# SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

# FORM 10-Q

|[X]   | QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
|----- | ----------------------------------------------------------------------------------------
|      | For the Quarterly Period Ended March 27, 2004                                           
|      | OR                                                                                      
|[   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|      | For the transition period from ____________________to____________________               

Commission File Number  0-18110

|Gehl Company                                          
|------------------------------------------------------
|(Exact name of registrant as specified in its charter)

|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Wisconsin                                                      |  | 39-0300430                          
|(State or other jurisdiction of
incorporation or organization) |  | (I.R.S. Employer Identification No.)
|143 Water Street, West Bend, WI                                |  | 53095                               
|(Address of principal executive offices)                       |  | (Zip Code)                          

|(262) 334-9461                                      
|----------------------------------------------------
|(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days.

Yes  X          No

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange
Act).

Yes            No  X

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest
practicable date.

|                             |  |                              
|---------------------------- |  | -----------------------------
|Class                        |  | Outstanding at March 27, 2004
|Common Stock, $.10 Par Value |  | 5,410,937                    

---

# Gehl Company

# FORM 10-Q

# March 27, 2004

# Report Index

|                                  | Page No.                                                                                                                                 
|--------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------
|Part I:     Financial Information |                                                                                                                                          
|Item 1                            | Financial Statements                                                                                                                     
|                                  | Condensed Consolidated Statements of Income for the
           Three-Month Periods Ended March 27, 2004 and
           March 29, 2003.   
|                                  | Condensed Consolidated Balance Sheets at March 27, 2004,
           December 31, 2003, and March 29, 2003                                
|                                  | Condensed Consolidated Statements of Cash Flows for
           the Three-Month Periods Ended March 27, 2004 and
           March 29, 2003
|                                  | Notes to Condensed Consolidated Financial Statements                                                                                     
|Item 2                            | Management's Discussion and Analysis of Results ofOperations and Financial Condition                                                     
|Item 3                            | Quantitative and Qualitative Disclosures about Market Risk                                                                               
|Item 4                            | Controls and Procedures                                                                                                                  
|Part II:     Other Information    |                                                                                                                                          
|Item 2                            | Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities                                                         
|Item 6                            | Exhibits and Reports on Form 8 K                                                                                                         
|Signatures                        | 19                                                                                                                                       

2

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# PART I  FINANCIAL
INFORMATION

# Item 1.   Financial
Statements

# Gehl Company and
SubsidiariesCondensed Consolidated
Statements of Income(unaudited and in
thousands, except per share data)

|                                             | Three Months Ended | 
|-------------------------------------------- | ------------------ | 
|
|Net sales                                    |                    | 
|Cost of goods sold                           |                    | 
|                                             |                    | 
|Gross profit                                 |                    | 
|Selling, general and administrative expenses |                    | 
|Restructuring and other charges              |                    | 
|                                             |                    | 
|Total operating expenses                     |                    | 
|                                             |                    | 
|Income from operations                       |                    | 
|Interest expense                             |                    | 
|Interest income                              |                    | 
|Other (expense) income, net                  |                    | 
|                                             |                    | 
|Income before income taxes                   |                    | 
|Provision for income taxes                   |                    | 
|                                             |                    | 
|Net income                                   |                    | 
|                                             |                    | 
|Net income per share:                        |                    | 
|Diluted                                      |                    | 
|                                             |                    | 
|Basic                                        |                    | 
|                                             |                    | 

The accompanying notes
are an integral part of the financial statements.

3

---

# Gehl Company and
SubsidiariesCondensed Consolidated
Balance Sheets(unaudited and in
thousands, except share data)

|                                                  | March 27,2004 |  | December 31,2003 |         | March 29,2003 |  
|------------------------------------------------- | ------------- |  | ---------------- | ------- | ------------- | -
|Assets                                            |               |  |                  |         |               |  
|Cash                                              |               |  | $                | 2,774   |               | $
|Accounts receivable - net                         |               |  |                  | 122,868 |               |  
|Finance contracts receivable - net                |               |  |                  | 4,980   |               |  
|Inventories                                       |               |  |                  | 34,287  |               |  
|Deferred income tax assets                        |               |  |                  | 7,128   |               |  
|Prepaid expenses and other current assets         |               |  |                  | 4,655   |               |  
|                                                  |               |  |                  |         |               |  
|Total current assets                              |               |  |                  | 176,692 |               |  
|                                                  |               |  |                  |         |               |  
|Property, plant and equipment - net               |               |  |                  | 34,780  |               |  
|Finance contracts receivable - net, non-current   |               |  |                  | 2,641   |               |  
|Goodwill                                          |               |  |                  | 11,748  |               |  
|Other assets                                      |               |  |                  | 12,548  |               |  
|                                                  |               |  |                  |         |               |  
|Total assets                                      |               |  | $                | 238,409 |               | $
|                                                  |               |  |                  |         |               |  
|Liabilities and Shareholders' Equity              |               | 
|Current portion of debt obligations               |               |  | $                | 159     |               | $
|Accounts payable                                  |               |  |                  | 42,855  |               |  
|Accrued and other current liabilities             |               |  |                  | 32,240  |               |  
|                                                  |               |  |                  |         |               |  
|Total current liabilities                         |               |  |                  | 75,254  |               |  
|                                                  |               |  |                  |         |               |  
|Line of credit facility                           |               |  |                  | 42,070  |               |  
|Long-term debt obligations                        |               |  |                  | 185     |               |  
|Deferred income tax liabilities                   |               |  |                  | 1,742   |               |  
|Other long-term liabilities                       |               |  |                  | 17,618  |               |  
|                                                  |               |  |                  |         |               |  
|Total long-term liabilities                       |               |  |                  | 61,615  |               |  
|                                                  |               |  |                  |         |               |  
|Common stock, $.10 par value, 25,000,000 shares   |               | 
|authorized, 5,410,937, 5,333,439 and 5,355,494    |               | 
|shares outstanding, respectively                  |               |  |                  | 541     |               |  
|Preferred stock, $.10 par value, 2,000,000 shares |               | 
|authorized, 250,000 shares designated as Series A |               | 
|preferred stock, no shares issued                 |               |  |                  | --      |               |  
|Capital in excess of par                          |               |  |                  | 7,535   |               |  
|Retained earnings                                 |               |  |                  | 105,007 |               |  
|Accumulated other comprehensive loss              |               |  |                  | (11,543 | )             |  
|                                                  |               |  |                  |         |               |  
|Total shareholders' equity                        |               |  |                  | 101,540 |               |  
|                                                  |               |  |                  |         |               |  
|Total liabilities and shareholders' equity        |               |  | $                | 238,409 |               | $
|                                                  |               |  |                  |         |               |  

