# FORM 10-Q

# SECURITIES AND
EXCHANGE COMMISSIONWashington, D.C. 20549

# [X] QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

# For the Quarterly Period Ended
October 1, 2005

# 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 | (I.R.S. Employer Identification No.)
|or organization)                              |                                     

|                                        |           
|--------------------------------------- | ----------
|143 Water Street, West Bend, WI         | 53095     
|(Address of principal executive office) | (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 X    No

Indicate by check mark whether the
registrant is a shell company (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 October 1, 2005
|---------------------------- | ------------------------------
|Common Stock, $.10 Par Value | 12,001,523                    

-1-

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# Gehl Company

# FORM 10-Q

# October 1, 2005

# Report Index

|                                |                                                                     |         
|------------------------------- | ------------------------------------------------------------------- | --------
|                                |                                                                     | Page No.
|PART I. - Financial Information
|Item 1.                         | Financial Statements                                               
|                                | Condensed Consolidated Statements of Income for the Three-and Nine-
|                                | month Periods Ended October 1, 2005 and September 25, 2004          | 3       
|                                | Condensed Consolidated Balance Sheets at October 1, 2005,           |         
|                                | December 31, 2004, and September 25, 2004                           | 4       
|                                | Condensed Consolidated Statements of Cash Flows for the Nine-month  |         
|                                | Periods Ended October 1, 2005 and September 25, 2004                | 5       
|                                | Notes to Condensed Consolidated Financial Statements                | 6       
|Item 2.                         | Management's Discussion and Analysis of Results of                  |         
|                                | Operations and Financial Condition                                  | 15      
|Item 3.                         | Quantitative and Qualitative Disclosures about Market Risk          | 25      
|Item 4.                         | Controls and Procedures                                             | 25      
|PART II. - Other Information    |                                                                     |         
|Item 2.                         | Unregistered Sales of Equity Securities and Use of Proceeds         | 26      
|Item 6.                         | Exhibits                                                            | 26      
|Signatures                      |                                                                     | 26      

-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)

|                           
|---------------------------
|September 25,              
|2004                       
|Net sales                  
|Cost of goods sold         
|                           
|Gross profit               
|Selling, general and       
|administrative 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-

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

|                                                  | October 1,
|------------------------------------------------- | ----------
|2004                                              | 2004      
|Assets                                            |           
|Cash                                              |           
|Accounts receivable - net                         |           
|Finance contracts receivable - net                |           
|Inventories                                       |           
|Deferred income tax assets                        |           
|Prepaid expenses and other current assets         |           
|                                                  |           
|Total current assets                              |           
|                                                  |           
|Property, plant and equipment - net               |           
|Finance contracts receivable - net, non-current   |           
|Goodwill                                          |           
|Other assets                                      |           
|                                                  |           
|Total assets                                      |           
|                                                  |           
|Liabilities and Shareholders' Equity              |           
|Current portion of long-term debt obligations     |           
|Short-term debt obligations                       |           
|Accounts payable                                  |           
|Accrued and other current liabilities             |           
|                                                  |           
|Total current liabilities                         |           
|                                                  |           
|Long-term debt obligations                        |           
|Deferred income tax liabilities                   |           
|Other long-term liabilities                       |           
|                                                  |           
|Total long-term liabilities                       |           
|                                                  |           
|Common stock, $.10 par value, 25,000,000 shares   |           
|authorized, 12,001,523, 9,931,823 and 9,780,003   |           
|shares outstanding, respectively                  |           
|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                          |           
|Retained earnings                                 |           
|Accumulated other comprehensive loss              |           
|                                                  |           
|Total shareholders' equity                        |           
|                                                  |           
|Total liabilities and shareholders' equity        |           
|                                                  |           

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

-4-

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

|                                                         
|---------------------------------------------------------
|September 25,                                            
|2004                                                     
|Cash Flows from Operating Activities                     
|Net income                                               
|Adjustments to reconcile net income to net cash          
|used for operating activities:                           
|Depreciation and amortization                            
|Compensation expense for long-term incentive stock grants
|Gain on sale of property, plant and equipment            
|Deferred income taxes                                    
|Cost of sales of finance contracts                       
|Proceeds from sales of finance contracts                 
|Increase in finance contracts receivable                 
|(Decrease) increase in cash due to changes in:           
|Accounts Receivable - net                                
|Inventories                                              
|Accounts Payable                                         
|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 (repayments of) revolving credit loans     
|Proceeds from short-term borrowings                      
|Repayment of short-term borrowings                       
|Repayments of other borrowings - net                     
|Proceeds from exercise of stock options                  
|Proceeds from the issuance of common stock               
|                                                         
|Net cash provided by financing activities                
|                                                         
|Net decrease in cash                                     
|Cash, beginning of period                                
|                                                         
|Cash, end of period                                      
|                                                         
|Supplemental disclosure of cash flow information:        
|Cash paid for the following:                             
|Interest                                                 
|Income taxes                                             

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

-5-

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Gehl Company and
Subsidiaries Notes to Condensed Consolidated Financial Statements October 1, 2005
(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- and nine-month periods
ended October 1, 2005 and September 25, 2004 includes all adjustments, consisting only of
normal recurring accruals, necessary for a fair statement 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- and nine-month period ended October 1,
2005 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, 2004 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
Accounting Principles Board 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.

