Gehl To Discontinue Ag Implement Lines

Posted on April 3, 2006

Gehl Co. has announced plans to discontinue the manufacturing and distribution of its agricultural implement product lines. The company's West Bend, Wis., agricultural implement manufacturing operations will permanently close following the wind down of operations over the next 60 days.

The product line discontinuation is expected to result in an after-tax charge to the company's 2006 earnings of approximately $9.5 million and a reduction in employee headcount of approximately 140 individuals to match the decline in manufacturing and administrative activities associated with its agricultural implement product lines. The location of the company's corporate headquarters in West Bend will not be impacted by this action.

"Over the last 20 years, there has been a continuous consolidation occurring in the U.S. dairy industry,” said William D. Gehl, Gehl’s chairman and CEO. Many of our small dairy farmer customers have either retired or sold their operations to larger producers. Consequently, the customer base for our agricultural implement lines has declined dramatically. Although we are eliminating our agricultural implement product lines, we remain fully committed to our agricultural equipment dealers and customers through our continuing supply of compact equipment and ongoing parts and service support for the ag implement product lines."