The accompanying notes
are an integral part of the financial statements.

4

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# Gehl Company and
SubsidiariesCondensed Consolidated
Statements of Cash Flows(unaudited and in
thousands)

|                                                        | Three Months Ended | 
|------------------------------------------------------- | ------------------ | 
|
|Cash Flows from Operating Activities                    |                    | 
|Net income                                              |                    | 
|Adjustments to reconcile net income to net cash         |                    | 
|used for operating activities:                          |                    | 
|Depreciation                                            |                    | 
|Amortization                                            |                    | 
|Cost of sales of finance contracts                      |                    | 
|Proceeds from sales of finance contracts                |                    | 
|Increase in finance contracts receivable                |                    | 
|Net changes in remaining working capital items          |                    | 
|                                                        |                    | 
|Net cash used for operating activities                  |                    | 
|                                                        |                    | 
|Cash Flows from Investing Activities                    |                    | 
|Property, plant and equipment additions                 |                    | 
|Proceeds from the sale of property, plant and equipment |                    | 
|Other assets                                            |                    | 
|                                                        |                    | 
|Net cash used for investing activities                  |                    | 
|                                                        |                    | 
|Cash Flows from Financing Activities                    |                    | 
|Proceeds from revolving credit loans                    |                    | 
|Repayments of other borrowings - net                    |                    | 
|Proceeds from issuance of common stock                  |                    | 
|Treasury stock purchases                                |                    | 
|                                                        |                    | 
|Net cash provided by financing activities               |                    | 
|                                                        |                    | 
|Net (decrease) increase in cash                         |                    | 
|Cash, beginning of period                               |                    | 
|                                                        |                    | 
|Cash, end of period                                     |                    | 
|                                                        |                    | 
|Supplemental disclosure of cash flow information:       |                    | 
|Cash paid (received) for the following:                 |                    | 
|Interest                                                |                    | 
|Income taxes                                            |                    | 

The accompanying notes
are an integral part of the financial statements.

5

---

# Gehl Company and
SubsidiariesNotes to Condensed
Consolidated Financial StatementsMarch 27, 2004(Unaudited)

# Note 1  Basis of
Presentation

The
condensed consolidated financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted pursuant to such rules and
regulations, although management believes that the disclosures are adequate to make the
information presented not misleading.

In
the opinion of management, the information furnished for the three-month periods ended
March 27, 2004 and March 29, 2003 includes all adjustments, consisting only of normal
recurring accruals, necessary for a fair presentation of the results of operations and
financial position of the Company. Certain prior year amounts have been reclassified to
conform to the current year presentation. Such reclassifications had no impact on
previously reported net income. Due in part to the seasonal nature of the Companys
business, the results of operations for the three months ended March 27, 2004 are not
necessarily indicative of the results to be expected for the entire year.

It
is suggested that these interim financial statements be read in conjunction with the
financial statements and notes thereto included in the Companys Annual Report on
Form 10-K for the year ended December 31, 2003 as filed with the Securities and Exchange
Commission.

# Note 2  Stock
Based Compensation

The
Company maintains stock option plans for certain of its directors, officers and key
employees and accounts for these plans under the recognition and measurement principles of
APB Opinion No. 25, Accounting for Stock Issued to Employees. No compensation
expense has been recognized for options granted under these plans as the option price was
equal to the market value of the Companys common stock on the date of grant.

