JLG to recall hundreds of workers

November 21, 1997

JLG to recall hundreds of workers


Staff Writer, Chambersburg

McCONNELLSBURG, Pa. - JLG Industries Inc. expects to recall several hundred workers for its boom lift production at its McConnellsburg headquarters beginning next month, company officials said Thursday.

"It's not a one-shot deal. It's going to be in groups," said Demi Hetrick, director of the company's corporate relations.

About 120 of the 175 employees laid off at two Bedford, Pa., scissor-lift manufacturing plants were recalled a month ago, lowering the company's total work force reduction to about 700.

JLG announced in July it would lay off 850 employees - about 30 percent of its work force - in September, as a result of an oversaturation of products in the marketplace.


The company, Fulton County's largest employer with more than 2,500 workers, also closed a production facility in Fort Littleton, Pa., and relocated the manufacturing of all vertical lift products to the McConnellsburg plant.

The most recent employee recall announcement was made in conjunction with the company's reported results for the first quarter of fiscal 1998 that ended Oct. 31.

The manufacturer of aerial work platforms earned $4.6 million on sales of $95.6 million, according to the report.

First-quarter sales were 20 percent below the record $120.2 million for the previous year and net income was 63 percent lower than last year's record $12.3 million, the report said.

But results for the first quarter exceeded the company's previously announced expectations and the range of analysts' estimates by about a nickel more per share, Hetrick said.

The company also reported better-than-expected international sales, which totaled $39.4 million, or 41 percent of first-quarter revenues, the report said.

L. David Black, the company's chairman, president and chief executive officer, said he expects a stronger second half of the fiscal year as long as rental fleet utilization rates remain strong and rental rates continue to improve.

That's one reason for the recall of workers, who will be needed to support production increases to meet the expected stronger second-half demand, Black said.

"The forecast is supported by customer surveys and industry analyses that predict ongoing growth in industrial and construction markets, as well as in the rental industry during calendar 1998. These trends assume continued stability in U.S. interest rates and ongoing, steady growth in the domestic economy," Black said.

The quarter also benefited from a lower provision for income taxes associated with international sales and profits, and higher service parts sales, according to the report.

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