RERMAG

ServicePlus to Move to Larger Pennsylvania Facility

MCCONNELLSBURG, Pa. — JLG Industries last month announced plans to relocate its ServicePlus Mid-Atlantic operation from McConnellsburg, Pa., to a larger facility in Benford, Pa. The move will provide additional capacity to meet increased demand for reconditioning, remanufacturing and repair. JLG expects to open the facility in June.

“We're extremely pleased that strong customer demand for ServicePlus has driven the need to expand our operations,” said JLG ServicePlus president Joe Dixon.

Jeff Rush will manage the facility as newly appointed director of operations for ServicePlus Mid-Atlantic.

In other JLG news, the company said its 20-year strategic alliance agreement to design and build a Cat-branded telehandler line for Caterpillar dealers is proceeding on schedule. In July and October 2006, Cat telehandlers began shipping to Caterpillar dealers in Europe, Africa and the Middle East from Belgium; and to North and South American dealers from McConnellsburg.

“The October shipments for the Americas, when coupled with the European redesign and shipments of the B-series, marked significant milestones for the alliance,” said Craig Paylor, senior vice president of marketing for JLG. “Development of a completely new Cat telehandler product designed specifically for the Americas market was the top priority at JLG. We were pleased that the production for both the B-Series and the TL-Series telehandlers began ahead of plan.”

“We're very pleased with the progress of our strategic alliance with JLG,” added Ed Rapp, vice president of Caterpillar's Building Construction Products Division.

JLG, the world's leading supplier of aerial work platforms and telehandlers, is a subsidiary of Oshkosh Truck Corp. Las Vegas-based Ahern Rentals increased revenue 31 percent in 2006, matching the 31-percent increase in 2005 compared with 2004. Total revenue was $266.1 million for the company in 2006, up from $203.7 million in 2005. Rental revenue accounted for $236.9 million, up from $179.9 million in 2005. Net income increased from $5.6 million to $25.2 million.

High-reach rental accounted for 69 percent of rental revenue, the company said, with 20 percent from general rental including earthmoving equipment. The company attributed the increase in the number of units available for rent as a result of capital expenditures that increased the average original cost of its rental fleet to $474 million in 2006 from $354 million in 2005. This increase was slightly offset by a drop in average dollar utilization from 51 percent in 2005 to 50 percent in 2006.

Since the beginning of 2007, Ahern Rentals has opened new branches in Hurricane, Utah; Cedar City, Utah; Kansas City, Kan., and Houston.

Stephenson's Rental Services recently announced results for the three months and year ended December 3, with 26 percent year-over-year revenue increases in the fourth quarter and full-year 2006. EBITDA rose 36 percent for the full year and 58 percent for the fourth quarter. Revenue for the fourth quarter increased 25.8 percent to CD $16.3 million (about U.S. $14.1 million), primarily because of the contributions from the acquisition of A-1 Equipment Rental in May 2006. Rental revenue represented about 81 percent for the quarter.

Full-year revenue rose 25.7 percent to $55.3 million (about U.S. $48 million), an increase stimulated by the acquisition of A-1 and presence of a larger rental fleet.

Peoria, Ill.-based Caterpillar Inc. last month reported record first-quarter profit per share of $1.23, a $0.03 per share improvement from the first quarter of 2006. These results came despite severe weakness in two important North American industries. Sales and revenues of $10.01 billion were also a first-quarter record and were up 7 percent, or $624 million, from $9.39 billion in last year's first quarter.

Profit of $816 million was down $24 million from the first quarter of 2006. Higher core operating costs and a higher tax rate more than offset the favorable effects of improved price realization, a $46 million gain on the sale of a security and the addition of Progress Rail.

The company increased the 2007 outlook for sales and revenues and profit per share. Full-year sales and revenues are expected to be in a range of $42 to $44 billion, up from $41.5 billion in 2006, and profit in a range of $5.30 to $5.80 per share, up from $5.17 per share in 2006. The previous outlook was for sales and revenues of $41.5 to $43.6 billion and profit per share of $5.20 to $5.70.

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