-6-

---

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

|                             
|-----------------------------
|September 25,                
|2004                         
|Net income, as reported      
|Less: stock-based            
|compensation expense         
|determined based on the      
|fair value method, net of tax
|                             
|Pro forma net income         
|                             
|Diluted net income per share:
|As reported                  
|Pro forma                    
|Basic net income per share:  
|As reported                  
|Pro forma                    

# 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  Finance
Contracts Receivable Financing

In
February 2005, the Company entered into an asset securitization program
(program) with a financial institution (the Purchaser) whereby the
Company can sell, through a revolving securitization facility, up to $150 million of
retail installment sale contracts (retail installment sale contracts or
finance contracts receivable). The Company sells portfolios of its finance
contracts receivable to a wholly owned, bankruptcy-remote special purpose subsidiary
(SPE) which, in turn, sells each such portfolio to a wholly owned
bankruptcy-remote qualified special purpose subsidiary (QSPE) of the SPE. The
QSPE, in turn, sells a participating interest in each such portfolio of finance contracts
receivable to the Purchaser. The Purchaser receives a security interest in each such
portfolio of finance contracts receivable. The Company has retained collection and
administrative responsibilities for each such portfolio of finance contracts receivable.
The Purchaser has no recourse against the Company for uncollectible finance contracts
receivable, if any; however, the Companys retained interest in the portfolio of
finance contracts receivable is subordinate to the Purchasers interest. The
Companys retained interest is recorded at fair value, which is calculated based on
the present value of estimated future cash flows and reflects prepayment and loss
assumptions, which are based on historical results. At October 1, 2005, the fair value of
the retained interest was calculated using an interpolated risk-free rate of return of
4.17% based on U.S. Treasury rates, an 18.5 month weighted-average prepayable portfolio
life and a 0.5% annual loss rate. Changes in any of these assumptions could affect the
calculated value of the retained interest. The retained interest recorded at October 1,
2005 was $16.7 million and is included in other assets in the accompanying Condensed
Consolidated Balance Sheet. In addition to the retained interest, the Company recorded a
$10.1 million current asset related to contracts sold into the facility without an advance
of proceeds to the Company as of October 1, 2005. The delay in the advance of proceeds was
due to a temporary reduction in the facility advance rate to 82.0% during September 2005
as a result of the timing of the recovery of certain past due balances and certain
portfolio concentration adjustments. Subsequent to October 1, 2005, the advance increased
to 88.2%. The Company anticipates the advance rate increasing to 90.5% (the maximum
advance rate under the program) during the 2005 fourth quarter.

-7-

---

The
securitization program has a final maturity in February 2008, subject to annual renewal by
the Purchaser. The total credit capacity under the program is $150 million, with finance
contracts receivable sold and being serviced by the Company totaling $101.9 million at
October 1, 2005. Of the $101.9 million in sold contracts receivable, $1.1 million were
greater than 60 days past due at October 1, 2005. Credit losses on contracts sold under
the program were $0.8 million as of October 1, 2005.

During
the nine-month period ended October 1, 2005, the Company received proceeds from the sale
of finance contracts receivable of $87.2 million and recorded a loss on sale of $1.1
million. The loss on sale was partially offset by a $0.4 million realized gain on the
termination of interest rate swap contracts that were put in place to hedge gains / losses
on the sale of finance contracts receivable (see note 13). The Company received $0.3
million in service fee income during the nine-month period ended October 1, 2005. The
Company received $3.8 million in cash flows related to the retained interest during the
nine-month period ended October 1, 2005.

The
Company incurred one-time transaction costs of $1.5 million, which are included in other
expense in the accompanying Condensed Consolidated Statement of Income, related to the
implementation of the asset securitization program.

During
the nine-month period ended October 1, 2005, the Company sold $53.0 million of retail
finance contracts to other financial institutions on a limited recourse basis. The Company
incurred a $0.9 million loss on the sale of these retail finance contracts.

These
sales were accounted for as a sale in accordance with SFAS No. 140 Accounting for
Transfers and Servicing of Financial Assets and Extinguishment of Liabilitiesa
Replacement of FASB Statement No. 125. Sales of finance contracts receivable are
reflected as a reduction of finance contracts receivable in the accompanying Condensed
Consolidated Balance Sheet and the proceeds received are included in cash flows from
operating activities in the accompanying Condensed Consolidated Statement of Cash Flows.

-8-

---

# Note 5  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):

|                            | October 1, 2005
|--------------------------- | ---------------
|Raw materials and supplies  |                
|Work-in-process             |                
|Finished machines and parts |                
|                            |                
|Total current cost value    |                
|Adjustment to LIFO basis    |                
|                            |                
|                            |                
|                            |                

# Note 6  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. The Company records warranty expense as a component of selling,
general and administrative expense. While the Companys warranty costs have
historically been within its calculated estimates, it is possible that future warranty
costs could differ from those estimates. The changes in the carrying amount of the
Companys total product warranty liability for the nine-month periods ended October
1, 2005 and September 25, 2004 were as follows (in thousands):

|                                                       
|-------------------------------------------------------
|Beginning balance                                      
|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
|                                                       
|Ending balance                                         
|                                                       

During
the three-month period ended July 2, 2005, the Company recorded a $2.3 million warranty
reserve associated with purchased components that the Company incorporated into one of its
product lines. The Company anticipates recovering a substantial portion of its costs
associated with the warranty charge from its suppliers. In accordance with applicable
accounting standards, the Company expects to record recoveries from its suppliers in
subsequent periods.

