SECURITIES AND EXCHANGE COMMISSION
                            Washington, 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 July 3, 1999

                                       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
              or organization)                           Identification No.)

        143 Water Street, West Bend, WI                         53095
     (Address of principal executive office)                  (Zip code)


                 (414) 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 for 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 the number of shares outstanding of each of the issuer's classes of
  common stock, as of the latest practicable date.

  Class                                          Outstanding at August 1, 1999
  Common Stock, $.10 Par Value                           5,817,344

<PAGE>

                                  GEHL COMPANY

                                    FORM 10-Q

                                   July 3, 1999

                                  REPORT INDEX

                                                         Page No.
  PART I. - FINANCIAL INFORMATION:

  Item 1.  Financial Statements

       Condensed Consolidated Statements of Income for the
         Three- and Six-Month Periods Ended July 3, 1999
         and June 27, 1998  . . . . . . . . . . . .                3

       Condensed Consolidated Balance Sheets at July 3, 1999,
         December 31, 1998 and June 27, 1998  . . .                4

       Condensed Consolidated Statements of Cash Flows for the
         Six-Month Periods Ended July 3, 1999 and
         June 27, 1998  . . . . . . . . . . . . . .                5

       Notes to Condensed Consolidated Financial Statements        6

  Item 2.  Management's Discussion and Analysis of Results
             of Operations and Financial Condition                 8

  Item 3.  Quantitative and Qualitative Disclosures about
             Market Risk  . . . . . . . . . . . . .               12

  PART II. - OTHER INFORMATION:

  Item 4.  Submission of Matters to a Vote of Security Holders    12

  Item 6.  Exhibits and Reports on Form 8-K . . . .               13

  SIGNATURES  . . . . . . . . . . . . . . . . . . .               14

  <PAGE>

                         PART I - FINANCIAL INFORMATION
                          Item 1. Financial Statements
<TABLE>
                          GEHL COMPANY AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                (in thousands, except per share data; unaudited)

<CAPTION>
                            Three Months Ended      Six Months Ended
                             July 3,   June 27,     July 3,   June 27,
                              1999      1998         1999      1998
                            --------  --------     --------   --------
<S>                         <C>       <C>          <C>        <C>
NET SALES                   $ 83,848  $ 75,231     $152,811   $136,519

 Cost of goods sold           59,733    54,056      109,920     99,493
                            --------  --------     --------   --------
GROSS PROFIT                  24,115    21,175       42,891     37,026
 Selling, general and
  administrative expenses     12,487    11,676       25,026     22,549
                            --------  --------     --------   --------
INCOME FROM OPERATIONS        11,628     9,499       17,865     14,477

 Interest expense               (777)   (1,251)      (1,554)    (2,427)
 Interest income                 425       407          838        753
 Other expense, net             (777)     (578)      (1,217)      (596)
                            --------  --------     --------   --------
INCOME BEFORE INCOME TAXES    10,499     8,077       15,932     12,207

 Income tax provision          3,727     2,867        5,656      4,333
                            --------  --------     --------   --------
NET INCOME                  $  6,772  $  5,210     $ 10,276   $  7,874
                            ========  ========     ========   ========
EARNINGS PER SHARE

 Diluted                    $   1.01  $    .78     $   1.53   $   1.18

 Basic                      $   1.05  $    .81     $   1.59   $   1.24
</TABLE>
    The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
                          GEHL COMPANY AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (in thousands, except share data)
<CAPTION>
                                      July 3,     December 31,    June 27,
                                       1999          1998           1998
                                     --------     -----------    --------
ASSETS                               (Unaudited)                 (Unaudited)
 <S>                                 <C>          <C>            <C>
 Cash                                $  3,446     $     887      $  6,380
 Accounts receivable-net               79,873        70,806        85,084
 Finance contracts receivable-net      10,270         9,786        10,766
 Inventories                           28,764        32,093        26,953
 Deferred tax asset                     7,138         7,138         4,217
 Prepaid expenses and other assets      1,077         1,184         1,422
                                     --------      --------      --------
  Total Current Assets                130,568       121,894       134,822
                                     --------      --------      --------
 Property, plant and equipment-net     33,681        34,142        34,552
 Finance contracts receivable-net,
  non-current                           6,169         5,804         3,924
 Intangible assets                     16,080        16,451        14,484
 Other assets                           8,683         6,256         5,482
                                     --------      --------      --------
  TOTAL ASSETS                      $ 195,181     $ 184,547    $  193,264


LIABILITIES AND SHAREHOLDERS'
 EQUITY
 Current portion of long-term
  debt obligations                  $     556      $    597     $     661
 Accounts payable                      25,312        23,562        27,219
 Accrued liabilities                   32,906        27,993        25,880
                                     --------      --------      --------
Total Current Liabilities              58,774        52,152        53,760
                                     --------      --------      --------

