JLG Q2 sales up 6.5%

Oshkosh Corporation has released its Q2 results, reporting access equipment sales from JLG increased 6.5 percent to $738.2 million compared to the same time period last year. Oshkosh said the increase was due to “improved market demand in Asia and North America,” and that the access segment exceeded the corporation’s expectations. 

JLG reported strong return of demand led by activity in North America and replacement of aged fleets despite lower non-residential construction forecasts in calendar 2021. In an earnings call with investors on April 28, John C. Pfeifer, president and CEO of Oshkosh Corp., said, “Demand across the company and particularly in our Access Equipment segment has come back stronger and faster than we expected as a result of positive vaccination progress and the confidence that, that brings to the marketplace.”

JLG sold $358.2 million in mobile elevating work platforms for the three months to March 31 compared to $273.7 million last year. Meanwhile the company’s telehandler sales were down -19.4 percent at $175.2 million compared to last year’s $217.6 million. 

Backlog for JLG is up 80 percent at $1.52 billion compared to the prior year.

Discussing the industry’s cycle during the call, Pfeifer said, “We believe that we’re entering a multi-year growth cycle in access equipment. We absolutely expect to achieve and exceed the prior peak revenues. The prior peak revenues was not too long ago. It was a little over $4 billion. We absolutely expect to exceed that.

“The application of access equipment continues to expand. It’s more versatile. It’s used in different applications, not just construction. We’re continuing to see wider usage of the equipment.

“We think that bodes well for [access equipment.] Of course, there’s the fleet age. There’s an aged fleet in the U.S. That alone, the replacement of that aged fleet, will drive a lot of that multi-year growth rate.”

JLG also reported a “succesful return to full production” in the U.S. despite supply chain challenges that remain, including global semiconductor shortages. The company updated its pricing - and increase of 3 percent - as a result of sustained steel cost increases, but noted “higher prices won’t fully cover elevated costs until FY22.” The company said its expansion of its Chinese facility remains on track, as well.

JLG’s new 2733 telehandler.

“We expect our strong second quarter performance and improved outlook to yield growth in revenues, operating income and earnings per share in fiscal 2021 compared with last year’s results,” the company said.

Oshkosh also announced its full year 2021 expectations, with total revenues forecasted between $7.75 to $7.95 billion. JLG equipment sales are expected to bring in $3.15 to $3.35 billion, amounting to roughly 40 percent of the parent company’s full year revenues.