Sales up at JLG in first quarter
By Euan Youdale28 January 2014
Sales at JLG increased 15% to US$668.6 million in the first quarter of its 2014 financial year, compared to the same period last year.
The improvement was primarily driven by increased fleet replacement in North America and Europe, said the company, as well as favourable pricing. "This was offset in part by the absence of US military telehandler sales under a contract that was completed in the fourth quarter of the 2013 financial year," said a company spokesperson.
Sales of access equipment, excluding US military contract sales, rose 17.2% in the first quarter. “The increase in aerial work platform unit volumes in North America was due in part to the acceleration of some orders ahead of Tier 4 engine price increases,” added the spokesperson.
JLG’s operating income increased 84.6% to $90.3 million, or 13.5% of sales, compared to the first quarter 2013 operating income, which stood at $48.9 million, or 8.4% of sales.
“The increase in operating income was primarily the result of favourable product mix due to a higher concentration of aerial work platform sales, higher sales volume and the realisation of previously announced price increases,” added the spokesperson.
JLG’s results in the first quarter also benefited from a $7.5 million multi-year US military contract.
Parent company Oshkosh Corporation said its overall income increase was thanks to the performance of JLG. Its consolidated operating income rose to $96.5 million in the first quarter, or 6.3% of sales, compared to $80.3 million, or 4.6% of sales, in the first quarter of fiscal 2013.
“On-going strength in our access equipment segment, led by continued replacement demand in North America, offset the expected decline in our defence segment operating income,” said Charles Szews, Oshkosh Corporation chief executive officer.
“European rental companies also began placing orders for access equipment earlier in our fiscal year than in recent years, which could indicate a stronger recovery for access equipment in Europe in fiscal 2014 than previously expected.”
However, group consolidated net sales saw a decrease of 12.6% to $1.53 billion. Higher sales in each of the company’s non-defence segments were more than offset by lower defence segment sales, said the company.