 Line of credit facility               13,399        19,359        37,732
 Long-term debt obligations             9,300         9,588         9,623
 Other long-term liabilities            5,233         5,400         1,947
 Deferred income taxes                  3,943         3,943         3,421
                                     --------      --------      --------
  Total Long-Term Liabilities          31,875        38,290        52,723
                                     --------      --------      --------
 Common stock, $.10 par value,
  25,000,000 shares authorized,
  6,483,244, 6,438,945 and
  6,401,824 shares outstanding,
  respectively                            650           644           640
 Preferred stock, $.10 par value,
  2,000,000 shares authorized,
  250,000 shares designated as
  Series A Preferred Stock, no
  shares issued                             -             -             -
 Treasury stock                          (314)            -             -
 Capital in excess of par              28,789        28,330        27,634
 Retained earnings                     76,559        66,283        58,889
 Accumulated other comprehensive
  loss                                 (1,152)       (1,152)         (382)
                                     --------      --------      --------
  Total Shareholders' Equity          104,532        94,105        86,781
                                     --------      --------      --------
TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY                $195,181      $184,547      $193,264
                                     ========      ========      ========
</TABLE>
    The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
                          GEHL COMPANY AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (in thousands; unaudited)
<CAPTION>
                                                      Six Months Ended
                                                   July 3,       June 27,
                                                    1999           1998
                                                  --------       --------
CASH FLOWS FROM OPERATING ACTIVITIES:
 <S>                                             <C>            <C>
 Net income                                      $  10,276      $   7,874

 Adjustments to reconcile net income to
  net cash provided by operating activities:
  Depreciation                                       2,148          2,118
  Amortization                                         393            351
  Proceeds from sales of finance contracts          36,770         20,994
  Increase in finance contracts receivable         (39,033)       (25,031)
  Cost of sales of finance contracts                 1,414            588
  Net change in working capital items                1,032            159
                                                  --------       --------
  Net cash provided by operating activities         13,000          7,053
                                                  --------       --------
CASH FLOWS FROM INVESTING ACTIVITIES:
 Property, plant and equipment additions, net       (1,687)        (1,598)
 Other assets                                       (2,449)           (38)
                                                  --------       --------
  Net cash used for investing activities            (4,136)        (1,636)
                                                  --------       --------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Decrease in long-term debt obligations               (329)           (77)
(Decrease) increase in long-term
  liabilities                                         (167)            92
 Repayments of credit facility                      (5,960)        (1,625)
 Proceeds from issuance of common stock                465          1,334
 Purchase of treasury stock                           (314)             -
                                                  --------       --------
  Net cash used for financing activities            (6,305)          (276)
                                                  --------       --------
 Net increase in cash                                2,559          5,141
 Cash, beginning of period                             887          1,239
                                                  --------       --------
 Cash, end of period                              $  3,446       $  6,380
                                                  ========       ========
 Supplemental disclosure of cash flow
  information:
  Cash paid for the following:
   Interest                                      $   1,517      $   2,329
   Income taxes                                  $   4,574      $   2,449
</TABLE>
    The accompanying notes are an integral part of the financial statements.
<PAGE>

                          GEHL COMPANY AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                  July 3, 1999
                                   (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 generally accepted accounting principles 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
  six-month periods ended July 3, 1999 and June 27, 1998 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.  The results of operations for the six months ended July 3, 1999
  are not necessarily indicative of the results to be expected for the entire
  year due, in part, to the seasonal nature of the Company's operation.

  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, 1998 as
  filed with the Securities and Exchange Commission.

  NOTE 2 - 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 3 - 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):

                                     July 3,       December 31,     June 27,
                                      1999             1998           1998
                                   ---------       -----------     ----------
   Raw materials and supplies      $  17,068       $  15,656       $   13,217
   Work-in-process                     5,430           5,863            5,522
   Finished machines and parts        25,662          29,970           27,464
                                   ---------       ---------       ----------
   Total current cost value           48,160          51,489           46,203
   Adjustment to LIFO basis          (19,396)        (19,396)         (19,250)
                                   ---------       ---------       ----------
                                   $  28,764       $  32,093        $  26,953
                                   =========       =========       ==========

  NOTE 4 - ACCOUNTING PRONOUNCEMENTS

       The Financial Accounting Standards Board (FASB) has issued Statement of
  Financial Accounting Standards ("SFAS") No. 133 "Accounting for Derivative
  Instruments and Hedging Activities" which was originally effective for
  fiscal quarters of fiscal years beginning after June 15, 1999.  In June
  1999, the effective date was delayed one year and will be effective January
  1, 2001 for the Company.  Due to the Company's current limited use of
  derivative instruments, the adoption of this statement is not expected to
  have a material effect on the Company's financial condition or results of
  operations.

  NOTE 5 - EARNINGS PER SHARE

       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 which would arise from the exercise of stock options and
  warrants.