The
effect on net income and earnings per share had the Company applied the fair value
recognition provisions of SFAS No. 123, Accounting for Stock-Based
Compensation, is presented below (in thousands, except per share data):

|                                                  | March 27,2004 |  | March 29,2003 |      
|------------------------------------------------- | ------------- |  | ------------- | -----
|Net income, as reported                           |               |  | $             | 2,905
|Less:  stock-based compensation expense           |               | 
|determined based on fair value method, net of tax |               |  |               | (152 
|                                                  |               |  |               |      
|Pro forma net income                              |               |  | $             | 2,753
|                                                  |               |  |               |      
|Diluted net income per share:                     |               | 
|As reported                                       |               |  | $             | .53  
|Pro forma                                         |               |  | $             | .50  
|Basic net income per share:                       |               | 
|As reported                                       |               |  | $             | .54  
|Pro forma                                         |               |  | $             | .51  

6

---

# Note 3  Income
Taxes

The
income tax provision is determined by applying an estimated annual effective income tax
rate to income before income taxes. The estimated annual effective income tax rate is
based on the most recent annualized forecast of pretax income, permanent book/tax
differences, and tax credits.

# Note 4  Inventories

If
all of the Companys inventories had been valued on a current cost basis, which
approximated FIFO value, estimated inventories by major classification would have been as
follows (in thousands):

|                            | March 27,2004 |  | December 31,2003 |         | March 29,2003 |  
|--------------------------- | ------------- |  | ---------------- | ------- | ------------- | -
|Raw materials and supplies  |               |  | $                | 14,026  |               | $
|Work-in-process             |               |  |                  | 3,379   |               |  
|Finished machines and parts |               |  |                  | 39,830  |               |  
|                            |               |  |                  |         |               |  
|Total current cost value    |               |  |                  | 57,235  |               |  
|Adjustment to LIFO basis    |               |  |                  | (22,948 | )             |  
|                            |               |  |                  |         |               |  
|                            |               |  | $                | 34,287  |               | $
|                            |               |  |                  |         |               |  

# Note 5  Product
Warranties and Other Guarantees

In
general, the Company provides warranty coverage on equipment for a period of up to twelve
months. The Companys reserve for warranty claims is established based on the best
estimate of the amounts necessary to settle future and existing claims on products sold as
of the balance sheet date. While the Companys warranty costs have historically been
within its calculated estimates, it is possible that future warranty costs could exceed
those estimates. The changes in the carrying amount of the Companys total product
warranty liability for the three-month period ended March 27, 2004 were as follows (in
thousands):

|                                                        | 
|------------------------------------------------------- | 
|Balance as of December 31, 2003                         | 
|Accruals for warranties issued during the period        | 
|Accruals related to pre-existing warranties             | 
|(including changes in estimates)                        | 
|Settlements made (in cash or in kind) during the period | 
|                                                        | 
|Balance as of March 27, 2004                            | 
|                                                        | 

7

---

# Note 6  Employee
Retirement Plans

The
Company sponsors two qualified defined benefit pension plans for certain of its employees.
The following table provides disclosure of the net periodic benefit cost (in thousands):

|For the three months ended:        | March 27,2004 |  | March 29,2003 |     
|---------------------------------- | ------------- |  | ------------- | ----
|Service cost                       |               |  | $             | 196 
|Interest cost                      |               |  |               | 670 
|Expected return on plan assets     |               |  |               | (753
|Amortization of prior service cost |               |  |               | 52  
|Amortization of net loss           |               |  |               | 311 
|                                   |               |  |               |     
|Net periodic benefit               |               |  | $             | 476 
|                                   |               |  |               |     
|                                   |               | 

In
April 2004, the Pension Funding Equity Act of 2004 (the Pension Funding Act)
was signed into law providing a temporary solution to several issues that arose from the
discontinuance of new-issue, 30-year Treasury Bonds several years ago. Under the Pension
Funding Act, companies will use high-quality corporate bond rates for key liability
measures in place of the extrapolated long-term treasury rates used prior to the Pension
Funding Act. This will reduce required pension contributions during 2004 and 2005. As a
result of the Pension Funding Act, the Companys estimated 2004 pension contributions
will be reduced from $7.7 million to $6.4 million. As of March 27, 2004, $0.6 million of
contributions have been made.

The
Company maintains an unfunded non-qualified supplemental retirement benefit plan for
certain management employees. The following table provides disclosure of the net periodic
benefit cost (in thousands):

|For the three months ended:        | March 27,2004 |  | March 29,2003 |    
|---------------------------------- | ------------- |  | ------------- | ---
|Service cost                       |               |  | $             | 73 
|Interest cost                      |               |  |               | 73 
|Amortization of prior service cost |               |  |               | 23 
|Amortization of net loss           |               |  |               | 13 
|                                   |               |  |               |    
|Net periodic benefit               |               |  | $             | 182
|                                   |               |  |               |    
|                                   |               | 

The
Company provides postemployment benefits to certain retirees, which includes subsidized
health insurance benefits for early retirees prior to their attaining age 65. The
following table provides disclosure of the net periodic benefit cost (in thousands):

|For the three months ended:           | March 27,2004 |  | March 29,2003 |   
|------------------------------------- | ------------- |  | ------------- | --
|Service cost                          |               |  | $             | 15
|Interest cost                         |               |  |               | 22
|Amortization of transition obligation |               |  |               | 6 
|Amortization of net loss              |               |  |               | 5 
|                                      |               |  |               |   
|Net periodic benefit                  |               |  | $             | 48
|                                      |               |  |               |   
|                                      |               | 

8

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# Note 7  Accounting
Pronouncements

