Gehl Company reported second quarter income from continuing operations of $8.8 million, or $0.71 per diluted share, for the quarter ended June 30, 2007, compared with income from continuing operations of $9.4 million, or $0.75 per diluted share, for the second quarter of 2006.

Net sales for the second quarter of 2007 were $135.3 million compared to net sales of $139.5 million in the second quarter of 2006. The strength of the company’s international markets, along with market share gains in the second quarter, partially offset the impact of the continued softness in the North American housing market. Total sales outside of North America increased 23 percent in the second quarter of 2007 versus the same period in 2006. While the North American telehandler market was down 26 percent in the second quarter of 2007 versus the same period in 2006, the company’s telehandler volume increased more than 9 percent.

Gross margin improved to 21.8 percent in the second quarter of 2007 compared to 21.6 percent in the second quarter of 2006. The increase was primarily driven by the favorable results the company continued to achieve from its added supply chain resources and investments in manufacturing equipment.

Selling, general and administrative expenses of $15.7 million during the 2007 second quarter compared to $15.3 million in the second quarter of 2006. As a percent of net sales, selling, general and administrative expenses increased to 11.6 percent compared to 10.9 percent in the prior year quarter, which partially reflected planned increases in research and development and information technology projects.

For the first six months of 2007, Gehl reported net sales from continuing operations of $250.6 million compared to $261.6 in the first six months of 2006. Income from continuing operations was $15.3 million, or $1.23 per diluted share, for the first six months of 2007 compared to $15.8 million, or $1.27 per diluted share, for the first six months of 2006.

“Despite weak U.S. residential construction markets, our second quarter revenues and earnings per share were solid. Strong international markets, a successful launch of our new RS5-19 telehandler and gross margin improvement resulting from our added supply chain resources all contributed to our sound second quarter results,” said William D. Gehl, chairman and chief executive officer.

2007 Full Year Outlook

Based on the company’s first half results, current backlog position and management’s expectation that the North American housing market will continue to experience weakness for the balance of 2007, the company adjusted its 2007 full year outlook. The company expects net sales from continuing operations in the range of $465 million to $485 million and earnings per diluted share from continuing operations of $2.05 to $2.25.

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