JLG Industries has restated its audited financial statements for the fiscal year ended July 31, 2003, and may restate its unaudited financial statements for the first quarter ended October 31.

JLG said it had prematurely recognised a transaction with USD8.7 million in net revenues, USD1.8 million in net profit and USD0.04 per diluted share for the year and for the fourth quarter ended July 31. The restatement reduces sales and profit in the fourth quarter and will result in an equal or greater increase in revenue and profit over the first three quarters of this fiscal year.

Reported results for fiscal year 2003 included revenues of USD759.8 million, net income of USD14.2 million and earnings per diluted share of USD0.33.

The transaction, with a single customer, was originally recorded in July. JLG re-examined the terms and subsequent history and concluded the transaction was incorrectly reported as a sale, rather than a consignment sale. Under generally accepted accounting principles, a contingent sale allows recognition of the revenues only upon final sale of the equipment by the consignee. As of February, all the equipment had now been sold, the majority in the fiscal 2004 second quarter, JLG said.

Management said it notified the audit committee of the board of directors and JLG's independent auditor, Ernst & Young LLP.

Ernst & Young said the improper accounting of the transaction reflected a material weakness in internal controls. JLG has begun an internal review to determine the circumstances of the transaction, to rule out or identify any similar transactions within the current year and the preceding three years and evaluate and recommend appropriate remedial action.