In
December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003
(the Modernization Act) introduced a prescription drug benefit under Medicare,
as well as a federal subsidy to sponsors of retiree health care benefit plans. In January
2004, the Financial Accounting Standards Board (FASB) issued FASB Staff
Position (FSP) No. FAS 106-1, Accounting and Disclosure Requirements
Related to the Medicare Prescription Drug, Improvement and Modernization Act of
2003. This FSP permits a sponsor of a postretirement health care plan that provides
a prescription drug benefit to make a one-time election to defer accounting for the
effects of the Modernization Act if there is insufficient data, time or guidance available
to ensure appropriate accounting. As permitted by this FSP, the Company has elected to
defer the accounting for the effects of the Modernization Act. As a result, any measures
of the Companys accumulated postemployment obligation or net periodic postemployment
benefit cost in the condensed consolidated financial statements or accompanying notes do
not reflect the effects of the Modernization Act on the Companys postemployment
plan. Authoritative guidance on the accounting for the federal subsidy is pending. When
guidance is issued, the Company may be required to adjust previously reported information.

In
January 2003, the FASB issued FASB Interpretation No. 46, Consolidation of Variable
Interest Entities, an interpretation of ARB No. 51 (FIN 46). FIN 46
clarifies the application of Accounting Research Bulletin No. 51, Consolidated
Financial Statements to certain entities in which, among others, equity investors do
not have the characteristics of a controlling financial interest or do not have sufficient
equity at risk for the entity to finance its activities without additional subordinated
financial support from other parties. The consolidation provisions of FIN 46, as revised,
were effective immediately for interests created after January 31, 2003 and were effective
on March 31, 2004 for interests created before February 1, 2003. As of March 27, 2004, the
Company did not own an interest in any variable interest entities.

# Note 8  Net Income
Per Share and Comprehensive Income

Basic
net income per common share is computed by dividing net income by the weighted- average
number of common shares outstanding for the period. Diluted net income per common share is
computed by dividing net income by the weighted-average number of common shares and, if
applicable, common stock equivalents that would arise from the exercise of stock options.

A
reconciliation of the shares used in the computation of net income per share follows (in
thousands):

|                  | March 27,2004 |  | March 29,2003 |      
|----------------- | ------------- |  | ------------- | -----
|Basic shares      |               |  |               | 5,356
|Effect of options |               |  |               | 140  
|                  |               |  |               |      
|Diluted shares    |               |  |               | 5,496
|                  |               |  |               |      

Accumulated
other comprehensive loss is primarily comprised of minimum pension liability and foreign
currency translation adjustments. Comprehensive income was $2.7 million for the three
months ended March 27, 2004, which reflects the Companys net income reduced by $0.2
million in foreign currency translation adjustments. Comprehensive income was $0.6 million
for the three months ended March 29, 2003, which reflects the Companys net income
plus $0.1 million in foreign currency translation adjustments.

9

---

# Note 9  Business
Segments

The
Company operates in two business segments: construction equipment and agricultural
equipment. The long-term financial performance of the Companys reportable segments
is affected by separate economic conditions and cycles. The segments are managed
separately based on the fundamental differences in their operations.

Following is selected segment
information (in thousands):

|                               | March 27,2004 |  | March 29,2003 |       
|------------------------------ | ------------- |  | ------------- | ------
|Net Sales:                     |               |  |               |       
|Construction                   |               |  | $             | 54,420
|Agricultural                   |               |  |               | 30,267
|                               |               |  |               |       
|Consolidated                   |               |  | $             | 84,687
|                               |               |  |               |       
|Income (Loss) from Operations: |               | 
|Construction                   |               |  | $             | 4,172 
|Agricultural                   |               |  |               | 442   
|                               |               |  |               |       
|Consolidated                   |               |  | $             | 4,614 
|                               |               |  |               |       

# Note 10  Stock
Repurchases

In
September 2001, the Companys Board of Directors authorized a stock repurchase plan
providing for the repurchase of up to 500,000 shares of the Companys outstanding
common stock. No shares were repurchased during the three-month period ended March 27,
2004. During the three-month period ended March 29, 2003, the Company repurchased 22,200
shares in the open market under this authorization at an aggregate cost of $0.2 million.
As of March 27, 2004, the Company has repurchased 151,900 shares under this authorization.
All treasury stock acquired by the Company has been cancelled and returned to the status
of authorized but unissued shares.

10

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# Item 2.   Managements Discussion and Analysis of Results of Operations and Financial Condition

# Results of Operations

# Three Months Ended March
27, 2004 Compared to Three Months Ended March 29, 2003

# Net Sales

Net
sales for the three months ended March 27, 2004 (2004 first quarter) were
$84.7 million compared to $58.5 million in the three months ended March 29, 2003 (2003
first quarter), an increase of $26.2 million, or 45%.

Construction
equipment segment net sales were $54.4 million in the 2004 first quarter compared to
$35.8 million in the 2003 first quarter, an increase of $18.6 million, or 52%. The
Company introduced a number of new products at its national sales meeting in early
January including two new series of Gehl skid loaders. Shipments of skid loaders in the
2004 first quarter were up strongly from the 2003 first quarter due to demand for these
new models, as well as increased demand for Mustang brand skid loaders. Demand for
compact track loaders, a product introduced in mid-2002, continued to grow and resulted
in 2004 first quarter shipments which were up significantly from the 2003 first quarter.
Telescopic handler shipments in the 2004 first quarter increased over 50% from the 2003
first quarter as larger rental customers reemerged as buyers. The Companys European
subsidiary, Gehl Europe, also posted strong sales during the 2004 first quarter.

