JLG WITH OMNIQUIP BOOSTS Q3 SALES 55%

News Story
- 27 May 2004 ( #159 ) - McCONNELLSBURG, PA, United States
2 min read
In reporting a third quarter sales jump of 55%, JLG Industries Inc said it was ramping up production to meet demand and coping with some component shortages.

In the OmniQuip line, "some models are sold out until August", said Bill Lasky, chairman, president and CEO.

OmniQuip was making 40 telehandlers a week when JLG bought the company on August 1 last year. Production of OmniQuip-related telehandler models at the McConnellsburg plant was now "at about 60 (a week), and sales is asking us to ramp up to 80 a week," Mr Lasky said.

JLG is experiencing similar increased demand for its Gradall telehandlers.

JLG reported profit of USD8.7 million on sales of USD318.7 million for the quarter, which ended on April 30. JLG had a profit of USD2.2 million on sales of USD205.8 million in last year's comparable quarter.

Of the increased sales, OmniQuip products accounted for USD67.1 million, and traditional JLG products for USD45.9 million, up 22%.

Mr Lasky said concerns remained about raw material and energy prices, although interest rates had been stable. In mid-March, JLG imposed a 2.755% surcharge on steel, partially offsetting steel price increases and surcharges JLG had absorbed. Continued pressures existed in obtaining steel components and petroleum-based products.

On the steel surcharge, "we felt as leaders in (the) access industry, we would lead", Mr Lasky said. "Some followers did not follow. The biggest ones did."

Two years ago, JLG was considering shutting down facilities, but now the company had added 400 personnel and was expanding operations in McConnellsburg and in some underutilised facilities, Mr Lasky said.

JLG has maintained operations at OmniQuip's Oakes, North Dakota, plant and, in recent months, has transferred production of numerous telehandler parts to Oakes from a JLG plant in New Philadelphia, Ohio. Activities at five other OmniQuip sites were relocated, and the facilities closed.

JLG said the US economy continued to strengthen, reflecting positive trends in construction spending, capacity utilisation and consumer confidence. European economic indicators were also positive, although they lagged the US recovery.

JLG also said George Kempton had retired from the company's board of directors, effective from May 20, after more than 10 years' service. Mr Kempton is the retired chairman and CEO of Kysor Industrial Corp.
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