Gehl recently announced record third quarter net sales from continuing operations of $121 million for the quarter ended Sept. 30, an increase of 13 percent from last year’s third quarter net sales from continuing operations of $107.3 million. Third quarter income from continuing operations reached $7.4 million, or $0.59 per diluted share, compared to 2005’s third quarter income from continuing operations of $5.7 million, or $0.52 per diluted share.
Operating profit (or income from operations) also improved, contributing 10 percent of net sales, which was due to an increase in gross margin of 21.8 percent compared to the previous year’s 20.6 percent. The increase in gross margin resulted from enhanced product price realization, in addition to the favorable impact of on-going cost reduction initiatives.
William D. Gehl, chairman and chief executive officer of Gehl, says these record results reflect the company’s progress. “Notwithstanding the weakening U.S. housing market, the fundamentals of our global markets remain solid and we are on track to achieve our full year 2006 sales and earnings outlook.”
During the first nine months of this year, the company reported net sales from continuing operations totaling $382.6 million, an 11 percent increase from the first nine months of 2005’s net sales in the same category.