Sales up at JLG
By Euan Youdale29 July 2016
JLG’s net sales increased 2.1% to $952.5 million in the third quarter of its 2016 financial year, compared to the same period in 2015.
The increase in sales was primarily due to higher telehandler sales in North America, offset in part by a challenging pricing environment, said parent group Oshkosh.
Operating income decreased 10.4% to $122.1 million, or 12.8% of sales, in the third quarter compared to $136.4 million, or 14.6% of sales, in the third quarter last year, although there was lower spending on engine emissions standards changes.
In addition, Oshkosh’s access equipment segment recorded a reduction in accrued incentive compensation expense as a result of lowering its fiscal 2015 projected results.
“Our solid fiscal third quarter results were led by strong performance in our defense and fire & emergency segments, each of which recorded year-over-year increases in sales, operating income and operating income margin,” said Wilson Jones, president and chief executive officer of Oshkosh Corporation.
“Our access equipment segment continues to manage production levels while delivering high quality aerial products in a market that we expect to be down compared with fiscal 2015,” added Mr Jones. “The team made great progress this quarter lowering inventory as we work to optimise our working capital.
Group consolidated net sales in the third quarter were $1.75 billion, an increase of 8.4%. Operating income in the third quarter of fiscal 2016 was $146.8 million, or 8.4% of sales, compared to $136.6 million, or 8.5%, in the prior year third quarter.