Sales up at JLG despite pressures in Australia

JLG’s sales increased 7.5% to $817.4 million in the second quarter of its 2013 financial year, compared to same period in 2012.

Parent company Oshkosh Corporation said the increase was primarily the result of higher replacement demand for telehandlers in North America, the realisation of previously announced price increases and higher aftermarket parts and service sales.

This was offset, in part, by lower sales in Australia, due to a pause in purchases by a major customer and a slowdown in mining and energy activity.

JLG’s operating income increased 38.9% in the second quarter to $95.0 million, or 11.6% of sales, compared to the same period last year, which had an operating income of $68.4 million, or 9% of sales.

Apart from higher sales of telehandlers, the company said the increase in operating income also derived from the realisation of previously announced price increases and benefits from its MOVE initiative to optimise cost structures.

"The Oshkosh team executed well in our second fiscal quarter. All four of our business segments delivered improved operating income margins compared to the prior year quarter, resulting in a more than doubling of our diluted earnings per share to $0.96," said Charles Szews, Oshkosh Corporation chief executive officer. “Our access equipment segment continued to benefit from replacement driven demand and improved pricing.”

Overall the group reported second quarter net income of $85.4 million, compared to $42.8 million in the second quarter of 2012.

However, consolidated net sales for the group were $1.98 billion, a decline of 3.8% compared to 2012. Higher sales in all non-defence segments were not sufficient to offset an expected decline in defence segment sales, said the company.

Despite this, the company's forecasts for the year have improved. “As a result of its second fiscal quarter results and the company’s outlook for the remainder of the fiscal year, the company is increasing its outlook range for full-year fiscal 2013 adjusted earnings,” said a company spokesman.

Full-year adjusted operations are expected to be $2.90 - $3.15 per share. This estimate excludes $0.11 per share net of tax costs incurred in the first quarter of fiscal 2013 related to the tender offer for the company’s common stock and threatened proxy contest.