Gehl Reports Record Quarterly Sales

August 2, 2006 -- Gehl Co., West Bend, Wis., recently reported all-time record quarterly net sales from continuing operations of $139.5 million for the quarter ended June 30, 2006 -- an increase of 9% from 2005 second quarter net sales from continuing operations of $128.3 million. All-time record quarterly income from continuing operations was $9.4 million, or $.75 per diluted share, for the second quarter of 2006 compared with income from continuing operations of $5.8 million, or $.55 per diluted share, for the second quarter of 2005. Second quarter 2005 income from continuing operations included a $1.5 million after-tax warranty charge, or $.14 per diluted share. This warranty charge was reversed, in full, in the 2005 fourth quarter.

 

For the first six months of 2006, Gehl reported net sales from continuing operations of $261.6 million, an increase of 10% from 2005 first six month net sales from continuing operations of $237.2 million. Income from continuing operations was $15.8 million, or $1.27 per diluted share, for the first six months of 2006 compared to $10.7 million, or $1.02 per diluted share, for the first six months of 2005. Net income for the first six months of 2005 was similarly impacted by the warranty charge described above.

 

“We are extremely pleased with our second quarter and first half of the year results as we achieved all-time record sales, net income and earnings per share in the quarter, and continued to improve gross margins,” said William D. Gehl, chairman and chief executive officer. “We are focused on compact equipment and driving cost out of our business. We continue to see the benefits of this strategy in our results.”