JLG Industries Inc has reported lower profit and generally flat sales for its first quarter, which ended on October 31.

JLG said it had had "aggressively" integrated its OmniQuip purchase (Forkliftaction.com News #115), leading to a fall in profit from USD329,000 in 1Q 2002 to USD277,000.

JLG reported sales of USD212.2 million, including USD53.4 million of OmniQuip sales. Sales in last year's comparable quarter were USD160.5 million.

JLG said it expected to complete relocating production of military telehandlers from OmniQuip's plant in Port Washington, Wisconsin, to its McConnellsburg facility in December.

In North America, rental fleets continued to age, with the average age expected to be 42-56 months by the end of 2003. The ageing led to "increased servicing costs to rental companies and an increasing need for fleet refreshment", said JLG chairman Bill Lasky.

JLG observed improvement in fleet utilisation and rental rates "due to the concerted efforts of rental companies to improve rates and the increased demand for equipment, especially on the (US) west coast".

JLG said international sales volumes increased "primarily in Australia and the Pacific Rim. Although these segments are not as significant as North America, we are seeing profit improvements there and in [parts of] Europe". Europe overall, however, was lagging.

"Although there are pockets of strength (such as Spain), we haven't seen any solid improvement in overall economic conditions in Europe," he said. "The economy there has lagged (behind) the US, and some markets remain in recession. If the spring and summer construction season of calendar 2004 shows improvement in the US, a broader European recovery may follow a year later."