JLG Announces Q1 Earnings

November 17, 2005 — JLG Industries, Inc., McConnellsburg, Pa., reported consolidated revenues of $478 million for its fiscal first quarter ended October 30, 2005, an increase of 56 percent from the same prior year period. Sales increased 49 percent in the United States and 81 percent internationally, year-over-year. Net income was $27.9 million, or $0.53 per diluted share, compared with a net loss of $8.7 million, or $0.20 per diluted share, for the prior year period.

"Our revenues reached a new record for the quarter, reflecting the continuing strength of demand for access products," said Bill Lasky, chairman of the board, president and CEO. "We're building products at a record pace, and component deliveries from suppliers have improved dramatically. Our order board at quarter end increased to $849 million sequentially from $631 million last quarter, and is up substantially from $200 million last year."

According to Lasky, costs associated with raw materials, such as steel, are being managed through pricing actions and ongoing cost reduction activities. However, price increases may be on the horizon. “Despite recent reductions in the price of oil, the cost of freight and petroleum-based components are increasing, so an additional price increase of perhaps a couple of percentage points will be considered at the beginning of calendar year 2006,” he said.

 

Lasky added that JLG is particularly pleased with its new alliance with Caterpillar to supply Cat-branded telehandlers. Due to the alliance, JLG projects revenue growth in the 20 to 25 percent range for fiscal 2006 over 2005. In additon to the $16 million in design and capital investments, this projection continues to include investments in strategic initiatives of approximately $30 million, such as $15 million for the expansion of our ServicePLUS operations, formation of the Commercial Solutions Group, reopening of the Bedford facility, Atlas II military telehandler development, and other proprietary projects.

Operating income also improved to $50.4 million, or 10.5 percent of revenues, compared to an operating loss of $8.3 million, or negative 2.7 percent of revenues for the prior period. According to Jim Woodward, executive vice president and chief financial officer, the improvement represents an incremental operating margin of 34 percent reflecting realization of our previous pricing actions, cost reduction efforts, a favorable adjustment in inbound freight costs and a very favorable sales mix." Woodward said since JLG's last update, "we have been able to increase production schedules for selected models where capacity was still available, and divert planned additions to our rental fleet to sales."