Two US materials handling companies have reported reduced earnings and sales for the fourth quarter of 2007 as a result of the uncertain domestic economic environment.

Gehl Company's net sales for the quarter ended 31 December 2007 were USD102.2 million, 1% lower from the 2006 fourth quarter result of USD103.6 million. Gehl's telehandler retail demand declined 16% in the fourth quarter compared to an industry-wide market decline of over 24%.

William Gehl, company CEO, says the company's performance in "difficult domestic markets" was offset by its continued market share gains. Strong agricultural markets and growth of the company's international distribution footprint were also credited with partially offsetting the impact of the weaker North American construction activity and lower capital investments by equipment rental companies.

Net sales for Gehl Company decreased 6% from USD486.2 million in 2006 to USD457.6 million in 2007. Sales outside the US were USD131 million or 29% of the company's sales, increasing 31% over 2006.

Gehl Company said industry retail demand in North America for telehandlers was 28% lower than in 2006 but the company's market share gains resulted in its telehandler retail performance decreasing by 9% only.

Gehl says the company does not anticipate North American housing conditions to improve significantly in 2008. International markets are expected to grow while current forecasts anticipate the North American compact equipment markets will decline between 10% and 30% in 2008.

Meanwhile, Nacco Industries Inc, a producer of forklifts, small appliances and coal, reported its fourth-quarter earnings fell 26% from the 2006 corresponding period.

Crain's Cleveland Business reported Nacco earned USD51.7 million in the fourth quarter of 2007 compared to USD70 million in the like period of 2006. However, for the full year of 2007, revenue rose about 8% from USD3.3 billion in 2006 to USD3.6 billion.

Nacco says the economic environment "appears very uncertain" for its small appliances and forklift market.

"Key improvement programs continue to be implemented [for Nacco Materials Handling Group]. However, these programs will incur significant costs in 2008," the company says, adding it expects to be impacted by the weakening US dollar.