JLG Q1 sales ‘exceed expectations’ despite dip in Europe

JLG Q1 sales for the three months ending March 31 increased 3.7 percent to $1.24 billion as a result of higher sales volume in North America, offset in part by lower sales volume in Europe, the OEM’s parent company Oshkosh Corp. reported.

(Photo: JLG)

Access segment operating income in the first quarter of 2024 increased 54.1 percent to $208.1 million, or 16.8 percent of sales, compared to $135.0 million, or 11.3 percent of sales, in the first quarter of 2023. The increase was primarily due to improved price/cost dynamics, improved customer mix and higher sales volume, according to the company.

“Demand for aerial work platforms and telehandlers in North America continues to be solid, supported by infrastructure investments, mega projects and industrial onshoring projects as well as elevated fleet ages,” said John C. Pfeifer, Oshkosh president, CEO and director. “We’re really pleased with the market in access. We see continued demand drivers going forward. We talked about the Q4 order book was really strong. The $940 million that we just booked was better than our expectations. So we’re booked well through 2024 right now.”

The company said JLG continues to invest in new products and technologies, including “moments of autonomy” and ClearSky SmartFleet, its next-generation IoT platform that enables two-way, real-time communications, Pfeifer added.

JLG and Oshkosh also said the repurposing of the company’s Jefferson City, TN facility for telehandler production is moving forward as planned.

“We expect a meaningful ramp in telehandler production capacity in the facility for 2025 which will help us capitalize on demand for our equipment,” Pfiefer said. “Importantly, we believe there are many opportunities to continue to drive growth and strong performance at Access over time.”

Demand drivers remain solid, the company noted, with infrastructure, mega projects, onshoring and aged fleets aiding solid sales.

Regarding sales globally, Pfiefer told investors, “Access has been running at a really healthy clip, and we expect that to continue due to all the demand drivers… With regard to the global outlook, [the] U.S. is our biggest market, of course, and the U.S. is really healthy. When you look at our [guidance], you see that we’re going to increase our revenues for the year in the high single digits, I think 8% or 9% in terms of the revenue growth.

“The only area that has turned not so good is Europe. Our European business this year is down… We’ll continue to invest in Europe for the long-term future. But Europe is the one outlier for us today when you look at the global market.”

As a whole, Pfiefer said, Asia, South America and Latin America are “doing well” for access sales.

Oshkosh expects full-year sales for JLG to be at $5.4 billion.