Earnings Call Excerpt
Gehl Company (GEHL)
Q2 2008 Earnings Call
July 28, 2008 2:00 pm ET
Executives
William D. Gehl – Chairman of the Board & Chief Executive Officer
Malcolm F. Moore – President & Chief Operating Officer
Shannon Van Dyke – Corporate Controller
Analysts
James Bank – Sidoti & Company
Charles Brady – BMO Capital Markets
Robert McCarthy – Robert W. Baird & Co., Inc.
Presentation
Operator
Welcome to Gehl Company’s conference call to discuss its second quarter 2008 financial results. (Operator Instructions)
Before I turn the call over to the company, please note that today’s conference call, including answers to your questions, will include statements that Gehl Company believes to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters the company has described in its Form 8K filed today with the SEC and other filings with the SEC. The company disclaims any obligation to update these forward-looking statements.
I will now turn the call over to William Gehl, Chairman and Chief Executive Officer of Gehl Company.
William D. Gehl
Welcome to Gehl Company’s second quarter earnings conference call. With me today are Mac Moore, President and Chief Operating Officer, Mike Mulcahy, Vice President and General Counsel and Shannon Van Dyke, Corporate Controller.
In the second quarter of 2008, our business exhibited strength in several areas. The company gained market share in its two key product categories: skid loaders and telehandlers, continued cost saving initiatives and generated strong international sales with skid loader shipments outside of North America now representing 47% of total skid loader shipments. In the second quarter of 2008, the company generated net sales of $111.1 million compared to net sales of $135.3 million in the same period one year earlier. Net income from continuing operations was $5.2 million or $0.43 per diluted share. This compares with net income from continuing operations of $8.8 million or $0.71 per diluted share for the second quarter of 2007.
Our view of 2008 remains generally unchanged as the diversification of our serve markets including commercial construction, agriculture and international markets will partially offset continued challenges in the domestic residential construction market and decreased capital spending by large rental companies. Net sales in the first quarter of 2008 were $111.1 million compared to first quarter 2007 net sales of $135.3 million. The combination of robust agricultural markets, strong international sales and market share gains in the company’s two key product categories has partially offset the impact attributable to weakness in the U.S. residential housing sector. International markets continued to perform well as sales outside of the United States grew to 30% of total company sales in the second quarter of 2008 compared to 26% in the same period of 2007.
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