-9-

---

# Note 7  Debt
Obligations

On
June 3, 2005, the Company entered into a $125 million revolving credit facility (the
Facility) with a syndicate of commercial bank lenders. The credit commitment
under the facility is for a five-year period expiring June 3, 2010. At any time during the
term of the Facility, the Company has the option to request an increase in the credit
commitment under the Facility to $175 million from the current syndicate of commercial
bank lenders or any other commercial bank lender(s) selected by the Company. Borrowings
under the Facility are secured by the Companys accounts receivable, inventory and
the capital stock of certain wholly-owned subsidiaries. The Company may borrow up to $25
million under the Facility in a currency other than the U.S. Dollar. The Company may elect
to pay interest on U.S. Dollar borrowings under the Facility at a rate of either (1) the
London Interbank Offered Rate (LIBOR) plus 0.75% to 1.50% or (2) a base rate
defined as the prime commercial rate less up to 1.0%. The Companys actual
borrowing costs for LIBOR or base rate borrowings is determined by reference to a pricing
grid based on the Companys ratio of funded debt to total capitalization. Interest on
amounts borrowed under the Facility in currencies other than the U.S. Dollar will be
priced at a rate equal to LIBOR plus 0.75% to 1.50%. As of October 1, 2005, the weighted
average interest rate on Company borrowings outstanding under the Facility was 4.73%.

The
Facility requires the Company to maintain compliance with certain financial covenants
related to total capitalization, interest expense coverage, tangible net worth, capital
expenditures and operating lease spending. The Company was in compliance with all
covenants as of October 1, 2005.

Borrowings
under the Facility were $62.6 million at October 1, 2005. Available unused borrowings
under the Facility were $62.4 million at October 1, 2005.

# Note 8  Employee
Retirement Plans

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

|                                  
|----------------------------------
|September 25,                     
|2004                              
|Service cost                      
|Interest cost                     
|Expected return on plan assets    
|Amortization of prior service cost
|Amortization of net loss          
|                                  
|Net periodic benefit cost         
|                                  

The
Company anticipates making $1.2 million of contributions to the pension plans during 2005,
all of which have been made during the nine-month period ended October 1, 2005.

-10-

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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):

|                                  
|----------------------------------
|September 25,                     
|2004                              
|Service cost                      
|Interest cost                     
|Amortization of prior service cost
|Amortization of net loss          
|                                  
|Net periodic benefit cost         
|                                  

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):

|                                     
|-------------------------------------
|September 25,                        
|2004                                 
|Service cost                         
|Interest cost                        
|Amortization of transition obligation
|Amortization of net loss             
|                                     
|Net periodic benefit cost            
|                                     

# Note 9  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 earnings per share follows (in
thousands):

|                  
|------------------
|September 25, 2004
|Basic shares      
|Effect of options 
|                  
|Diluted shares    
|                  

|                  
|------------------
|September 25, 2004
|Basic shares      
|Effect of options 
|                  
|Diluted shares    
|                  

-11-

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The
components of comprehensive income (loss) are as follows (in thousands):

|                                       
|---------------------------------------
|September 25, 2004                     
|Net income                             
|Foreign currency translation           
|adjustments                            
|Unrealized gains (losses), net of taxes
|                                       
|Other comprehensive loss               
|                                       
|Comprehensive income                   
|                                       

# Note 10  Business
Segments

The
Company has two segments, construction equipment and agricultural equipment, as the
long-term financial performance of these segments is affected by separate economic
conditions and cycles. Segment net sales and income from operations tend to be aligned
with the distribution networks of the Company, and correlate with the manner in which the
Company evaluates performance.

|                       
|-----------------------
|September 25,          
|2004                   
|Net Sales:             
|Construction           
|Agricultural           
|                       
|Consolidated           
|                       
|Income from Operations:
|Construction           
|Agricultural           
|                       
|Consolidated           
|                       

# Note 11  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 under this authorization were repurchased during the nine-month
period ended October 1, 2005 nor the nine-month period ended September 25, 2004. As of
October 1, 2005, the Company has repurchased an aggregate of 227,850 shares under this
authorization. All treasury stock acquired by the Company has been cancelled and returned
to the status of authorized but unissued shares.

-12-

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# Note 12 
Shareholders Equity

On
July 25, 2005, the Companys board of directors approved a three-for-two stock split,
in the form of a 50 percent stock dividend. On August 24, 2005, the Company distributed
one share of Company common stock for every two shares of common stock held by the
Companys shareholders of record as of the close of business on August 10, 2005. As a
result, all prior year share and per share data have been adjusted to reflect the split.

On
September 26, 2005, the Company completed a public offering of 2,395,000 shares of its
common stock at a price to the public of $28.12. The offering included 1,748,125 primary
shares sold by the Company and 646,875 secondary shares sold by one selling shareholder,
Neuson Finance GmbH. The Company received approximately $46 million in net proceeds from
the sale of shares by it in the offering, after deducting underwriting discounts,
commissions and expenses. The Company used the net proceeds it received from the offering
to repay debt outstanding under its credit facility.

# Note 13  Financial
Instruments

The
Company selectively uses interest rate swaps and foreign currency forward contracts to
reduce market risk associated with changes in interest rates and the value of the U.S
Dollar versus the Euro. The use of derivatives is restricted to those intended for hedging
purposes.

