Rise continues at JLG
By Euan Youdale29 April 2014
JLG’s operating income increased 22.7% to $116.6 million, or 13.5% of sales in the second quarter, compared to $95.0 million, or 11.6% of sales in the same period last year.
The rise was mainly due to higher sales volumes and the favourable impact of cost reduction initiatives and pricing, said the company, offset in part by increased new product development spending.
Parent company Oshkosh Corporation said JLG sales were up 5.9% to US$866 million. “The improvement was principally the result of higher unit volumes, improved aftermarket parts and service sales and favourable pricing,” said a company spokesperson, “Offset in part by the absence of US military telehandler sales under a contract that was completed in the fourth quarter of fiscal 2013.”
Sales of access equipment, excluding US military contract sales, rose 9.3% in the second quarter, overcoming the impact of severe weather experienced in the US over recent months.
“We are optimistic about our outlook for the second half of fiscal 2014. US construction spending has continued to slowly improve,” said Charles Szews, Oshkosh Corporation chief executive officer. “We are also seeing positive trends outside the US as international orders for the first six months of fiscal 2014 grew at a double digit rate in our access equipment segment. This is encouraging as we seek to broaden our sales across the globe.”
Mr Szews added, “We recently participated in several successful trade shows for our non-defence businesses where we launched a large number of new products that we believe will improve performance for our customers.”
Group consolidated net sales were $1.68 billion, a decrease of 15.4%. The significantly lower defence segment sales were offset in part by improved demand in the JLG, its access equipment segment. “Our defence segment performance remained in line with our previously communicated expectations,” said Mr Szews. “We recently announced plans to reduce our defence segment workforce this summer, while still maintaining the experience and expertise necessary to support existing programmes and to successfully compete for numerous tactical wheeled vehicle sales opportunities globally.
“We expect to be able to announce positive results on some of these opportunities over the next 12 to 24 months.”