JLG Jumps Second Quarter Sales 5.7 Percent, 12.1 Percent for First Half

Oshkosh Corp.’s access equipment segment, JLG Industries, posted $977.1 million in the company’s second quarter ended June 30, 2022, compared to $924.3 million in the fiscal second quarter of 2021, a 5.7-percent increase. Aerial work platform sales were $451.5 million compared to $450.9 million in last year’s second quarter, flat year over year. Telehandler sales, however, were $309.8 million compared to $233.5 million a year ago, a 32.7-percent increase. “Other” revenue was $215.8 million compared to $238.7 million in last year’s first quarter, a 9.6-percent decline.

      For the first six months of 2022, total access equipment sales were $1,860.2 million compared to $1,659.7 million for the first six months of 2021, a 12.1-percent increase. Sales of aerial work platforms were $891.2 million for the first six months, compared to $809.1 million in the first half of last year, a 10.2-percent uptick. Telehandlers sales were $539.5 million compared to $408.7 million a year ago, a 32.1 percent hike. Other revenue was $429.3 million compared to $441.9 million, a 2.9 percent drop.

      Access Equipment segment sales for the second quarter of fiscal 2022 increased 5.7 percent to $977.1 million as a result of higher pricing in response to higher input costs, offset in part by lower sales volume in China and Europe.

    Access Equipment segment operating income in the second quarter of fiscal 2022 decreased 38.6 percent to $69.4 million, or 7.1 percent of sales, compared to $113.0 million, or 12.2 percent of sales, for the three months ended June 30, 2021. The decrease was primarily from higher material and logistics costs and manufacturing inefficiencies associated with supply chain challenges, offset in part by higher pricing and lower incentive compensation costs.

Supply chains still a factor

“While we are encouraged by strong demand for our products and our ability to price for inflation, our second quarter results did not meet our expectations due to three principal factors,” said John Pfeifer, Oshkosh president and CEO, discussing companywide results. “First, supply chain disruptions reduced sales volume and caused labor inefficiencies; second, Defense recognized unfavorable cumulative catch-up adjustments related to inflationary pressures; and third, we recorded an unfavorable non-cash mark-to-market adjustment on an equity investment. We continue to believe that supply chain and inflationary challenges will subside over time and we remain positive in our outlook over the next several years given our strong backlogs and key indicators within the markets we serve.

“Second quarter performance was highlighted by sequential growth in both sales and operating income driven by a meaningful improvement in price-cost dynamics compared to the first quarter of fiscal 2022, particularly at Access Equipment. In Fire & Emergency, we announced the acquisition of Canadian fire truck manufacturer Maximetal, known for its strong culture and customer focus. We expect to benefit from Maximetal’s experience and leadership as we grow our presence in Canada.

“Our Defense team received several key contracts during the quarter, including orders for the JLTV, Stryker MCWS and FHTV programs. Additionally, we held a successful program review with the USPS, focusing on both technical factors as well as demonstrations of the Next Generation Delivery Vehicle. At our Investor Day in early May, we shared our plans for increasing investment in technology and driving accelerated growth through fiscal 2025. We remain committed to delivering on our targets, despite the current operating environment challenges.

“As a result of the second quarter performance, as well as ongoing supply chain challenges and inflationary pressure, we are lowering our outlook for fiscal 2022. We now believe 2022 earnings per share will be approximately $3.25, or adjusted earnings per share in the range of $3.50, with our results dependent upon supply chain and inflationary conditions for the remainder of the year."