The
Company was party to three interest rate swap agreements (swaps) that were put
in place as hedges protecting against underlying changes in interest rates and their
impact on the gains / losses incurred upon the sale of finance contracts receivable.
Accordingly, the implied gains / losses associated with the fair values of interest rate
swaps would be offset by gains / losses on the sale of the underlying retail finance
contracts. Under the swaps, the Company received interest on a variable LIBOR for
one-month deposits and paid on a fixed rate ranging from of 3.18% to 3.41%. Although the
Company continued to own finance contracts during the term of the swaps, under the
provisions of SFAS No. 133, Accounting for Derivative Instruments and Hedging
Activities, the swaps were deemed ineffective as of April 2, 2005 as the finance
contracts that were owned by the Company at the inception of the swaps had been sold
during the three-month period ended April 2, 2005. As a result, the Company recorded $1.1
million of other income in the three-month period ended April 2, 2005. The Company
terminated the swaps during the three-month period ended July 2, 2005 and recorded $0.7
million of other expense during such period resulting in a realized net gain of $0.4
million.

The
Company has purchase commitments to pay certain suppliers in Euros. In May 2005, the
Company entered into a series of forward currency contracts (forward
contracts) to hedge a portion of the Companys exposure to changes in the value
of the U.S Dollar versus the Euro as a result of the Euro purchase commitments. A portion
of the forward contracts the Company entered into expired during the three-month period
ended October 1, 2005 resulting in a realized loss of $0.2 million. The remaining forward
contracts expire between October 31, 2005 and December 31, 2005 and have a notional amount
of 1.1 million ($1.4 million) and contract rates ranging from 1.0:$1.2721 to
1.0:$1.2755. As the remaining contracts are deemed ineffective under the provisions
of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities,
the Company recorded a current liability and an increase to cost of goods sold of $0.1
million during the nine-month period ended October 1, 2005.

-13-

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# Note 14 
Accounting Pronouncements

During
December 2004, the Financial Accounting Standards Board issued SFAS
No. 123R, Share-Based Payment (SFAS 123R), which requires companies to
measure and recognize compensation expense for all stock-based payments at fair value.
Stock-based payments include stock option grants and other transactions under Company
stock plans. The Company grants options to purchase common stock to some of its employees
and directors under various plans at prices equal to the market value of the stock on the
dates the options were granted. The Company is required to adopt SFAS 123R by the first
quarter of fiscal 2006. The Company anticipates using the modified prospective method of
adopting SFAS 123R and will record compensation expense related to stock options in its
income statement using the Black-Scholes option-pricing model upon adoption of SFAS 123R
in the first quarter of 2006.

-14-

---

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

# Results of Operations

# Three Months Ended
October 1, 2005 Compared to Three Months Ended September 25, 2004

# Net Sales

Net
sales in the three months ended October 1, 2005 (2005 third quarter) were
$112.3 million compared to $87.5 million in the three months ended September 25, 2004
(2004 third quarter), an increase of $24.8 million, or 28%.

Construction
equipment segment net sales were $81.6 million in the 2005 third quarter compared to $58.8
million in the 2004 third quarter, an increase of $22.8 million, or 39%. 2005 third
quarter construction segment net sales were favorably impacted by the continued strength
of the North American construction markets and market share gains in Europe during the
period. Demand for the Companys skid loaders remained strong as shipments increased
over 14% from the 2004 third quarter. Telescopic handler shipments in the 2005 third
quarter increased over 55% from the 2004 third quarter as demand from larger rental
customers remained robust in the 2005 third quarter. Demand for compact track loaders
resulted in sales more than doubling from the 2004 third quarter. The Companys
European subsidiary, Gehl Europe, also posted strong sales during the 2005 third quarter
as sales increased over 45% from the 2004 third quarter due to continued strength in
certain European markets along with market share gains. In addition to the shipment
increases noted above, over 3.5 percentage points of the net sales increase was due to
price increases subsequent to September 25, 2004.

Agricultural
equipment segment net sales were $30.7 million in the 2005 third quarter, compared to
$28.7 million in the 2004 third quarter, an increase of $2.1 million, or 7%. Compact
equipment net sales through this segment increased 23% from the 2004 third quarter,
primarily due to demand for skid loaders and compact track loaders as shipments of these
products increased over 4% and 50%, respectively. In addition, 2005 third quarter sales
were favorably impacted by shipments of new telescopic handler models introduced during
2005. Net sales were also favorably impacted by over 2.5 percentage points due to price
increases subsequent to September 25, 2004. These increases in net sales were partially
offset by a 33% reduction in the shipment of agricultural implement products in the
period, primarily due to a reduction in market demand for certain products. Compact
equipment and agricultural implement products accounted for 75% and 25%, respectively, of
the segment sales in the 2005 third quarter compared to 65% and 35%, respectively, in the
2004 third quarter.

Of
the Companys total net sales reported for the 2005 third quarter, $19.0 million were
made to customers residing outside of the United States compared with $13.7 million in the
2004 third quarter. The increase in export sales was primarily due to increased sales in
Europe.

# Gross Profit

Gross
profit was $21.7 million in the 2005 third quarter compared to $17.9 million for the 2004
third quarter, an increase of $3.8 million, or 21%. Gross profit as a percent of net sales
(gross margin) was 19.3% for the 2005 third quarter compared to 20.5% for the 2004 third
quarter.