Agricultural
equipment segment net sales were $30.3 million in the 2004 first quarter, compared to
$22.7 million in the 2003 first quarter, an increase of $7.5 million, or 33%. Milk prices
in the 2004 first quarter averaged nearly $12.00 per hundred weight, compared to
approximately $9.75 per hundred weight in the 2003 first quarter. Shipments of skid
loaders during the 2004 first quarter were up strongly as improved economic conditions
contributed to a healthy demand for the new models of Gehl brand skid loaders introduced
in January 2004. Demand for compact track loaders was strong and resulted in 2004 first
quarter shipments which were up significantly from the 2003 first quarter. In addition,
2004 first quarter shipments of agricultural implements increased over 10% from the 2003
first quarter.

Of
the Companys total net sales reported for the 2004 first quarter, $14.9 million
were made outside of the United States compared with $10.5 million in the 2003 third
quarter. The increase in export sales was primarily due to increased sales in Canada and
Europe.

# Gross Profit

Gross
profit was $17.4 million in the 2004 first quarter compared to $12.3 million in the 2003
first quarter, an increase of $5.1 million, or 42%. Gross profit as a percent of net
sales (gross margin) was 20.5% for the 2004 first quarter compared to 21.0% for the 2003
first quarter.

Gross
margin for the construction equipment segment was 22.6% in the 2004 first quarter
compared with 22.8% for the 2003 first quarter. Gross margin for the agricultural
equipment segment was 16.9% in the 2004 first quarter compared to 18.0% in the 2003 first
quarter. The 2004 first quarter gross margin for both segments was adversely impacted by
rising costs of steel and other component parts, increased costs of finished goods
sourced from overseas due to the weak U.S. dollar versus the Euro and the yen,
manufacturing inefficiencies associated with start-up production of the new Gehl skid
loader models and the mix of products shipped during the 2004 first quarter compared to
the 2003 first quarter.

11

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# Selling, General and
Administrative Expenses

Selling,
general and administrative expenses were $12.8 million, or 15.1% of net sales, in the 2004
first quarter compared to $11.0 million, or 18.9% of net sales, in the 2003 first quarter.
Selling, general and administrative expenses as a percentage of net sales improved as the
growth in net sales exceeded expense increases.

# Income from Operations

Income
from operations in the 2004 first quarter was $4.6 million compared to $1.1 million in the
2003 first quarter.

# Interest Expense

Interest
expense was $0.6 million in the 2004 first quarter compared to $0.9 million in the 2003
first quarter, a decrease of $0.3 million, or 35%. The decrease in the Companys
average outstanding debt balance, due to reduced working capital requirements, primarily
contributed to the decrease in the 2004 first quarter interest expense.

# Other (Expense) Income,
Net

The
Company incurred other expense, net of $0.1 million in the 2004 first quarter compared to
other income, net of $0.1 million in the 2003 first quarter. The favorable impact of
reduced costs of selling retail finance contracts, due to the overall lower interest rate
environment, was more than offset by unfavorable impacts of foreign exchange rates in the
2004 first quarter compared to the 2003 first quarter.

# Net Income

Net
income was $2.9 million in the 2004 first quarter compared to $0.5 million in the 2003
first quarter.

# Financial Condition

The
Companys working capital was $101.4 million at March 27, 2004, as compared to $83.3
million at December 31, 2003, and $108.7 million at March 29, 2003. The decrease since
March 29, 2003 was primarily due to increases in accounts payable ($9.3 million) and
pension payments expected to be paid within 12 months of the respective balance sheet
dates ($5.8 million), offset by increased accounts receivable ($9.1 million). The increase
in accounts payable was primarily due to the timing of scheduled payments resulting from a
change in the mix of vendors from the year-ago period. The increase in accounts receivable
was due to strong net sales in the 2004 first quarter, which were primarily driven by the
introduction of two new series of Gehl skid loader and strong demand for telescopic
handlers and track loaders.

The
increase in working capital from December 31, 2003 was primarily the result of increases
in accounts receivable ($30.4 million), offset by increases in accounts payable ($11.3
million). The increase in accounts receivable was due to strong net sales in the 2004
first quarter, which were primarily driven by the introduction of two new series of Gehl
skid loader and strong demand for telescopic handlers and track loaders as well as normal
seasonal sales patterns. The increase in accounts payable was due to seasonal increases as
well as the timing of scheduled payments resulting from a change in the mix of vendors
from December 31, 2003.

12

---

Capital
expenditures for property, plant and equipment during the 2004 first quarter were $0.8
million. During 2004, the Company plans to make an aggregate of up to $5.0 million in
capital expenditures. The Company believes that its present manufacturing facilities will
be sufficient to provide adequate capacity for its operations through 2004.

