Sales up at JLG despite slow Australian market, impairment charges

31 October 2013

Access manufacturer JLG Industries, Inc., reported an increase in sales by 8.9 percent to $780.6 million for the fourth quarter of fiscal 2013 compared to the prior year fourth quarter.

Parent company Oshkosh said the increase was principally the result of higher unit volumes in North America, the realization of previously announced price increases and higher aftermarket parts and service sales, which more than offset lower sales volume in Australia.

For JLG, operating income increased 36.6 percent to $81.2 million, or 10.4 percent of sales, compared to prior year fourth quarter operating income of $59.5 million, or 8.3 percent of sales. Included in access equipment results for the fourth quarter of fiscal 2013 was a $9.0 million non-cash impairment charge related to an intangible asset. Excluding the impairment charge, adjusted operating income in the fourth quarter of fiscal 2013 was $90.2 million, or 11.6 percent of sales.

"We delivered fourth quarter results that exceeded the high end of our most recently announced estimated earnings range, finishing up a year that significantly exceeded our initial expectations," said Charles L. Szews, Oshkosh Corp. chief executive officer. "Continued strong demand for access equipment in North America and improved demand for concrete mixers in the U.S. partially offset a significant sales decline in our defense segment in the fourth quarter.

"The power of the Company's MOVE strategy was evident in fiscal 2013, as each non-defense segment - access equipment, fire and emergency and commercial - increased operating income margins over the prior year. We believe we are on track to achieve our fiscal 2015 earnings per share target range of $4.00 to $4.50.”

Overall, Oshkosh reported fiscal 2013 fourth quarter net incomes of $35.7 million, or $0.40 per diluted share, compared to $83.7 million, or $0.91 per diluted share, in the fourth quarter of fiscal 2012.

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