-15-

---

Gross
margin for the construction equipment segment was 20.4% for the 2005 third quarter
compared to 22.9% for the 2004 third quarter. The unfavorable impact of product cost
increases (primarily increases in the cost of the material content of the product) on
gross profit have been largely offset by multiple price increases implemented by the
Company; however, the 2005 third quarter gross margin was adversely impacted by 0.8
percentage points because price increases have not exceeded cost increases to a level that
would result in no change in gross margin. In addition, a shift in the mix of product
shipped during the 2005 third quarter accounted for the remaining reduction in gross
margin from the 2004 third quarter.

Gross
margin for the agricultural equipment segment was 16.7% for the 2005 third quarter
compared to 15.6 % for the 2004 third quarter. The increase in the segment gross margin
was primarily due to an increase in the compact equipment product net sales as a
percentage of total segment net sales as these products have a gross margin similar to the
construction equipment segment gross margin. The favorable impact of the shift in sales
mix was partially offset by a reduction in the gross margin for agricultural implement
products as the Company reduced production levels in response to lower market demand for
these products resulting in unfavorable overhead absorption.

# Selling, General and
Administrative Expenses

Selling,
general and administrative expenses were $13.2 million, or 11.7% of net sales, for the
2005 third quarter compared to $12.7 million, or 14.5% of net sales, for the 2004 third
quarter. The increase in spending is primarily the result of items that vary with sales
levels. 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 for the 2005 third quarter was $8.5 million, or 7.6% of net sales,
compared to income from operations of $5.3 million, or 6.0% of net sales, for the 2004
third quarter, an increase of $3.3 million, or 62%.

# Interest Expense

Interest
expense was $1.4 million for the 2005 third quarter compared to $0.6 million for the 2004
third quarter, an increase of $0.8 million. The increase in interest expense was due to an
increase in the average outstanding debt and an increase in the Companys average
borrowing costs as the LIBOR for one-month deposits increased from the 2004 third quarter
to the 2005 third quarter. See Financial Condition section below for
discussion of changes in outstanding debt.

-16-

---

# Interest Income

Interest
income was $1.0 million for the 2005 third quarter compared to $0.5 million for the 2004
third quarter, an increase of $0.5 million. The increase in interest income is primarily
due to the interest earned on the increased average balance of finance contracts
receivable as well as accounts receivable. See Financial Condition section
below for discussion of the changes in the balance of finance contracts and the asset
securitization program.

# Net Other (Expense)
Income

The
Company recorded net other expense of $0.5 million in 2005 third quarter compared to net
other income of $0.3 million in the 2004 third quarter. The increase in net other expense
was primarily due to a $0.7 million loss on the sale of finance contracts in the 2005
third quarter. No finance contracts were sold in the 2004 third quarter as the Company was
retaining contracts for sale under its new asset securitization program in the first
quarter of 2005.

# Net Income

Net
income was $5.1 million, or 4.5% of net sales, in the 2005 third quarter compared to net
income of $3.6 million, or 4.2% of net sales, in the 2004 third quarter, an increase of
$1.4 million, or 39%.

# Nine Months Ended
October 1, 2005 Compared to Nine Months Ended September 25, 2004

# Net Sales

Net
sales in the nine months ended October 1, 2005 (2005 nine months) were $369.6
million compared to $267.7 million in the nine months ended September 25, 2004 (2004
nine months), an increase of $101.9 million, or 38%.

Construction
equipment segment net sales were $263.4 million in the 2005 nine months compared to $174.8
million in the 2004 nine months, an increase of $88.6 million, or 51%. The 2005 nine
months construction segment net sales were favorably impacted by the continued strength of
the North American construction markets and market share gains in Europe during the
period. Demand for the Companys skid loaders was strong as shipments increased over
27% from the 2004 nine months. Telescopic handler shipments in the 2005 nine months
increased over 70% from the 2004 nine months as demand from larger rental customers
remained robust in the 2005 nine months. Demand for compact track loaders and compact
excavators resulted in sales increases from the 2004 nine months of over 75% and 90%,
respectively. The Companys European subsidiary, Gehl Europe, also posted strong
sales during the 2005 nine months as sales increased over 53% from the 2004 nine months
due to continued strength in certain European markets along with market share gains. In
addition to the increased shipments noted above, approximately 6.5 percentage points of
the net sales increase was due to price increases subsequent to January 1, 2004.

-17-

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Agricultural
equipment segment net sales were $106.1 million in the 2005 nine months, compared to $92.9
million in the 2004 nine months, an increase of $13.3 million, or 14%. Compact equipment
net sales through this segment increased 28% from the 2004 nine months, primarily due to
demand for skid loaders and compact track loaders as shipments of these products increased
over 15% and 43%, respectively, from the 2004 nine months. In addition, 2005 nine month
sales were favorably impacted by shipments of new telescopic handler models introduced
during 2005. Net sales were also favorably impacted by over 5 percentage points due to
price increases subsequent to January 1, 2004. These increases in net sales were partially
offset by an 11% reduction in the shipment of agricultural implement products in the
period, primarily due to a reduction in market demand for certain products during the 2005
nine months. Compact equipment and agricultural implement products accounted for 70% and
30%, respectively, of the segment sales in the 2005 nine months compared to 62% and 38%,
respectively, in the 2004 nine months.

