JLG Improves Operating Income in First Quarter of Fiscal 2017
JLG, the access equipment segment of Oshkosh Corp., posted an operating income increase of 19.2 percent to $24.4 million, or 5 percent of sales, in the fiscal first quarter of 2017, compared to $20.4 million or 3.9 percent of sales in the first quarter of fiscal 2016. JLG reported net sales of $489.2 million in the first quarter of fiscal 2017, a 7.7-percent decline, which was primarily because of lower sales volumes in North America and Europe.
The timing of new product development spending and favorable product mix more than offset the impact of lower sales.
Oshkosh Corp. president and CEO Wilson Jones addressed the company’s recent decision to close facilities in Ohio, Belgium and the U.K.
“As part of simplification activities in support of the company’s MOVE strategy, we are also announcing plans to rationalize operations in our access equipment segment by consolidating our manufacturing footprint in Europe and the United States,” said Jones. “In addition, we are streamlining telehandler offerings to a reduced range in Europe to simplify our portfolio. These are difficult actions, but we believe they are necessary to position our company for long-term success. Once fully implemented, we expect these actions to generate $20 million to $25 million of annual pre-tax savings.”
The plans include the closure of JLG’s manufacturing plant and pre-delivery inspection facilities in Belgium, the streamlining of telehandler product offerings to a reduced range in Europe, the transfer of remaining European telehandler manufacturing to the company’s facility in Romania and reductions in engineering staff supporting European telehandlers, including the U.K.-based engineering facility. Also in the United States, telehandler production is being moved from Orrville, Ohio, to facilities in Pennsylvania.
