Record Third Quarter Net Sales for Gehl

October 31, 2006 • Gehl Co., West Bend, Wis., announced record third quarter net sales from continuing operations of $121 million for the quarter ended September 30, 2006, an increase of 13% from 2005. Income from continuing operations was $7.4 million, or $0.59 per diluted share, for the third quarter of 2006, up from $5.7 million, or $0.52 per diluted share, in 2005.

 

Operating profit was $12.1 million, or 10% of net sales, in the third quarter 2006 compared to $9.4 million, or 8.8% of net sales, in 2005. Gross margin increased to 21.8% in the third quarter of 2006, up from $20.6% in 2005. The increase in gross margin was primarily due to improved product price realization in the third quarter of 2005, as well as the favorable impact of on-going cost reduction initiatives.

 

“Our record third quarter results showed continuous progress as we achieved solid revenue growth and improved gross margins,” said William D. Gehl, chairman and chief executive officer. “Notwithstanding the weakening U.S. housing market, the fundamentals of our global markets remain solid and we are on track to achieve our full year of 2006 sales and earnings outlook.”

 

For the first nine months of 2006, Gehl reported net sales from continuing operations of $382.6 million, an increase of 11% from the first nine months of net sales in 2005. Income from continuing operations in the first nine months of 2006 was $23.1 million, or $1.86 per diluted share, compared to $16.4 million, or $1.54 per diluted share, in 2005.

 

Gehl reaffirmed its 2006 full-year outlook with net sales from continuing operations in the range of $485 million to $495 million and earnings per diluted share from continuing operations of $2.20 to $2.30.