Second Quarter Numbers Paint Promising Picture

August 4, 2005 • With all of the second quarter financial information starting to make its way to the public and press, several companies have begun to announce Q2 earnings. Amidst this group, there seems to be an underlying theme carrying over in statement after statement: The second quarter was better than the first with most companies posting record sales and profits. Check out the following highlights from several companies to see how the lifting equipment industry fared this quarter, and watch www.liftandaccess.com for the latest financial news updated between issues of Lift and Access 360 e-magazine.

• Gehl Co., West Bend, Wis., reported record quarterly net sales of $138.2 million for the quarter ended July 2, 2005 — an increase of $42.7 million, or 45%, from 2004 second quarter net sales of $95.5 million. Net income for the quarter was $5.6 million, or $.80 per share, compared to net income of $3.9 million, or $.69 per share, earned in the second quarter of 2004. Net income for the quarter was negatively impacted by a one-time after-tax warranty charge of $1.5 million, or $.21 per share, associated with purchased components that the company incorporated into one of its product lines. Gehl anticipates recovering a substantial portion of its costs associated with the warranty charge from its suppliers.
  
  
• Caterpillar Inc., Peoria, Ill., reported record second quarter sales and revenues of $9.4 billion and record profit of $760 million, or $1.08 per share. First half of the year results were also records, with company sales and revenues of $17.7 billion and profit of $1.3 billion, or $1.89 per share. Sales and revenues of $9.4 billion were up $1.8 billion, or 23%, compared to $7.6 billion in the second quarter of 2004. Improving sales volume and price realization drove the increase in sales and revenues. Profit of $760 million, or $1.08 a share, was up 34% compared to profit of $566 million in the second quarter of 2004. The main contributors were improved price realization and sales volume, partially offset by higher core operating costs, about half of which were material costs.
  
  
• Revenues for Ingersoll-Rand, Montvale, N.J., revenues increased by 13% to $2,759.5 million in the second quarter with organic revenues (excluding acquisitions) increasing by 10%. Second-quarter 2005 diluted earnings per share of $1.67 exceeded previous guidance, increasing by 26%. Full-year diluted EPS forecast increased to $5.75 to $5.90 from $5.55 to $5.75.
  
  
• The Manitowoc Co., Manitowoc, Wis., reported record net sales and earnings for the second quarter ended June 30, 2005. Net sales increased 17% to $617 million, from $526.2 million during the second quarter of 2004. Reflecting the increased share count from the company's common stock offering in December 2004, earnings per diluted share were $0.78 for the second quarter of 2005 and $0.56 for the second quarter of 2004 • a 44% increase. Excluding a special charge related to debt extinguishment from the second quarter of 2005 and charges for restructuring from 2004, earnings per diluted share from continuing operations increased 43% to $0.80 for the 2005 period from $0.56 for the comparable period in 2004.