01.02.2008

JLG revenues up 19%

JLG revenues for its first fiscal quarter 2007/2008 increased by almost 19 percent to $610.5 million, while operating income was $61.1 million, or 10 percent of sales, this compares with an operating income of $62 million and 11.5 percent in JLG’s last full quarter (Qtr to Nov 2006) as an independent company.

The sales growth reflected substantially higher demand internationally, offset in part by slower telehandler sales in North America. Operating income in the first quarter benefited from the higher revenues, favorable product mix and favorable foreign exchange rates. The company’s order book fell back by 22 percent to $923 million

Oshkosh group sales increased 49 percent to just under $1.5 billion, largely driven by the addition of JLG revenues, although sales in the defense business were up by 28 percent. Only 25 days of JLG sales were included in last years first quarter.

Pre-tax profit for the period fell by just over 15 percent to $53.3 million due to costs involved in the JLG acquisition and higher interest costs involved with the higher debt levels required to purchase JLG.

Outlook
Oshkosh is forecasting an increase in sales and earnings for the year as a whole driven by continuing strong performance from JLG and its defense business offset in part by weaker performances from the fire & emergency and commercial vehicle segments.

Robert G. Bohn, Oshkosh chairman and chief executive officer said "We've just completed our first full year of ownership of JLG Industries and we couldn't be happier with its positive impact on the Oshkosh family. Our access equipment segment continued to deliver double-digit sales growth with its dynamic products, driven by demand in international markets.”

"Our defense business continues to deliver impressive growth as well. New and remanufactured truck production helped defense sales grow by 27.8 percent during the quarter."

"While we expect a double digit increase in earnings for the Company overall in fiscal 2008, we are facing significant headwinds in our commercial and fire & emergency segments. Our concrete mixer business is operating at sharply reduced levels due to the slowdown in residential construction and the after effects of the pre-buy in advance of the 2007 diesel engine emissions standards changes.”

"Oshkosh is meeting weak market conditions head on by investing in global initiatives to improve distribution in key international growth markets and reducing costs across all businesses. This permits us to maintain our positive outlook for fiscal 2008."