Of
the Companys total net sales reported for the 2005 nine months, $58.4 million were
made to customers residing outside of the United States compared with $43.3 million in the
2004 nine months. The increase in export sales was primarily due to increased sales in
Europe.

# Gross Profit

Gross
profit was $72.2 million in the 2005 nine months compared to $54.3 million for the 2004
nine months, an increase of $17.9 million, or 33%. Gross margin was 19.5% for the 2005
nine months compared to 20.3% for the 2004 nine months.

Gross
margin for the construction equipment segment was 20.6% for the 2005 nine months compared
to 22.2% for the 2004 nine months. The unfavorable impact of product cost increases
(primarily increases in the cost of the material content of the product) on gross profit
have been largely offset by multiple price increases implemented by the Company; however,
the 2005 third quarter gross margin was adversely impacted by 1.4 percentage points
because price increases have not exceeded cost increases to a level that would result in
no change in gross margin. In addition, a shift in the mix of product shipped during the
2005 nine months compared to the 2004 nine months accounted for the remainder of the
decline in gross margin.

Gross
margin for the agricultural equipment segment was 16.9% for the 2005 nine months compared
to 16.7% for the 2004 nine months. The increase in the segment gross margin was primarily
due to an increase in the compact equipment product net sales as a percentage of total
segment net sales as these products have a gross margin similar to the construction
equipment segment gross margin. The favorable impact of the shift in sales mix was
partially offset by a reduction in the gross margin for agricultural implement products as
the Company reduced production levels, including a temporary shutdown of the West Bend
facility during the 2005 second quarter, in response to lower market demand for these
products resulting in unfavorable overhead absorption.

# Selling, General and
Administrative Expenses

Selling,
general and administrative expenses were $44.0 million, or 11.9% of net sales, for the
2005 nine months compared to $37.7 million, or 14.1% of net sales, for the 2004 nine
months. Selling, general and administrative expenses in the 2005 nine months were
adversely impacted by a $2.3 million, or 0.6% of net sales, warranty charge recorded by
the Company in the 2005 second quarter associated with purchased components that the
Company incorporated into one of its product lines. The Company anticipates recovering a
substantial portion of its costs associated with the warranty charge from its suppliers.
In accordance with applicable accounting standards, the Company expects to record
recoveries from its suppliers in subsequent periods. The increase in spending, excluding
the warranty charge, is primarily the result of items that vary with sales levels.
Selling, general and administrative expenses as a percentage of net sales improved as the
growth in net sales exceeded expense increases.

-18-

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# Income from Operations

Income
from operations for the 2005 nine months was $28.2 million, or 7.6% of net sales, compared
to income from operations of $16.6 million, or 6.2% of net sales, for the 2004 nine
months, an increase of $11.6 million, or 70%. The 2005 nine months income from operations
includes the previously discussed warranty charge of $2.3 million, or 0.6% of net sales,
and the temporary West Bend facility shutdown costs of $0.6 million, or 0.2% of sales.

# Interest Expense

Interest
expense was $4.4 million for the 2005 nine months compared to $1.9 million for the 2004
nine months, an increase of $2.6 million. The increase in interest expense was due to an
increase in the average outstanding debt and an increase in borrowing costs as the LIBOR
for one-month deposits increased from the 2004 nine months to the 2005 nine months. See
Financial Condition below for discussion of changes in outstanding debt.

# Interest Income

Interest
income was $3.2 million for the 2005 nine months compared to $1.4 million for the 2004
nine months, an increase of $1.8 million. The increase in interest income is primarily due
to the interest earned on the increased average balance of finance contracts receivable as
well as accounts receivable. See Financial Condition below for discussion of
the changes in the balance of finance contracts and the asset securitization program.

# Net Other Expense

The
Company recorded net other expense of $3.3 million and $0.6 million in the 2005 nine
months and 2004 nine months, respectively. The increase in net other expense was primarily
due to $1.5 million of one time and other costs incurred with the asset securitization
program during the 2005 first quarter and a $1.4 million increase in the cost of selling
finance contracts, which included a $0.4 million realized gain on the termination of
interest rate swap contracts the Company had previously put in place to hedge the
gain/loss on sale of finance contracts (see notes 4 and 13 in Notes to Condensed
Consolidated Financial Statements). The increase in the loss on sale of finance
contracts was primarily due to the sale of $170.5 million of contracts during the 2005
nine months compared to $57.6 million during the 2004 nine months.

# Net Income

Net
income was $15.6 million in the 2005 nine months, or 4.2% of net sales, compared to net
income of $10.5 million in the 2004 nine months, or 3.9% of net sales, an increase of $5.1
million, or 49%. The 2005 nine months net income includes the previously discussed
after-tax warranty charge of $1.5 million, or 0.4% of net sales, and the temporary West
Bend facility shutdown after-tax costs of $0.4 million, or 0.1% of sales.

