Gehl Forecasts Softer Market

“We have just created a challenging year for the company after seven consecutive years of progressively increasing sales and earnings,” reported William Gehl, chairman, president and CEO.

Construction equipment, Gehl’s division that includes the landscape contracting industry, saw sales drop 13 percent for the year, with most of the challenges occurring in the second half of the year when many manufacturers encountered challenges due to the slowing economy. The landscape industry continues to support Gehl’s various product offerings, as it reported that shipments of compact excavators and mini loaders increased throughout the year.

“The company believes that, in general, the overall economics of its markets will continue to be soft, especially through the first half of 2001,” announced a corporate press release. In particular, Gehl expects the skid-steer market to continue growing, although perhaps not at the double-digit pace seen in recent years. Demand for compact excavators, meanwhile, is expected to jump by 10 to 15 percent.

In fact, landscape professionals should expect to see a steady stream of new product introductions from Gehl, some of which will be marketed under Gehl’s Mustang brand (www.mustangmfg.com). “In the first half of 2001, the company will begin shipping eight new skid loader models,” the firm reported.

In addition, the company confirmed it will continue evaluating acquisition opportunities in order “to expand its compact equipment product offerings in the U.S. markets and to enhance its distribution capabilities in Europe and elsewhere.”