JLG posts strong numbers for third quarter
Commercial
construction vehicle producer JLG released its third quarter results this week.
With consolidated revenues for the third quarter totaling $505 million, JLG outpaced third quarter 2004s revenues by 59%. The company reported a net income of $22.7 million, an $8.7 million year on year improvement.
We were extremely pleased by the success of our equity offering during the quarter," stated Jim Woodward, JLG executive vice president and CFO, in press release. "We used the proceeds to repurchase a portion of our Senior Subordinated Notes and Senior Notes. These transactions, combined with our other business activities including $101 million in cash flow from operations, resulted in a quarter-end cash and marketable securities position of $172 million and a reduction in net debt-to-net debt plus shareholders' equity ratio from 50 percent to 12 percent sequentially.
For the most part, JLG appears to be benefiting from the improvement in the international commercial building market. A small part of JLG third quarter success, however, can be attributed to the declining costs for before-tax net unrecovered steel, which was $8.3 million, down from $26.8 million and $21.0 million from the first two quarters.
"Economic activity, particularly commercial and non-residential
construction activity, the primary drivers of equipment demand, continues at a healthy pace. Fleet age, rental and utilization rates for our type of equipment continues to drive demand in most all geographic regions and product lines," said Woodward.
In light of their recent success, JLG expects a revenue growth of 40-45%, a projection range 10% higher than their previous prediction.
JLG manufactures and markets vertical mast lifts, scissor lifts, boom lifts, telehandlers, excavators, and trailers.