-19-

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# Financial Condition

The
Companys working capital was $201.6 million at October 1, 2005, as compared to
$162.8 million at December 31, 2004 and $153.7 million at September 25, 2004. The increase
since September 25, 2004 and December 31, 2004 was primarily due to increases in accounts
receivable and increases in prepaid expenses and other current assets offset, in part, by
a decrease in finance contracts receivable. The increase in accounts receivable was due to
increased shipments, which were primarily driven by strong demand for skid loaders,
telescopic handlers, compact track loaders and compact excavators. The increase in prepaid
expenses and other current assets was due to a $10.1 million current asset recorded by the
Company related to contracts sold under the securitization program without an advance of
proceeds to the Company as of October 1, 2005. The delay in the advance of proceeds was
due to a temporary reduction in the facility advance rate to 82.0% during September 2005
as a result of the timing of the recovery of certain past due balances and certain
portfolio concentration adjustments. Subsequent to October 1, 2005, the advance increased
to 88.2%. The Company anticipates the advance rate increasing to 90.5% (the maximum
advance rate under the program) during the 2005 fourth quarter. Finance contracts
receivable decreased as the Company had been holding finance contracts for a sale under an
asset securitization program from the third quarter of 2004 through February 2005. Upon
finalizing the asset securitization program in February 2005, the Company began selling
the held contracts, as well as contracts originated after the inception of the program,
through the asset securitization program, which resulted in a decrease in the balance of
finance contracts receivable from September 25, 2004 (see additional discussion below).

Capital
expenditures for property, plant and equipment during the 2005 nine months were
approximately $8.1 million. During 2005, the Company anticipates making an aggregate of up
to $13.5 million in capital expenditures. The Company has outstanding commitments for
capital expenditures at October 1, 2005 of approximately $1.3 million. The Company
believes that its present manufacturing facilities, along with the recently completed
capacity expansion at its Yankton, SD facility, will be sufficient to provide adequate
capacity for its operations for the foreseeable future.

On
June 3, 2005, the Company entered into a $125 million revolving credit facility (the
Facility) with a syndicate of commercial bank lenders. The credit commitment
under the facility is for a five-year period expiring June 3, 2010. At any time during the
term of the Facility, the Company has the option to request an increase in the credit
commitment under the Facility to $175 million from the current syndicate of commercial
bank lenders or any other commercial bank lender(s) selected by the Company. Borrowings
under the Facility are secured by the Companys accounts receivable, inventory and
the capital stock of certain wholly-owned subsidiaries. The Company may borrow up to $25
million under the Facility in a currency other than the U.S. Dollar. The Company may elect
to pay interest on U.S. Dollar borrowings under the Facility at a rate of either (1) LIBOR
plus 0.75% to 1.50% or (2) a base rate defined as the prime commercial rate less up to
1.0%. The Companys actual borrowing costs for LIBOR or base rate borrowings is
determined by reference to a pricing grid based on the Companys ratio of funded debt
to total capitalization. Interest on amounts borrowed under the Facility in currencies
other than the U.S. Dollar will be priced at a rate equal to LIBOR plus 0.75% to 1.50%. As
of October 1, 2005, the weighted average interest rate on Company borrowings outstanding
under the Facility was 4.73%.

-20-

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The
Facility requires the Company to maintain compliance with certain financial covenants
related to total capitalization, interest expense coverage, tangible net worth, capital
expenditures and operating lease spending. The Company was in compliance with all
covenants as of October 1, 2005.

Borrowings
under the Facility and the previous asset-based senior secured debt facility were $62.6
million, $69.0 million and $59.9 million at October 1, 2005, December 31, 2004 and
September 25, 2004, respectively. Available unused borrowings under the Facility and the
previous asset-based senior secured debt facility were $62.4 million, $19.3 million and
$28.6 million at October 1, 2005, December 31, 2004 and September 25, 2004, respectively.

On
September 26, 2005, the Company completed a public offering of 2,395,000 shares of its
common stock at a price to the public of $28.12. The offering included 1,748,125 primary
shares sold by the Company and 646,875 secondary shares sold by one selling shareholder,
Neuson Finance GmbH. The Company received approximately $46 million in net proceeds from
the sale of shares by it in the offering, after deducting underwriting discounts,
commissions and expenses. The Company used the net proceeds it received from the offering
to repay debt outstanding under its credit facility.

The
Company believes it has access to adequate capital resources and borrowing arrangements to
meet its projected capital requirements for the foreseeable future. Requirements for
working capital, capital expenditures, pension fund contributions and debt maturities in
fiscal 2005 will continue to be funded by operations and the Companys borrowing
arrangements.

The
sale of finance contracts is an important component of the Companys overall
liquidity. In February 2005, the Company entered into an asset securitization program with
a financial institution (the Purchaser) whereby the Company can sell, through
a revolving securitization facility, up to $150 million of retail installment sale
contracts (retail installment sale contracts or finance contracts
receivable). The Company sells portfolios of its finance contracts receivable to a
wholly owned, bankruptcy-remote special purpose subsidiary (SPE) which, in
turn, sells each such portfolio to a wholly owned bankruptcy-remote special purpose
subsidiary (QSPE) of the SPE. The QSPE, in turn, sells a participating
interest in each such portfolio of finance contracts receivable to the Purchaser. The
Purchaser receives a security interest in each such portfolio of finance contracts
receivable. The Purchaser has no recourse against the Company for uncollectible finance
contracts receivable, if any; however, the Companys retained interest in the
portfolio of finance contracts receivable is subordinate to the Purchasers interest.
At October 1, 2005, the Company had available unused capacity of $70.6 million under this
facility. It is the intention of the Company to continue to sell substantially all of its
existing as well as future finance contracts through this asset securitization program or
similar asset securitization programs. In addition to the asset securitization program,
the Company has arrangements with several financial institutions and financial service
companies to sell its finance contracts receivable, with recourse and, in certain cases,
limited recourse. The Company continues to service substantially all contracts, whether or
not sold. At October 1, 2005, the Company serviced $276.1 million of such contracts, of
which $246.1 million were owned by other parties. Of the $246.1 million sold finance
contracts owned by other parties, $167.7 million were sold through the asset
securitization program and other limited recourse arrangements.

