Non-Residential Construction Drives Record First-Quarter Revenues for JLG

November 21, 2006 • JLG Industries, Inc., McConnellsburg, Pa., announced that its 2007 fiscal first-quarter consolidated revenues were $539 million, up $61 million when compared to $478 million during the same period last year. 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. Operating income was $62 million, or 11.5 percent of sales, which increased from a mark of $50 million, or 10.5 percent, during the same period last year. Cash and cash equivalents were $308 million at Oct. 29, 2006 compared to $231 million a year ago. Fiscal first-quarter 2007 net income included $4.1 million, or 2 cents per share, of charges related to the proposed merger with a subsidiary of Oshkosh Truck Corporation.

 

According to Bill Lasky, chairman of the board, president, and chief executive officer of JLG, this is the fourth consecutive year of record first-quarter revenues, despite consolidation in the equipment rental industry, which has altered ordering patterns for its larger customers. Strength in non-residential construction continues to drive demand for JLG products, he said. Orders were up 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 years as we ramp up to full production under the exclusive 20-year private label Alliance agreement,” Lasky said.

 

Jim Woodward, executive vice president and chief financial officer, stated that, excluding the $4.1 million charges related to the merger, JLG's operating margin was 26%, which reflected the effect of the company's ongoing cost reduction initiatives, as well as an improved sales mix. “In addition, a lower effective tax rate contributed to the increase in net income,” he said.

 

With strengthened orders and having insight into most of its major customers' annual purchasing plans, Woodward said that JLG expects is fiscal 2007 revenue growth will be toward the upper end of its previously announced range of 20 to 25 percent growth than its 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,” he said. The revised earnings guildance includes $4.1 million in merger-related expenses but does not include any other expenses that may be incurred in completing or terminating the merger.