Exhibit 99.2
[JLG LOGO] PRESS RELEASE
FOR IMMEDIATE RELEASE
JLG INDUSTRIES, INC. CONTACT: JUNA ROWLAND
1 JLG Drive DIRECTOR - CORPORATE & INVESTOR RELATIONS
McConnellsburg, PA 17233-9533 (240) 313-1816, IR@JLG.COM
Telephone (717) 485-5161
Fax (717) 485-6417
www.jlg.com
JLG INDUSTRIES, INC. COMPLETES PURCHASE OF OMNIQUIP
BEGINS INTEGRATION OF TELEHANDLER PRODUCTION WITH CLOSURE OF FACILITIES
MCCONNELLSBURG, PA, AUGUST 4, 2003 - JLG Industries, Inc. (NYSE: JLG)
today announced it has completed the purchase of the OmniQuip business unit of
Textron. JLG purchased the assets of Trak International, Inc., which include all
operations relating to the Sky Trak(R) and Lull(R) brand telehandler products,
for a purchase price of $100 million. Sales for the purchased operations in
calendar year 2002 totaled approximately $217 million.
"We are pleased that this transaction has been completed in such a short
time period," commented Bill Lasky, Chairman of the Board, President and Chief
Executive Officer. "We have formed a dedicated integration team which has
developed a comprehensive plan designed to fully integrate the OmniQuip
operations into JLG. To this end, today, we have communicated our vision for the
integration with the OmniQuip people and have announced our intended closing of
the Port Washington, WI facility with the process to begin in October and to be
completed over the following 12 months. The Mendota Heights, MN facility closure
is expected to be completed concurrently over a nine-month period. However, we
expect to retain the best people, particularly within the engineering and
military contract staff, as well as continue the operations at the Oakes, ND
facility. With our successful transfer of our own telehandler production from
our Orrville, OH facility into our McConnellsburg operations last year, we have
an experienced team to implement our integration plan for the Sky Trak and Lull
brand machines.
"These identified 'hard' synergies represent ongoing cost savings of
approximately $27 million annually. Furthermore, expected 'soft' synergies from
common components, product designs and distribution channels will result in
additional savings going forward. When combined with JLG's industry-leading
after-sales and support services, these synergies will offer our customers
significantly increased value."
Commenting on the overall financial impact, Jim Woodward, Executive Vice
President and Chief Financial Officer stated, "The integration plan involves
moving the telehandler production to our Pennsylvania facilities and, as a
result, we will incur estimated expenditures totaling approximately $45 million
over a four-year period. In addition to the $100 million purchase price, we will
capitalize approximately $24 million associated
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JLG Industries, Inc. - page 2
with personnel reductions, facility closings and other restructuring costs,
while approximately $21 million in increased pre-tax costs is associated with
integration expenses such as plant start up costs and facility operating
expenses that will impact the income statement. However, ongoing savings from
hard synergies after the absorption of integration costs will result in
approximately $27 million annually.
"The fiscal 2004 impact will be approximately $28 million of which $18
million is associated with personnel reductions, facility closings and other
restructuring costs capitalized as part of the purchase, with approximately $10
million in pre-tax costs to impact the income statement. Also, of the $28
million amount, $24 million will be cash and $4 million will be non-cash
charges. Approximately $19 million of synergies are expected to be realized this
year.
"From a revenue mix standpoint, the impact on JLG is significant -
reducing the dependency on aerial work platforms with a better balance between
aerials and telehandlers. This acquisition further enhances JLG's position as an
industry leader and provides our customers with a broader choice of products and
services."
The Port Washington, WI, Mendota Heights, MN, and Oakes, ND facilities
represent approximately 500,000, 40,000 and 78,000 square feet of space,
respectively and employ a total of approximately 530 people.
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), Gradall(R), Lull(R) and Sky Trak(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 includes
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; (iii) limitations on
customer access to credit for purchases; (iv) limitations on our ability to
finance future acquisitions and integrate acquired businesses; and (v) 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 April 30,
2003.
For more information, visit www.jlg.com.
NOTE: Information contained on our website is not incorporated by reference into
this press release.
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