McConnellsburg, Pa.-based JLG Industries last week announced that its 2007 fiscal first-quarter consolidated revenues were $539 million compared to $478 million during the same period last year, a 12.7-percent increase. Net income for the quarter totaled $40 million, or 37 cents per share, versus $28 million, or 27 cents per share, for the fiscal first-quarter of 2006, a 42.9-percent hike.
Operating income was $62 million, or 11.5 percent of sales, compared to $50 million, or 10.5 percent, during the same period last year. Cash and cash equivalents were $308 million at Oct. 29, compared to $231 million a year ago.
Fiscal first-quarter 2007 net income included $4.1 million ($2.6 million net of tax), or 2 cents per share, of charges related to the proposed merger with a subsidiary of Oshkosh Truck Corp.
“For the fourth consecutive year, we have produced record first-quarter revenues despite recent consolidation in the equipment rental industry which has altered ordering patterns for some of our larger customers,” said Bill Lasky, chairman of the board, president and CEO. “Demand for our products continues to mirror the strength in non-residential construction activity as our order board grew sequentially to $845 million from $749 million at the end of July. In addition, we are now shipping Caterpillar-branded telehandlers to Cat dealers around the world and expect this business to grow during the year as we ramp up to full production under the exclusive 20-year private label Alliance agreement.”
“Excluding the $4.1 million of charges related to the proposed merger with a subsidiary of Oshkosh Truck Corporation, our incremental operating margin was 26 percent reflecting the effect of our ongoing cost reduction initiatives as well as an improved sales mix,” said Jim Woodward, executive vice president and chief financial officer. “In addition, a lower effective tax rate contributed to the increase in net income.”
Woodward said the company now expects that its fiscal 2007 revenue growth will be toward the upper end of the previously announced range of 20 to 25 percent greater than the company’s 2006 revenue level of $2.3 billion.
“On that basis, we are forecasting earnings per share to be in a range from $1.82 to $1.92,” Woodward said. “This revised earnings guidance includes $4.1 million in merger-related expenses incurred during the first quarter, but does not include any other expenses that may be incurred in completing or terminating the merger. Our previous guidance of $1.72 to $1.82 did not assume any merger-related expenses.”
JLG Industries said it will hold a special meeting of shareholders Dec. 4 to consider and vote on a proposal to approve the agreement and plan of merger among the company, Oshkosh Truck Corp. and its subsidiary, whereby JLG will become a wholly owned subsidiary of Oshkosh. JLG has mailed the definitive proxy statement and other related materials to its shareholders of record as of Nov. 3, in connection with this meeting.
JLG Industries is a leading producer of access equipment, including aerial work platforms and telehandlers. The company’s diverse product portfolio encompasses brands such as JLG aerial work platforms; JLG, SkyTrak, Lull and Gradall telehandlers; and an array of complementary accessories designed to increase the versatility and efficiency of these products for end users.
