Gehl swings to 1Q loss on weak construction market, charge

WEST BEND, Wis.—Gehl Co., which makes construction and agricultural equipment, said Friday it swung to a first-quarter loss, blaming the continued slowdown in the North American housing market and a hefty one-time charge.

Shares fell 60 cents, or 3.2 percent, to $17.90 in premarket trading after closing Thursday at $18.50.

The company posted a loss of $822,000 or 7 cents per share, compared with a year-ago profit of $6.3 million, or 51 cents per share.

Excluding a one-time charges related to the adoption of new accounting standards, the company earned $600,000, or 5 cents per share, in the 2008 first quarter.

Analysts, who typically exclude one-time items, were expecting a profit of 8 cents per share, according to a poll by Thomson Financial.

Revenue fell 29 percent to $82.2 million from $115.2 million a year earlier.

The company said the quarter was hurt by continuing weakness in the North American residential construction market and lower investments by equipment rental companies.

Gehl maintained its earnings predictions for the full year.

• Searched
• E-Mailed