JLG Lowers Earnings Estimates for Third Quarter; Market Share Increases Despite Economic Uncertainty

Apr 12, 2001, 01:00 ET from JLG Industries, Inc.

    MCCONNELLSBURG, Pa., April 12 /PRNewswire/ -- JLG Industries, Inc.,
 (NYSE:   JLG) today announced that fiscal third quarter results are now forecast
 to be in the range of $.29 to $.34 per diluted share compared to $.40 per
 diluted share a year ago.  Management's previous earnings per share estimate
 for the quarter was a range of $.46 to $.50.  The slowing economic climate and
 related tightening in credit markets is contributing to slower-than-expected
 shipments for this historically strong quarter.
     "Order patterns during late March and early April have traditionally been
 key indicators of demand strength for our products as we enter the peak summer
 season," notes Bill Lasky, Chairman of the Board, President, and Chief
 Executive Officer.  "Our customers continue to confirm that the aerial
 segments of their businesses are among their stronger segments and JLG's
 preferred supplier position within that segment.  However, given the mixed
 economic news and related credit environment, many are focusing on internal
 operational improvements and taking a more cautious approach to equipment
 acquisition.  We had anticipated capital expenditures at many of our larger
 customers would be down this year as the high rate of acquisitions and related
 equipment replacement was for the most part over.  What we had not anticipated
 was the degree of retreat that lending institutions would take for some
 customers that continue to do well but require additional equipment.  To that
 end, the recently formed JLG Financial Services unit is working to support our
 customers in locating additional funding sources, albeit a slower and more
 difficult task than in the same period last year."
     According to Jim Woodward, Senior Vice President and Chief Financial
 Officer, "Based on our review of recent order patterns and conversations with
 key customers, consolidated sales for the third quarter are expected to be
 approximately 15 percent below the same period last year.  The decline will be
 in both Europe and North America primarily in aerial work platforms while
 telescopic material handlers and excavators are both forecast to be equal with
 the prior period.  Manufacturing margins are expected to be stable year-on-
 year, but the operating margin will be reduced due to the comparatively fixed
 nature of selling and administrative expenses in the short-term.  As a result
 of the sales shortfall to our plan, average finished goods and related
 interest expense will be higher than anticipated.  Our finished goods target
 for the end of our fiscal year at July 31, 2001 remains approximately equal to
 last year's actual and we are adjusting our production plans to conform to the
 revised sales projections as well as reviewing additional cost savings
 opportunities."
     Commenting further on the situation, Lasky said, "We are disappointed
 about this turn of events with the economy.  As we have stated previously, we
 had planned for a market decline of 6 percent for AWP's and 10 percent for
 telehandlers, but had projected to grow through increased market penetration.
 With interest rates declining and key construction indicators continuing to be
 mixed, it is unclear at this time whether we are facing a timing issue or a
 protracted downturn.  Our internal tracking indicates that our market shares
 continue to increase but we are not a financial institution nor will we give
 product away via deep discounts or unacceptable terms for the sake of a sale.
 These kinds of actions are short sighted and tend to undermine the long-term
 residual value that our customers have come to expect of JLG equipment.  We
 also are not altering our plans to commence manufacturing in Europe and remain
 committed to developing an enhanced customer service business as well as
 pursuing opportunistic acquisitions.
     Given the uncertainty, we will continue to closely monitor order patterns
 in April and May and expect to be able to revise guidance for the remainder of
 our fiscal year by the time we report third quarter results in May.  We remain
 steadfast in our commitment to technological leadership with new innovative
 products designed to be more productive and profitable for our customers and
 for JLG."
     The Company will report third quarter results and host a conference call
 on Wednesday, May 23, 2001.  Call access information will be available on the
 Company's web site at the beginning of May.
     JLG Industries, Inc. is the world's leading producer of mobile aerial work
 platforms and a leading producer of variable-reach material handlers and
 telescopic hydraulic excavators marketed under the JLG and Gradall trademarks.
 Sales are made principally to rental companies and distributors that rent and
 sell the Company's products to a diverse customer base, which includes users
 in the industrial, commercial, institutional and construction markets.  JLG
 has six manufacturing facilities in Pennsylvania and Ohio, with sales and
 service locations on six continents.
 
     This news release contains forward-looking statements as defined by the
 Private Securities Litigation Reform Act of 1995, including but not limited to
 those relating to financial projections and future financial performance,
 future market conditions and trends, the growth of the Company's businesses,
 product demand, the introduction of new products, and the opening of new
 facilities.  The forward-looking statements in this announcement may involve
 certain risks and uncertainties, which could cause actual results to differ
 materially, including cyclical demand, a consolidating customer base,
 competition, continued innovation, product liability, availability of product
 components, and other risks, as detailed in the Company's SEC reports,
 including the report on Form 10-Q for the quarter ended January 31, 2001.
     For a fax copy call 800-758-5804, extension 148831 or visit www.jlg.com.
 
