JLG Industries last week announced record consolidated revenues for its fiscal fourth quarter ended July 31 of $570 million, a 34 percent year-over-year increase from $425 million in Q404. Sales increased 33 percent in the United States and 36 percent internationally. Net income was $35.7 million, or $0.69 per diluted share, up from $15.3 million or $.35 per diluted share in the same period last year.
Net unrecovered steel costs were an estimated $9 million before-tax for the current quarter, relatively consistent with the third quarter and significantly reduced compared to the $48 million reported in the first half. Estimated net unrecovered steel costs represent the difference between estimated increases in steel and related commodity costs against fiscal 2004 baselines, offset in part by increased pricing.
“Reflecting strong customer demand in a robust market, our revenue grew significantly in each and every quarter of fiscal 2005,” said Bill Lasky, chairman, CEO and president. “And despite record quarterly shipments, our order book still increased to $631 million at year’s end, more than three times the $198 million at the end of 2004. Operating efficiencies were enhanced by significant improvements in component availability from our supply chain. While the price of steel and other commodity inputs to our products remain high, with the exception of energy prices, they have stabilized, and as a result of our pricing actions and design and process improvements we have recovered much of the increased costs. With the most recent increase in our surcharges, announced in May, going forward into fiscal year 2006 we expect to substantially recover these higher raw material costs.”
“Absent any major economic shocks, we anticipate stronger demand in fiscal 2006 with global sales projected to increase by 15 to 20 percent,” added Jim Woodward, executive vice president and chief financial officer. “The stabilization of steel and component costs combined with our customer pricing actions will greatly improve the quality of our earnings. Additionally, continued improvement of component availability is helping drive operating efficiency gains. Therefore, we are anticipating fiscal 2006 earnings per diluted share in the $2.15 to $2.25 range. We believe that we have the right products and services, and manufacturing flexibility to meet the strong demand and achieve our longer-term goals. During the year, we will continue to explore opportunities to put our excess cash to work to increase shareholder value.”