JLG Boosts Sales 61 Percent in Fiscal Second Quarter

April 27, 2012
Oshkosh Corp. posted consolidated net sales in the second quarter of fiscal 2012 of $2.08 billion an increase of 18.9 percent compared to the prior year second quarter, with sales of access equipment from JLG Industries soaring 61.4 percent year over year to $760.4 million.

Oshkosh Corp. posted consolidated net sales in the second quarter of fiscal 2012 of $2.08 billion an increase of 18.9 percent compared to the prior year second quarter, with sales of access equipment from JLG Industries soaring 61.4 percent year over year to $760.4 million. Sales grew by double-digit percentages compared to the prior year quarter in all major international regions, with the largest increase in North America driven largely by replacement of aged equipment.

In the fiscal second quarter, access equipment segment operating income jumped 285.3 percent to $68.4 million, or 9 percent of sales, compared to the previous year’s total of $17.7 million or 3.8 percent of sales. The increase in operating results reflected higher volume, the realization of previously announced price increases, improved product mix and improved absorption related to higher sales volume, offset in part by higher raw material costs and higher new product development spending.

“Strong performance by our access equipment segment drove quarter results above our expectations,” said Charles Szews, Oshkosh Corp. president and CEO. “We believe customer actions and industry metrics point to a sustained recovery in global access equipment markets. Our success in responding to this recovery enables us to raise our performance outlook for the full fiscal year 2012.”

Szews pointed out to an investor conference call that the strong recovery in the aerial market in North America is occurring without a measurable recovery in construction activity. “When construction activity does begin to recover meaningfully, and I believe it will, we expect this will help extend the positive trend in this market.”

Szews said the company ended the quarter with a backlog of more than $941 million in aerial equipment, positioning the company to a strong finish to fiscal 2012.

David Sagehorn, executive vice president and chief financial officer for Oshkosh told the conference call that the company has increased its expectation for the access equipment segment sales to 35 to 40 percent, compared to its previous estimate of 25 to 30 percent. “Stronger than expected orders and sales in the second quarter led us to increase our sales outlook for the year,” Sagehorn said.

JLG Industries, a division of Oshkosh Corp., is based in McConnellsburg, Pa.