 

SOURCE JLG Industries, Inc.
    MCCONNELLSBURG, Pa., April 12 /PRNewswire/ -- JLG Industries, Inc.,
 (NYSE:   JLG) today announced that fiscal third quarter results are now forecast
 to be in the range of $.29 to $.34 per diluted share compared to $.40 per
 diluted share a year ago.  Management's previous earnings per share estimate
 for the quarter was a range of $.46 to $.50.  The slowing economic climate and
 related tightening in credit markets is contributing to slower-than-expected
 shipments for this historically strong quarter.
     "Order patterns during late March and early April have traditionally been
 key indicators of demand strength for our products as we enter the peak summer
 season," notes Bill Lasky, Chairman of the Board, President, and Chief
 Executive Officer.  "Our customers continue to confirm that the aerial
 segments of their businesses are among their stronger segments and JLG's
 preferred supplier position within that segment.  However, given the mixed
 economic news and related credit environment, many are focusing on internal
 operational improvements and taking a more cautious approach to equipment
 acquisition.  We had anticipated capital expenditures at many of our larger
 customers would be down this year as the high rate of acquisitions and related
 equipment replacement was for the most part over.  What we had not anticipated
 was the degree of retreat that lending institutions would take for some
 customers that continue to do well but require additional equipment.  To that
 end, the recently formed JLG Financial Services unit is working to support our
 customers in locating additional funding sources, albeit a slower and more
 difficult task than in the same period last year."
     According to Jim Woodward, Senior Vice President and Chief Financial
 Officer, "Based on our review of recent order patterns and conversations with
 key customers, consolidated sales for the third quarter are expected to be
 approximately 15 percent below the same period last year.  The decline will be
 in both Europe and North America primarily in aerial work platforms while
 telescopic material handlers and excavators are both forecast to be equal with
 the prior period.  Manufacturing margins are expected to be stable year-on-
 year, but the operating margin will be reduced due to the comparatively fixed
 nature of selling and administrative expenses in the short-term.  As a result
 of the sales shortfall to our plan, average finished goods and related
 interest expense will be higher than anticipated.  Our finished goods target
 for the end of our fiscal year at July 31, 2001 remains approximately equal to
 last year's actual and we are adjusting our production plans to conform to the
 revised sales projections as well as reviewing additional cost savings
 opportunities."
     Commenting further on the situation, Lasky said, "We are disappointed
 about this turn of events with the economy.  As we have stated previously, we
 had planned for a market decline of 6 percent for AWP's and 10 percent for
 telehandlers, but had projected to grow through increased market penetration.
 With interest rates declining and key construction indicators continuing to be
 mixed, it is unclear at this time whether we are facing a timing issue or a
 protracted downturn.  Our internal tracking indicates that our market shares
 continue to increase but we are not a financial institution nor will we give
 product away via deep discounts or unacceptable terms for the sake of a sale.
 These kinds of actions are short sighted and tend to undermine the long-term
 residual value that our customers have come to expect of JLG equipment.  We
 also are not altering our plans to commence manufacturing in Europe and remain
 committed to developing an enhanced customer service business as well as
 pursuing opportunistic acquisitions.
     Given the uncertainty, we will continue to closely monitor order patterns
 in April and May and expect to be able to revise guidance for the remainder of
 our fiscal year by the time we report third quarter results in May.  We remain
 steadfast in our commitment to technological leadership with new innovative
 products designed to be more productive and profitable for our customers and
 for JLG."
     The Company will report third quarter results and host a conference call
 on Wednesday, May 23, 2001.  Call access information will be available on the
 Company's web site at the beginning of May.
     JLG Industries, Inc. is the world's leading producer of mobile aerial work
 platforms and a leading producer of variable-reach material handlers and
 telescopic hydraulic excavators marketed under the JLG and Gradall trademarks.
 Sales are made principally to rental companies and distributors that rent and
 sell the Company's products to a diverse customer base, which includes users
 in the industrial, commercial, institutional and construction markets.  JLG
 has six manufacturing facilities in Pennsylvania and Ohio, with sales and
 service locations on six continents.
 
     This news release contains forward-looking statements as defined by the
 Private Securities Litigation Reform Act of 1995, including but not limited to
 those relating to financial projections and future financial performance,
 future market conditions and trends, the growth of the Company's businesses,
 product demand, the introduction of new products, and the opening of new
 facilities.  The forward-looking statements in this announcement may involve
 certain risks and uncertainties, which could cause actual results to differ
 materially, including cyclical demand, a consolidating customer base,
 competition, continued innovation, product liability, availability of product
 components, and other risks, as detailed in the Company's SEC reports,
 including the report on Form 10-Q for the quarter ended January 31, 2001.
     For a fax copy call 800-758-5804, extension 148831 or visit www.jlg.com.
 
 SOURCE  JLG Industries, Inc.

RELATED LINKS

http://www.JLG.com