Challenging Q2 for JLG

JLG sales decreased 4.1% to $723.2 million in the second quarter of its 2017 financial year, compared to the same period in 2016.

The decline in sales in Oshkosh Corporation’s access equipment segment, was primarily due to lower telehandler sales volumes in North America and Europe as well as more competitive pricing, said the company, offset in part by higher sales of used equipment and service.

Operating income decreased 44.4% to $42.1 million, or 5.8% of sales, in the second quarter, compared to $75.7 million, or 10% of sales in the second quarter of fiscal 2016.

Excluding restructuring-related charges, access equipment segment operating income in the second quarter was $59.3 million, or 8.2% of sales. The decline in operating income was primarily due to the more competitive pricing situation, said Oshkosh, along with higher selling and administrative expenses, including higher trade show expenses.

The Oshkosh group’s net income for the quarter stood at $44.3 million, compared to $56.1 million, in the second quarter of 2016. Consolidated net sales were $1.62 billion, an increase of 6.2%. The company stated, “A significant increase in sales in the defence segment was offset in part by lower sales in the access equipment and commercial segments.”

Wilson Jones, president and chief executive officer of Oshkosh Corporation, said, “We are pleased with our second quarter results and have a positive outlook. Our positive outlook is supported by favourable market dynamics in our defence and fire and emergency segments, as well as opportunities to drive additional shareholder value through continued execution of our MOVE strategy and the benefit of aging customer fleets that will eventually need to be replaced. As we celebrate our 100th anniversary, our team members are engaged and energised about the future.