Exhibit 99.1
[JLG logo] PRESS RELEASE
JLG INDUSTRIES, INC. FOR IMMEDIATE RELEASE
1 JLG Drive
McConnellsburg, PA 17233-9533
Telephone (717) 485-5161 CONTACT: JUNA ROWLAND
Fax (717) 485-6417 DIRECTOR - CORPORATE & INVESTOR RELATIONS
www.jlg.com (240) 313-1816, IR@JLG.COM
JLG CONTINUES FOCUS ON LONGER-TERM STRATEGY
STREAMLINES OPERATIONS AND REDUCES COSTS
MCCONNELLSBURG, PA, JANUARY 6, 2003 - JLG Industries, Inc. (NYSE: JLG)
today announced further actions of its ongoing longer-term strategy to
streamline operations and reduce fixed and variable costs. As part of JLG's
capacity rationalization plan commenced in early 2001, the 130,000-square foot
facility in Bedford, Pennsylvania, which currently produces selected scissor
lift models, will be temporarily idled and production integrated into the
Company's Shippensburg, Pennsylvania facility. Additionally, reductions in
selling, administrative and product development costs will result from changes
in the global organizational and process consolidations. When these changes are
fully implemented, the Company expects to generate approximately $20 million in
annualized savings at a cost of $9.5 million representing a payback of
approximately six months.
"While facing the challenges of this economy, our most recent actions are
consistent with the broader realignment efforts of our three-year,
multi-dimensional strategic plan to further optimize performance," said Bill
Lasky, Chairman of the Board, President and Chief Executive Officer. "Over the
last 18 months, we focused on enhancing the business using a three-point
approach as a tactical guide for continued growth and increased profitability.
The first point addresses the additional capacity created by ongoing
manufacturing process improvements; the second improves standardization and
commonality of product lines; and the third focuses on global supply chain
management.
"Relative to the first point, we have been focusing on enhancing the
business for increased profitability and growth by ongoing manufacturing process
improvements. Over the last two years, the additional production capacity
created has resulted in the permanent closures of two assembly facilities and
the temporary idling of another. Production of aerial work platforms will now be
effectively focused in three facilities: McConnellsburg, Pennsylvania;
Shippensburg, Pennsylvania; and Maasmechelen, Belgium.
"Additionally, during this same time period, we established our current
sales and service operations model for Europe, even as we continued to serve our
international customers through a parallel operation based in the UK. This
service model has proven more effective and efficient than its predecessor.
Therefore, we will be eliminating the redundant operation and reducing headcount
in Europe by 36 people without sacrificing our ability to satisfy customer
demands.
(more)
JLG Industries, Inc. - page 2
"The second point of our enhancement plan concentrates on continuing to
transition to a new manufacturing model that reinforces the standardization and
commonality factors of product design. We expect to complete the transition over
the next 1 to 2 years, which will provide greater manufacturing flexibility. Our
focus on global supply chain management, the third point of our plan, has
already resulted in European sourcing of components for both our Belgium-based
operations and US-based production facilities."
Jim Woodward, Executive Vice President and Chief Financial Officer said,
"Clearly this has been a difficult decision as the team members at Bedford and
Shippensburg have accomplished dramatic productivity improvements. We will be
reducing a total of 189 people globally and transferring 99 production jobs from
the Bedford operations to the Shippensburg facility. Production of scissor
lifts, which are now assembled in Bedford, will be integrated into the Company's
newer and more flexible 300,000-square foot facility in Shippensburg by fiscal
year end and Bedford production team members will be afforded transfer
opportunities.
"These actions will result in $3.5 million of restructuring costs, $4.4
million of restructuring-related costs, and $1.6 million of capital
expenditures. Almost all of these expenses will be cash charges, which will be
recorded over the next three quarters. In the current fiscal quarter, estimated
restructuring charges of $1.3 million will be combined with capital expenditures
of $200 thousand for a total cash outlay of $1.5 million. Our top priorities
over the near term continue to focus on reducing working capital, reducing cost
and improving free cash flow."
JLG Industries, Inc. is the world's leading producer of mobile aerial work
platforms and a leading producer of telehandlers and telescopic hydraulic
excavators marketed under the JLG(R) and Gradall(R) trademarks. Sales are made
principally to rental companies and distributors that rent and sell the
Company's products to a diverse customer base, which include users in the
industrial, commercial, institutional and construction markets. JLG's
manufacturing facilities are located in the United States and Belgium, with
sales and service locations on six continents.
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are not guarantees of future performance, and involve a number of
risks and uncertainties that could cause actual results to differ materially
from those indicated by the forward-looking statements. Important factors that
could cause actual results to differ materially from those suggested by the
forward-looking statements include, but are not limited to, the following: (i)
general economic and market conditions, including political and economic
uncertainty in areas of the world where we do business; (ii) varying and
seasonal levels of demand for our products and services; and (iii) costs of raw
materials and energy; as well as other risks as detailed in the Company's SEC
reports, including the report on Form 10-Q for the quarter ended October 31,
2002.
For more information, visit www.jlg.com.
Note: Information contained on our website is not incorporated
by reference into this release.
# # #