JLG Industries last week announced record consolidated financial results for its fiscal fourth quarter and full year ended July 31.
The McConnellsburg, Pa.-based manufacturer of aerial work platforms and telehandlers posted 32 percent revenue growth and earnings improvement of 161 percent for fiscal year 2006, and revenue growth of 21 percent during the fourth quarter.
Consolidated revenues for the full year were $2.3 billion, up from $1.7 billion in 2005. Net income was $149 million, or $1.40 per share, compared to $57 million or 60 per share in fiscal 2005. The 2006 results include a one-time pre-tax gain of $14.6 million ($8.8 million net of tax) or 8 cents per share, from its sale of the Gradall excavator business during the third quarter, and $1.9 million from the early extinguishments of debt.
Operating income for the year was $263 million, 11.4 percent of revenues, compared to $120 million, or 6.9 percent of revenues in fiscal 2005.
Fourth-quarter revenues were $688 million, compared to $570 million during the same period in 2005. The 21 percent increase was primarily because of sustained strong demand for access equipment as new machine revenues rose 25 percent. Earnings for the quarter totaled $48 million, or 45 cents per share, compared to $36 million, or 35 cents per share, during 2005’s fourth quarter. Operating income for the quarter was $78 million, or 11.4 percent of sales, compared to $60 million, or 10.5 percent, during the same period in 2005.
“Along with achieving new records for both quarterly and full-year revenues and earnings, we achieved other significant milestones in 2006,” said Bill Lasky, chairman of the board, president and CEO. “We completed our manufacturing realignment and capacity expansion in preparation for the Caterpillar alliance and a projected increase in demand for JLG access equipment. Shipments of Caterpillar-branded telehandlers to European dealers began in late July and we will begin shipping to North American dealers in November under our exclusive 20-year private label alliance agreement. Despite some economic uncertainly and reduced residential construction activity, non-residential construction projections continue to be robust into calendar 2007. Combined with increased international activity and the new Caterpillar volume, this will continue to drive demand for JLG access products.”
Executive vice president and chief financial officer Jim Woodward was bullish about the company’s prospects for 2007. “Demand for our products remained strong in the fourth quarter, continuing the pattern we have seen throughout fiscal 2006,” he said. “As a result, our earnings quality improved significantly despite the additional expenses associated with our Caterpillar alliance preparations and other strategic initiatives.
“We anticipate continued strong demand in fiscal 2007 and project revenue growth to be 20 to 25 percent greater than our record fiscal 2006 level of $2.3 billion. With a substantial portion of our manufacturing realignment and capacity expansion behind us, and the start-up of shipments under the new Caterpillar alliance, we expect fiscal 2007 earnings per share to be in a range of $1.72 to $1.82.”