Effective
March 23, 2004, the Company amended its $75 million line of credit facility
(Facility). The amendment extended the expiration date of the Facility to
December 31, 2007 and increased the line of credit from $75 million to $90 million each
year for the period March 1 to July 15. All other terms and provisions are consistent with
the Facility as in effect prior to the March 2004 amendment. As of March 27, 2004, the
weighted-average interest rate paid by the Company on outstanding borrowings under its
Facility was 3.8%. The Company had available unused borrowing capacity of $46.5 million,
$46.8 million and $19.7 million under the Facility at March 27, 2004, December 31, 2003,
and March 29, 2003, respectively. At March 27, 2004, December 31, 2003, and March 29,
2003, the Companys outstanding borrowings under the Facility were $42.1 million,
$26.3 million and $54.0 million, respectively. The changes in borrowings from March 29,
2003 and December 31, 2003 to March 27, 2004 were primarily due to changes in working
capital requirements. The Company believes it has adequate capital resources and borrowing
capacity to meet its projected capital requirements for the foreseeable future.
Requirements for working capital, capital expenditures, pension fund contributions and
debt maturities in fiscal 2004 will continue to be funded by operations and borrowings
under the Facility.

The
sale of finance contracts is an important component of the Companys overall
liquidity. The Company has arrangements with several financial institutions and financial
service companies to sell, with recourse, its finance contracts receivable. The Company
continues to service substantially all contracts whether or not sold. At March 27, 2004,
the Company serviced $184.6 million of such contracts, of which $176.2 million were owned
by other parties. The Company believes that it will be able to arrange sufficient capacity
to sell its finance contracts for the foreseeable future.

At
March 27, 2004, shareholders equity had increased $4.9 million to $101.5 million
from $96.6 million at March 29, 2003. This increase primarily reflected the impact of the
net income earned from March 29, 2003 to March 27, 2004 and currency translation
adjustments, offset by the minimum pension liability adjustment recorded in 2003.

In
September 2001, the Companys Board of Directors authorized a stock repurchase plan
providing for the repurchase of up to 500,000 shares of the Companys outstanding
common stock. No shares were repurchased under this authorization during the three-month
period ended March 27, 2004. During the three-month period ended March 29, 2003, the
Company repurchased 22,200 shares in the open market under this authorization at an
aggregate cost of $0.2 million. As of March 27, 2004, the Company has repurchased 151,900
shares under this authorization. All treasury stock acquired by the Company has been
cancelled and returned to the status of authorized but unissued shares.

Other
than the change in the outstanding borrowings under the Facility as described above, there
have been no material changes to the annual maturities of debt obligations nor to the
future minimum non-cancelable operating lease payments as disclosed in Managements
Discussion and Analysis of Results of Operations and Financial Condition and Notes 7 and
14, respectively, of Notes to Consolidated Financial Statements in the Companys
Annual Report on Form 10-K for the year ended December 31, 2003 as filed with the
Securities and Exchange Commission.

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# Accounting Pronouncements

In
December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003
(the Modernization Act) introduced a prescription drug benefit under Medicare,
as well as a federal subsidy to sponsors of retiree health care benefit plans. In January
2004, the Financial Accounting Standards Board (FASB) issued FASB Staff
Position (FSP) No. FAS 106-1, Accounting and Disclosure Requirements
Related to the Medicare Prescription Drug, Improvement and Modernization Act of
2003. This FSP permits a sponsor of a postretirement health care plan that provides
a prescription drug benefit to make a one-time election to defer accounting for the
effects of the Modernization Act if there is insufficient data, time or guidance available
to ensure appropriate accounting. As permitted by this FSP, the Company has elected to
defer the accounting for the effects of the Modernization Act. As a result, any measures
of the Companys accumulated postemployment obligation or net periodic postemployment
benefit cost in the condensed consolidated financial statements or accompanying notes do
not reflect the effects of the Modernization Act on the Companys postemployment
plan. Authoritative guidance on the accounting for the federal subsidy is pending. When
guidance is issued, the Company may be required to adjust previously reported information.

In
January 2003, the FASB issued FASB Interpretation No. 46, Consolidation of Variable
Interest Entities, an interpretation of ARB No. 51 (FIN 46). FIN 46
clarifies the application of Accounting Research Bulletin No. 51, Consolidated
Financial Statements to certain entities in which, among others, equity investors do
not have the characteristics of a controlling financial interest or do not have sufficient
equity at risk for the entity to finance its activities without additional subordinated
financial support from other parties. The consolidation provisions of FIN 46, as revised,
were effective immediately for interests created after January 31, 2003 and were effective
on March 31, 2004 for interests created before February 1, 2003. As of March 27, 2004, the
Company did not own an interest in any variable interest entities.

# Critical Accounting
Policies and Estimates

The
preparation of the Companys condensed consolidated financial statements requires the
Company to make estimates and judgments that affect the reported amounts of assets,
liabilities, net sales and expenses. The Company bases its estimates on historical
experience and on various other assumptions that are believed to be reasonable under the
circumstances, the results of which form the basis for making judgments about the carrying
values of assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates under different assumptions or conditions and
materially impact the carrying value of the assets and liabilities. The Company believes
the following accounting policies are critical to the Companys business operations
and the understanding of the Companys results of operations and financial condition.

Allowance
for Doubtful Accounts

The
Companys accounts receivable are reduced by an allowance for amounts that may be
uncollectible in the future. In circumstances where the Company is aware of a specific
customers inability to meet its financial obligations, a specific reserve for bad
debts is recorded against the accounts receivable balance to reduce the amount due to the
net amount reasonably expected to be collected. Additionally, a general percentage of past
due receivables is reserved, based on the Companys past experience of
collectibility. If circumstances change (i.e., higher than expected defaults or an
unexpected material adverse change in a major customers ability to meet its
financial obligations), estimates of the recoverability of amounts due could be reduced by
a material amount.

