, offset in part by higher sales volume.”
Results in the last financial year also benefited by $7.5 million following a multi-year US military contract pricing agreement.
Oshkosh group consolidated net sales were $1.35 billion in the first quarter, a decrease of 11.6 %, while consolidated operating income was $65.7 million, or 4.9% of sales, compared to $96.5 million, or 6.3% of sales, in the same period last year.
Charles Szews, Oshkosh Corporation CEO, said, “We continued to experience, as expected, significantly lower defense segment sales in the quarter due to lower US Department of Defense spending for tactical wheeled vehicles. However, we finished the quarter with strong orders and higher backlogs in all of our non-defense segments compared with the first quarter of fiscal 2014, which we believe is a positive reflection of our non-defense customers’ expectations for 2015.
Mr Szews added, “As a result of our positive outlook and stronger than expected first quarter performance, we are maintaining our full year 2015 adjusted earnings per share estimate range of $4.00 to $4.25, in spite of some foreign currency related earnings headwinds that we expect to face.”