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JLG lowers its earning forecast

July 17, 2002

McCONNELLSBURG, Pa. - JLG Industries Inc. said Tuesday that it has revised its earnings estimates due to continued uncertainty in the economy and lower levels of nonresidential construction.

Results for fiscal 2002 ending July 31 are now expected to be in the range of $.40 to $.45 per diluted share without repositioning and goodwill impairment charges, compared to $.60 to $.65 previously forecasted, the company announced in a prepared statement.

Fourth-quarter sales are now expected to be approximately 15 percent lower than the comparable period a year ago, according to the statement.

"Orders in late June and early July are well below our expectations and pricing is very competitive," said Bill Lasky, chairman of the board, president and chief executive officer.

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"During the last 30 days, increased uncertainty in the economy and the resulting impact on financial and credit markets have caused many of our large customers to become much more cautious," Lasky said.

Lasky said the recovery may take longer than the company expected in spring. "Unfortunately, this uncertainty comes during the seasonally strongest period in our fiscal year," Lasky said.

"We cannot control the economy, but we can control our response to it," said Jim Woodward, executive vice president and chief financial officer. "In the short term, JLG's experienced management team will continue to maintain tight fiscal control and focus on cash flow."

Woodward said the previously announced closure of JLG's Orrville, Ohio, facility and movement of telehandler production to the McConnellsburg plant is on schedule.

JLG will report fourth-quarter and full-year earnings results Thursday, Sept. 19.

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 and Gradall trademarks.

JLG had about 2,000 employees in McConnellsburg two years ago, but after a series of layoffs, the number was down to about 1,200 earlier this year, according to company officials.

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