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Inventories

Inventories
are valued at the lower of cost or market value. Cost is determined using the last-in,
first-out (LIFO) method for the majority of the Companys inventories. In valuing
inventory, management is required to make assumptions regarding the level of reserves
required to value potentially obsolete or slow moving items to the lower of cost or
market value. Inventory reserves are established taking into account inventory age and
frequency of use or sale. While calculations are made involving these factors,
significant management judgment regarding expectations for future events is involved.
Future events that could significantly influence managements judgment and related
estimates include general economic conditions in markets where the Companys
products are sold, as well as new products and design changes introduced by the Company.

Accrued
Warranty

The
Company establishes reserves related to the warranties provided on its products. Specific
reserves are maintained for programs related to known machine safety and reliability
issues. When establishing specific reserves, estimates are made regarding the size of the
population, the type of program, costs to be incurred and estimated participation.
Additionally, general reserves are maintained based on the historical percentage
relationships of warranty costs to machine sales and applied to current equipment sales.
If these estimates and related assumptions change, reserve levels may require adjustment.

Accrued
Product Liability

The
Company records a general reserve for potential product liability claims based on the
Companys prior claim experience and specific reserves for known product liability
claims. Specific reserves for known claims are valued based upon the Companys prior
claims experience, including consideration of the jurisdiction, circumstances of the
accident, type of loss or injury, identity of plaintiff, other potential responsible
parties, analysis of outside counsel, and analysis of internal product liability counsel.
Actual product liability costs could be different due to a number of variables, including
decisions of juries or judges.

Goodwill
Impairment

In
connection with SFAS No. 142, Goodwill and Other Intangible Assets, the
Company is required to perform goodwill impairment reviews, at least annually, using a
fair-value-based approach. The Company performs its annual impairment review as of
December 31. As part of the annual impairment review, an estimate of the fair value of
the Companys construction equipment segment (the entire carrying amount of goodwill
is allocated to the construction segment), primarily by using a discounted cash flow
analysis, is performed. Significant assumptions used in this analysis include: expected
future revenue growth rates, operating profit margins, working capital levels and a
weighted average cost of capital. Changes in assumptions could significantly impact the
estimate of the fair value of the construction equipment segment, which could result in a
goodwill impairment charge and could have a significant impact on the results of the
construction equipment segment and the consolidated financial statements.

15

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Pension
and Postemployment Benefits

Pension
and postemployment benefit costs and obligations are dependent on assumptions used in
calculation of these amounts. These assumptions, used by actuaries, include discount
rates, expected return on plan assets for funded plans, rate of salary increases, health
care cost trend rates, mortality rates and other factors. In accordance with accounting
principles generally accepted in the United States, actual results that differ from the
actuarial assumptions are accumulated and amortized to future periods and therefore
affect recognized expense and recorded obligations in future periods. While the Company
believes that the assumptions used are appropriate, differences in actual experience or
changes in assumptions may materially effect its financial position or results of
operations.

# Outlook

First
quarter sales were stronger than the Company had originally forecasted and order backlogs
are improving, which indicates the Companys markets continue to show signs of
strength. Offsetting this positive trend, however, is the uncertainty over the magnitude
and duration of higher steel prices. If the situation continues, these increased costs may
offset the benefits of higher sales. Therefore, the Company, while cautiously optimistic
relative to sales performance exceeding original expectations, reconfirms its original
earnings forecast for 2004 at $1.20 to $1.40 cents per diluted share.

# Forward-Looking
Statements

Certain
statements included in this filing are forward-looking statements intended to
qualify for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. All statements other than statements of historical fact,
including the statements in the section entitled Outlook, are forward-looking
statements. When used in this filing, words such as the Company believes,
anticipates, expects, estimates or
projects or words of similar meaning are generally intended to identify
forward-looking statements. These forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties, assumptions and other
factors, some of which are beyond the Companys control, that could cause actual
results to differ materially from those anticipated as of the date of this filing. Factors
that could cause such a variance include, but are not limited to, any interruption in the
expected general economic recovery, unanticipated changes in capital market conditions,
the Companys ability to implement successfully its strategic initiatives, market
acceptance of newly introduced products, unexpected issues related to the pricing and
availability of raw materials (including steel) and component parts, the ability of the
Company to increase its prices to reflect higher prices for raw materials and component
parts, the cyclical nature of the Companys business, the Companys and its
customers access to credit, competitive pricing, product initiatives and other
actions taken by competitors, disruptions in production capacity, excess inventory levels,
the effect of changes in laws and regulations (including government subsidies and
international trade regulations), technological difficulties, changes in currency exchange
rates or interest rates, unanticipated difficulties or charges arising out of the proposed
sale of the Companys Owatonna, Minnesota manufacturing facility, the Companys
ability to secure sources of liquidity necessary to fund its operations, changes in
environmental laws, the impact of any acquisition effected by the Company, and employee
and labor relations. Shareholders, potential investors, and other readers are urged to
consider these factors in evaluating the forward-looking statements and are cautioned not
to place undue reliance on such forward-looking statements. The forward-looking statements
included in this filing are only made as of the date of this filing, and the Company
undertakes no obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances. In addition, the Companys expectations for
fiscal year 2004 are based in part on certain assumptions made by the Company, including
those relating to commodities prices, which are strongly affected by weather and other
factors and can fluctuate significantly, housing starts and other construction activities,
which are sensitive to, among other things, interest rates and government spending, and
the performance of the U.S. economy generally. The accuracy of these or other assumptions
could have a material effect on the Companys ability to achieve its expectations.

