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GEHL
Gehl Company Tel:262/334-9461
143 Water Street Fax: 262/334-6603
CONTACT: P.O. Box 179 http://www.gehl.com
Kenneth Hahn (investors) West Bend, WI 53095-0179
Vice President, Finance & Treasurer USA
262-334-6632
News Release
Drew Brown/Andrew Cole (media)
Citigate Sard Verbinnen
212-687-8080
GEHL COMPANY COMMENTS ON OUTLOOK FOR SECOND QUARTER
Provides Update on Exploration of Strategic Alternatives
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WEST BEND, WI, June 26, 2001 - Gehl Company (Nasdaq: GEHL), a manufacturer
of light construction and agricultural equipment, today announced that based on
continuing soft economic conditions and related weakness in the construction
equipment market, particularly the steep drop in the telescopic handler market
which is down 27% industry-wide through May, the Company expects to report net
sales for the second quarter ending June 30, 2001 of $74.5 to $76.0 million and
earnings in the range of $.52 to $.57 per diluted share. The Company previously
projected net sales of $78.5 to $80.5 million and earnings of $.61 to $.67 per
diluted share.
Gehl reiterated its previous guidance for full year 2001 earnings of $1.52
to $1.62 per diluted share, although it said that results will likely be towards
the lower end of the range.
"While we are seeing some encouraging signs in our agricultural equipment
business - and despite holding or gaining market share in a number of product
lines across both our construction and agricultural businesses - we continue to
be impacted by the slowdown in the economy and the resulting significant decline
in industry-wide spending in the light construction equipment market," said
William D. Gehl, Chairman, President and CEO. "We are not immune to the
industry-wide impacts of lower rental rates for compact construction equipment -
particularly telescopic handlers - as well as the adverse effects of the weak
Euro on export shipments and a dealer community that is cautious about adding
inventory. Although we are lowering our expectations for the current quarter, we
believe that we should be able to meet the lower end of previous guidance for
the full year."
"In our agricultural business, we are making solid progress in introducing
additional compact construction products to selected Ag equipment dealers, and
we are experiencing strong demand for our recently launched round balers.
Improved domestic milk prices - which we expect to continue - have also
contributed to the strengthening of this business," said Gehl. "As for our
construction business, when the market turns upward, we will be well positioned
to capitalize on our diverse product mix, the ongoing introduction of new skid
loaders and telescopic handlers, and the strength of our dealer distribution
network. We remain committed to delivering high quality products to the
marketplace and focused on creating value for our shareholders."
Update on Strategic Review Process
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As announced on May 9, 2001, Gehl is engaged in the process of reviewing
its strategic alternatives, including the possible sale of the Company. Numerous
U.S. and international entities have expressed interest in pursuing a business
combination transaction or other strategic relationship with the Company. Gehl
has begun the second stage of the review process, which the Company expects to
continue over the next six to eight weeks.
About Gehl Company
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Gehl Company (Nasdaq: GEHL) is a leading manufacturer of equipment used
worldwide in construction and agricultural markets. Founded in 1859, Gehl is
headquartered in West Bend, WI, with manufacturing facilities in West Bend, WI;
Lebanon, PA; Madison and Yankton, SD; and Owatonna, MN. The Company markets its
products under the Gehl(R) and Mustang(R) brand names. Mustang product
information is available at www.mustangmfg.com. Gehl Company information is
available at www.gehl.com or contact: Gehl Company, 143 Water Street, West Bend,
WI 53095 (telephone: 262-334-9461).
Forward Looking Statements
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Gehl Company intends that certain matters discussed in this press release
are "forward-looking statements" intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform Act of 1995.
All statements other than statements of
historical fact, including statements regarding future market conditions, the
review of the Company's strategic alternatives, and the Company's future sales
and earnings, are forward-looking statements. When used in this press release,
words such as the Company "believes," "expects" or "projects" or words of
similar meaning are generally intended to identify forward-looking statements.
These forwarding-looking statements are not guarantees of future performance and
are subject to certain risks, uncertainties, assumptions and other factors, some
of which are beyond the Company's control, that could cause actual results to
differ materially from those anticipated as of the date of this press release.
Factors that could cause such a variance include, but are not limited to,
unanticipated changes in general economic and capital market conditions, the
Company's ability to implement successfully its strategic initiatives,
unanticipated developments related to the Company's review of its strategic
alternatives, market acceptance of newly introduced products, the cyclical
nature of the Company's business, the Company's and its customers' access to
credit, competitive pricing, product initiatives and other actions taken by
competitors, disruptions in production capacity, excess inventory levels, the
effect of changes in laws and regulations (including government subsidies and
international trade regulations), technological difficulties, changes in
environmental laws, and employee and labor relations. Shareholders, potential
investors, and other readers are urged to consider these factors in evaluating
the forward-looking statements and are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking statements included in this
release are only made as of the date of this release, and the Company undertakes
no obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances. In addition, the Company's expectations for
fiscal year 2001 are based in part on certain assumptions made by the Company,
including those relating to commodities prices, which are strongly affected by
weather and other factors and can fluctuate significantly, housing starts and
other construction activities, which are sensitive to, among other things,
interest rates and government spending, and the performance of the U.S. economy
generally. The accuracy of these or other assumptions could have a material
effect on the Company's ability to achieve its expectations.
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