27.01.2022

JLG sales jump 48%

JLG has reported record sales for the quarter ending December 31, while profits lagged behind a little.

Total revenues for the quarter, which will take JLG and parent Oshkosh onto a calendar fiscal year for 2022, were $833.3 million, an increase of almost 48 percent on the same period last year. This was made up as follows:
New aerial lift sales of $415.3 million an increase of more than 49 percent, while Telehandler sales improved 71 percent to $210.6 million and Other revenues - mostly parts, service and used equipment sales - increased by more than 28 percent to $207.4 million.

Operating profit was $32.3 million, an rise of more than 29 percent, but last year’s results included more than $8 million of restructuring charges, without them the operating profit declined slightly. Most of the increases are said to have come from higher demand in North America.

The order book at the end of December was $3.57 billion, compared to $771.5 million at the same point in 2020.

Oshkosh reported sales almost 14 percent higher at $1.79 billion, but pre-tax profits declined from $69.8 million this time last year to just $600,000 in the latest quarter, mostly due to a dramatically lower gross profit - a result of higher material & logistics costs, unfavourable cumulative catch-up adjustments on contracts in the Defence business and unfavourable product mix.

Vertikal Comment

This is a very positive result from JLG however it is clear that rising costs and supply chain problems are having an impact. The company is now sitting on an order book roughly equivalent to its annual revenues. This almost certainly means that it is losing business, with the long lead times possibly accelerating the uptake of Chinese built aerial lifts. It will be interesting to see how this plays out.