16

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# Item 3.   Quantitative and
Qualitative Disclosures about Market Risk

There
are no material changes to the information provided in response to this item as set forth
in the Companys Annual Report on Form 10-K for the year ended December 31, 2003 as
filed with the Securities and Exchange Commission.

# Item 4.   Controls and
Procedures

The
Companys management, with the participation of the Companys principal
executive officer and principal financial officer, has evaluated the Companys
disclosure controls and procedures as of March 27, 2004. Based upon that evaluation, the
Companys principal executive officer and principal financial officer have concluded
that the Companys disclosure controls and procedures were effective as of March 27,
2004. There was no change in the Companys internal control over financial reporting
that occurred during the three months ended March 27, 2004, that has materially affected,
or is reasonably likely to materially affect, the Companys internal control over
financial reporting.

17

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# PART II  OTHER
INFORMATION

Item 2.   Changes in
Securities, Use of Proceeds and Issuer Purchases of Equity Securities

In
September 2001, the Companys Board of Directors authorized a stock repurchase plan
providing for the repurchase of up to 500,000 shares of the Companys outstanding
common stock in open market or privately negotiated transactions. The plan does not have
an expiration date. No shares were repurchased under the plan during the three-month
period ended March 27, 2004. As of March 27, 2004, the Company had authority to repurchase
348,100 shares under the plan.

# Item 6.  Exhibits and
Reports on Form 8-K

| | (a) | Exhibits
| | --- | --------

| | ExhibitNo. | Document Description
| | ---------- | --------------------

| | 4.1 | Thirteenth
Amendment to the Amended and Restated Loan and Security Agreement by and among Gehl
Company and its subsidiaries and GE Commercial Distribution Finance Corporation (formerly
Deutsche Financial Services Corporation) and GE Commercial Distribution Finance Canada
Inc. (formerly Deutsche Financial Services Canada Corporation), dated as of March 23,
2004.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2 | Fourteenth
Amendment to the Amended and Restated Loan and Security Agreement by and among Gehl
Company and its subsidiaries and GE Commercial Distribution Finance Corporation (formerly
Deutsche Financial Services Corporation) and GE Commercial Distribution Finance Canada
Inc. (formerly Deutsche Financial Services Canada Corporation), dated as of March 23,
2004.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.1 | Gehl
Company 2004 Incentive Compensation Plan.
| | ---- | ----------------------------------------------

| | 31.1 | Certification
of the Chief Executive Officer pursuant to
                                               section 302 of the Sarbanes-Oxley Act of
2002.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | 31.2 | Certification
of the Chief Financial Officer pursuant to
                                               section 302 of the Sarbanes-Oxley Act of
2002.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32.1 | Certification
of Periodic Financial Report by the Chief Executive Officer and Chief Financial Officer
pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (b) | Reports
on Form 8-K
| | --- | -------------------

| | The
Company furnished a Current Report on Form 8-K on February 20, 2004 reporting under Items
7 and 12 the Companys financial results for the three- and twelve-months ended
December 31, 2003.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.

|                    | GEHL COMPANY
|------------------- | ------------
|Date:  May 10, 2004 | By:         
|                    |             
|Date:  May 10, 2004 | By:         
|                    |             

19

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# GEHL COMPANY

# INDEX TO EXHIBITS

| | ExhibitNo. | Document Description
| | ---------- | --------------------

| | 4.1 | Thirteenth Amendment to the Amended and Restated Loan and
                                               Security Agreement by and among Gehl Company and its
                                               subsidiaries and GE Commercial Distribution Finance
                                               Corporation (formerly Deutsche Financial Services
                                               Corporation) and GE Commercial Distribution Finance
                                               Canada Inc. (formerly Deutsche Financial Services Canada
                                               Corporation), dated as of March 23, 2004.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4.2 | Fourteenth Amendment to the Amended and Restated Loan and
                                               Security Agreement by and among Gehl Company and its
                                               subsidiaries and GE Commercial Distribution Finance
                                               Corporation (formerly Deutsche Financial Services
                                               Corporation) and GE Commercial Distribution Finance
                                               Canada Inc. (formerly Deutsche Financial Services Canada
                                               Corporation), dated as of March 23, 2004.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.1 | Gehl Company 2004 Incentive Compensation Plan.
| | ---- | ----------------------------------------------

| | 31.1 | Certification of the Chief Executive Officer pursuant to
                                               section 302 of the Sarbanes-Oxley Act of 2002.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | 31.2 | Certification of the Chief Financial Officer pursuant to
                                               section 302 of the Sarbanes-Oxley Act of 2002.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32.1 | Certification of Periodic Financial Report by the Chief
                                               Executive Officer and Chief Financial Officer pursuant to
                                               section 906 of the Sarbanes-Oxley Act of 2002.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

20