-21-

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At
October 1, 2005, shareholders equity had increased $69.8 million to $200.3 million
from $130.5 million at September 25, 2004. This increase was primarily due to the net
income earned from September 25, 2004 to October 1, 2005, $46.1 million in proceeds from
the sale of 1,748,125 shares of common stock in September 2005 and the exercise of stock
options.

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 nine-month
period ended October 1, 2005 nor the nine-month period ended September 25, 2004. As of
October 1, 2005, the Company has repurchased an aggregate of 227,850 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 changes in the outstanding borrowings and capital commitments, as described
above, and the addition of an 84-month, $1.3 million non-cancelable equipment lease
agreement signed in August 2005, there have been no material changes to the annual
maturities of debt obligations, future minimum, non-cancelable operating lease payments
and capital commitments 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, 2004 as filed with the Securities and Exchange Commission.

# Accounting Pronouncements

During
December 2004, the Financial Accounting Standards Board issued SFAS
No. 123R, Share-Based Payment (SFAS 123R), which requires companies to
measure and recognize compensation expense for all stock-based payments at fair value.
Stock-based payments include stock option grants and other transactions under Company
stock plans. The Company grants options to purchase common stock to some of its employees
and directors under various plans at prices equal to the market value of the stock on the
dates the options were granted. The Company is required to adopt SFAS 123R by the first
quarter of fiscal 2006. The Company anticipates using the modified prospective method of
adopting SFAS 123R and will record compensation expense related to stock options in its
income statement using the Black-Scholes option-pricing model upon adoption of SFAS 123R
in the first quarter of 2006.

# 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.

-22-

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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.

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.

-23-

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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

The
Company reaffirms its net sales outlook for 2005 in the range of $465 million to $475
million and earnings per share guidance of between $1.80 and $1.87. The Companys
earnings per share guidance includes the $1.5 million, or $0.14 per share, after-tax
warranty charge recorded in the 2005 second quarter.

# 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 adverse change in
general economic conditions, 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), energy and component parts, unanticipated
difficulties in securing product from third party manufacturing sources, unanticipated
impacts from the 2005 hurricanes that impacted the Gulf Coast region, the ability of the
Company to increase its prices to reflect higher prices for raw materials and component
parts, the ability of the Company to recover from its suppliers costs related to the
one-time warranty charge for defective parts incurred in the second quarter of 2005, 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, the Companys ability to secure sources of liquidity necessary to fund its
operations, changes in environmental laws, the impact of any strategic or capital markets
transactions 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 2005 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.

-24-

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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, 2004 as
filed with the Securities and Exchange Commission other than the forward currency
contracts the Company entered into as discussed in Note 13 of Notes to Condensed
Consolidated Financial Statements.

# Item 4. Controls and
Procedures

# Disclosure Controls and
Procedures

The
Companys management, with the participation of the Companys principal
executive officer and its principal financial officer, has evaluated the Companys
disclosure controls and procedures as of October 1, 2005. Based upon that evaluation, the
Companys principal executive officer and its principal financial officer have
concluded that the Companys disclosure controls and procedures were effective as of
October 1, 2005.

# Changes in Internal
Control Over Financial Reporting

There
was no change in the Companys internal control over financial reporting (as such
term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of
1934) that occurred during the three-months ended October 1, 2005, that has materially
affected, or is reasonably likely to materially affect, the Companys internal
control over financial reporting.

-25-

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# PART II  Other
Information

# Item 2. Unregistered Sales
of Equity Securities and Use of Proceeds

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 October 1, 2005. As of October 1, 2005, the Company had authority to
repurchase 272,150 shares under the plan.

# Item 6. Exhibits

|Exhibit No. | Document Description
|----------- | --------------------

|4.1 | Shareholder
and Registration Rights Agreement, dated as of August 23, 2005, by and among Gehl
Company, Neuson Finance GmbH and Neuson Kramer Baumaschinen AG.  [Incorporated by
reference to Exhibit 4.1 to the Companys Current Report on Form 8-K filed on August
23, 2005.]
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

# 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: November 7, 2005 | By: /s/ William D. Gehl    
|                       | William D. Gehl            
|                       | Chairman of the Board      
|                       | and Chief Executive Officer
|Date: November 7, 2005 | By: /s/ Thomas M. Rettler  
|                       | Thomas M. Rettler          
|                       | Vice President and         
|                       | Chief Financial Officer    
|                       | (Principal Financial and   
|                       | Accounting Officer)        

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---

# GEHL COMPANY

# INDEX TO EXHIBITS

|Exhibit No. | Document Description
|----------- | --------------------

|4.1 | Shareholder
and Registration Rights Agreement, dated as of August 23, 2005, by and among Gehl
Company, Neuson Finance GmbH and Neuson Kramer Baumaschinen AG.  [Incorporated by
reference to Exhibit 4.1 to the Companys Current Report on Form 8-K filed on August
23, 2005.]
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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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