GEHL [GRAPHIC OMITTED]
Gehl Company Tel: 262/334-9461
CONTACTS: 143 Water Street Fax: 262/334-6603
Kenneth Hahn (investors) P.O. Box 179 http://www.gehl.com
Vice President, Finance & Treasurer West Bend, WI 53095-0179
262-334-6632 USA
Drew Brown/Andrew Cole (media)
Citigate Sard Verbinnen
212-687-8080
IMMEDIATE RELEASE News Release
GEHL COMPANY REVISES 2001 OUTLOOK
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WEST BEND, WI, September 13, 2001 - Gehl Company (Nasdaq: GEHL), a
manufacturer of light construction and agricultural equipment, today said
increasing softness in construction equipment sales, coupled with the continued
decline in the U.S. and European economies and the continuing decline in the
manufacturing sector in general, has led the Company to reduce its expectations
for the second half of 2001. Gehl expects to report full year 2001 net sales of
$256 million to $261 million and earnings in the range of $1.13 to $1.18 per
diluted share before expenses incurred with respect to the ongoing strategic
alternatives review. The Company's previous earnings guidance for full-year
fiscal 2001 was approximately $1.52 per diluted share.
"The impact of the deteriorating global economy on the compact
construction equipment industry, including reduced demand, slow inventory
turnover among dealers, the weak Euro, excessive used equipment levels and
lowered rental rates, are all contributing to our reduced revenue and earnings
expectations for the full year," said William D. Gehl, Chairman, President and
CEO. "Although we are pleased with the year-to-year growth of Gehl's
agricultural equipment business, lower construction equipment sales have caused
us to reduce our financial forecasts for the balance of 2001. We are adjusting
production to reflect the current conditions and taking appropriate actions to
reduce costs in line with the weaker construction equipment market."
Although current economic conditions have caused the Company to lower its
expectations, Gehl has benefited from the introduction of several new products
in 2001, specifically the 7000 series skid loader and the new line of round
balers. The move toward distributing more compact construction equipment through
selected Ag dealers has also made a positive contribution to
sales. Gehl commented, "While the year is becoming more challenging, we are
still profitable and positioned to take advantage of any market improvements in
the future."
Commenting on the progress of the Company's ongoing review of strategic
alternatives, Gehl said, "The process will be completed shortly. We will share
the results with all shareholders once the process has been concluded."
Forward Looking Statements
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 the Company's projected sales and earnings, and the plans and
objectives of management for future operations, are 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, 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, the
impact of any acquisition effected by the Company, 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.
About Gehl Company
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).
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