Gehl Reports Second-Quarter Results

Following the end of the second quarter, Gehl Company reported sales of $66.7 million and net income – a stark contrast when compared to first quarter sales and net income of $126.8 million.

According to a press release, the drop in sales stems from unsteady economic conditions felt in all areas of the business sector, said William Gehl, chairman, president and chief executive officer. “While the U.S. economy has showed some signs of improvement, conditions in our markets continue to be challenging as we expected,” he stated. Specifically, lower sales stemmed from reduced telescopic handler and agricultural equipment sales.

However, construction equipment sales increased in 2002, coming in at $41.1 million, a 3 percent increase over $39.9 million in the second quarter of 2001. Skid loader sales declined in the second quarter, but the press release maintained that Gehl had gained market share because the sales declined less when compared to overall industry demand. The construction segment also benefited from new compact loader productgs in the second quarter and a new attachment business. “Our dealers and customers are being cautious given the current uncertainties in the economy and the negative news in the financial and credit markets,” Gehl said.

The author is Assistant Editor – Internet of Lawn & Landscape magazine and can be reached at kmohn@lawnandlandscape.com.