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JLG temporarily shuts down in wake of economic slump

April 27, 2001

JLG temporarily shuts down in wake of economic slump



McConnellsburg, Pa.

By RICHARD F. BELISLE / Staff Writer, Waynesboro


JLG Industries, until now seemingly immune from the economic slump that has hit area manufacturing plants, Thursday announced a temporary shutdown that will send 1,700 workers home for three weeks.

The temporary closings at JLG plants in McConnellsburg, Shippensburg, Pa., and Bedford, Pa., are necessary to adjust an excess in inventory caused by a slowdown in orders from customers, a company spokesman said.

The first shutdown, for 10 days, started Monday and will run through May 4. The second, for four days, starts May 29 and runs through June 1.

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Sam Swope, vice president of human resources at JLG, said about 1,100 workers at the company's main manufacturing plant in McConnellsburg will be affected by the shutdown. Another 600 employees will be sent home from the Shippensburg and Bedford plants, he said.

Workers eligible for vacation pay can opt to use it during the shutdown, Swope said. The workers' benefits will continue during the shutdown, and all employees are eligible to sign up for jobless benefits.

Swope said the reasons for the shutdowns have been explained to all JLG employees.

The slowing economic climate and related tightening in credit markets is contributing to slower-than-expected customer orders.

The company announced that fiscal third quarter results are forecast to be in the range of 29 cents to 34 cents per diluted share, compared to 40 cents per diluted share a year ago.

Management's previous earnings per share estimate for the quarter was a range of 46 cents to 50 cents.

"Order patterns during late March and early April have traditionally been key indicators of demand strength for our products as we enter the peak summer season," said Bill Lasky, chairman of the board, president and chief executive officer in prepared remarks.

Swope said company officials hope the three-week shutdown will be long enough to reduce the inventory.

Swope said the company will continue to monitor the situation and make decisions as needed.

JLG makes aerial manlifts, boom and scissors.

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