Gehl Co. last week reported 2007 income from continuing operations of $24.9 million, or $2.00 per diluted share, on net sales of $457.6 million, compared to $28.1 million and $2.26 per diluted share in 2006. Fourth-quarter income from continuing operations of $4.7 million, or $0.38 per diluted share, on net sales of $102.2 million.
Net sales for full year 2007 were $457.6 million compared with $486.2 million for 2006, a decrease of 6 percent. Sales outside of the United States were $131.0 million, or 29 percent of total company sales for 2007, an increase of 31 percent versus 2006. Continuation of market share gains in the company’s two primary product categories, skid loaders and telehandlers, strong agricultural markets and growth of the company’s international distribution footprint partially offset the impact of weaker North American residential construction activity and lower capital investments by equipment rental companies.
“We are pleased to report significant improvement in the company’s performance in difficult domestic markets, as reflected by our continued market share gains,” said William Gehl, chairman and CEO. “Gross margin expansion and the growth of our international sales are positive developments reflecting our global compact equipment strategy, investments in product research and development and continued emphasis on cost reductions.”
The company does not anticipate that North American housing conditions will improve appreciably in 2008. While it anticipated continued growth in the international markets, current forecasts anticipate that the North American compact equipment markets will decline 10 to 30 percent in 2008, varying by product category. Gehl expects 2008 net sales to be in the range of $405 million to $425 million.
West Bend, Wis.-based Gehl Co. is a global manufacturer of compact equipment for construction and agricultural markets.