JLG has reported a 42 percent rise in revenues for the 12 months to the end of September, while profits more than tripled.
Total revenues for the year were $2.92 billion, 42 percent higher than last year, the breakdown shows a 45 percent increase in aerial lifts sales to $1.39 billion, while telehandler sales increased 69 percent to $892.3 million. Finally revenues from ‘other' items were up 14 percent to $637 million, this includes, parts and service and intercompany component sales.
The backlog at the end of September was halved to $361.1 million.
Looking at the fourth quarter, total sales were up 15.6 percent to $716 million, principally due to higher sales volumes in North America and previously announced price increases taking effect. Aerial lift sales were up very marginally in the quarter to $330.4 million. Telehandler sales growth remained strong rising by 47 percent to $248.9 million. Operating income in the quarter increased 71 percent to $59.5.
JLG is of course a part of Oshkosh, the group as a whole reported full year revenues of $8.18 billion up eight percent on last year, while pre-tax profits slipped 31 percent to $293.7 million.
Chief executive Charlie Szews said: “We’re pleased to report fiscal 2012 adjusted results of $2.27 per diluted share, which exceeded our most recent expectations of $2.05 - $2.15 per share. These results significantly exceeded our initial expectations for the year, which evidences the effectiveness of our MOVE strategy in driving results.”
“The Company also generated $215 million of free cash flow in fiscal 2012 to strengthen its balance sheet. This performance reflects the actions and commitment of all our dedicated employees, management and Board to deliver value for all shareholders. Concrete mixer orders accelerated in the fourth quarter. We believe this is a strong sign that a housing recovery has commenced, which further supports our long-term outlook for our non-defence segments.”
“At our analyst day on September 14, we presented a comprehensive overview of our business, our markets and our MOVE strategy. We also provided a roadmap to approximately double adjusted earnings from continuing operations from fiscal 2012 to $4.00 - $4.50 per share by fiscal 2015. This target demonstrates how we expect MOVE to deliver outstanding value for all shareholders. We’re confident that the company is on track to achieve its targets and we look forward to updating shareholders on our progress.”
Overall this is an excellent result for JLG, although as we have already seen with Genie, the company’s backlog has been halved in the past three months. This due to flat aerial lift sales, offset by a strong growth in telehandler sales.
JLG has not specifically commented on this factor, although the general consensus is that the United/RSC merger along with other major rental companies having completed 2012 spending has held new order intake down, and we are iunlikely to see it bounce back until the first quarter of 2013.
We would expect JLG revenues to continue their upward trend in the 2013, both from aerial lifts and telehandlers. With margin levels remaining at similar levels to 2012. As to the future much will now depend on how shareholders react to Carl Icahn’s buyout offer.