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

   For the second quarter ended:      July 3, 1999      June 27, 1998
                                      ------------      -------------
   Basic shares                            6,467              6,399
   Effect of options                         262                290
                                      ------------      -------------
   Diluted shares                          6,729              6,689
                                      ============      =============

   For the six months ended:          July 3, 1999      June 27, 1998
                                      ------------      -------------
   Basic shares                            6,461              6,336
   Effect of warrants and options            248                342
                                      ------------      -------------
   Diluted shares                          6,709              6,678
                                      ============      =============

  NOTE 6 - BUSINESS SEGMENTS

    The Company operates in two business segments:  Construction equipment and
  Agriculture equipment.  The long-term financial performance of the Company's
  reportable segments are affected by separate economic conditions and cycles.
  The segments are managed separately based on the fundamental differences in
  their operations.  Effective December 31, 1998, the Company adopted SFAS No.
  131, "Disclosures about Segments of an Enterprise and Related Information."
  The Statement requires the Company to disclose selected segment information
  on an interim basis; this information is set forth below (in thousands):

                    Three Months Ended                 Six Months Ended
                  July 3, 1999   June 27, 1998    July 3, 1999   June 27, 1998

   Net Sales:
     Construction    $ 51,355        $ 45,427       $ 91,601        $ 79,481
     Agriculture       32,493          29,804         61,210          57,038
                     --------        --------       --------        --------
      Consoldated    $ 83,848        $ 75,231       $152,811        $136,519

   Income from Operations:
     Construction    $  7,599        $  6,720       $ 12,393        $  9,760
     Agriculture        4,029           2,779          5,472           4,717
                     --------        --------       --------        --------
      Consolidated   $ 11,628        $  9,499       $ 17,865        $ 14,477


  NOTE 7 - STOCK REPURCHASE

    In March 1999, the Company's Board of Directors authorized the repurchase
  of up to 325,000 shares of the Company's outstanding common stock.  As of
  July 3, 1999, 18,000 shares had been repurchased in the open market under
  this authorization at an aggregate cost of $314,000.

  NOTE 8 - SUBSEQUENT EVENT

    On July 9, 1999, the Company repurchased 725,900 shares of its common
  stock, at a per share purchase price of $20.50, from a shareholder (and
  affiliates) in a privately negotiated transaction.  The aggregate purchase
  price of $14.9 million was financed with borrowings under the Company's
  existing revolving credit facility.  In connection with the repurchase, the
  shareholder agreed not to acquire shares of the Company's stock or take
  certain other actions until after July 9, 2009.  This repurchase does not
  impact the stock repurchase plan discussed in Note 7.

  Item  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
   FINANCIAL CONDITION

  Results of Operations

  Three Months Ended July 3, 1999 Compared to Three Months Ended June 27, 1998

    Net sales for the second quarter of 1999 of $83.8 million were 11% higher
  than the $75.2 million of net sales in the comparable period of 1998.
  Construction equipment net sales increased 13% to $51.3 million in the
  second quarter of 1999 from $45.4 million in the second quarter of 1998. The
  Construction equipment increase resulted from continued strong demand for
  telescopic handlers and service parts shipments.  Agriculture equipment net
  sales increased 9% to $32.5 million in the second quarter of 1999 from $29.8
  million in the second quarter of 1998, due primarily to increased shipments
  of skid loaders and forage harvesting equipment.  Of the Company's total net
  sales reported for the second quarter of 1999, $11.8 million represented
  sales made outside the United States compared with $12.3 million in the
  comparable period of 1998.  The decrease in international sales was due to
  economic disruption in the Far East and Australia.

     Gross profit increased $2.9 million, or 14%, during the second quarter of
  1999 versus the comparable period of 1998, due primarily to increased sales
  volume.  Gross profit as a percent of net sales increased to 28.8% for the
  second quarter of 1999 from 28.1% in the comparable period of 1998.  Gross
  profit as a percent of net sales for Construction equipment increased to
  27.5% in the second quarter of 1999 from 26.3% in the second quarter of
  1998.  The increase in Construction equipment gross margin was a function of
  increased telescopic handler and service parts sales, which sales are at
  higher gross margins than other construction equipment, and improved
  efficiencies at the manufacturing plants.  Gross profit as a percent of net
  sales for Agriculture equipment decreased slightly to 30.8% in the second
  quarter of 1999 from 31.0% in the comparable period of 1998.

     Selling, general and administrative expenses increased $811,000, or 7%,
  during the second quarter of 1999 versus the comparable period of 1998 due
  primarily to sales volume increases and continued investment in engineering
  activities.  As a percent of net sales, selling, general and administrative
  expenses decreased to 14.9% during the second quarter of 1999 versus 15.5%
  in the comparable period of 1998.

     Income from operations in the second quarter of 1999 was $11.6 million
  versus $9.5 million in the second quarter of 1998.

     Interest expense decreased $474,000 to $777,000 in the second quarter of
  1999 from $1,251,000 in the second quarter of 1998.  This resulted from a
  decrease in average debt outstanding to $36.2 million in the second quarter
  of 1999 versus $59.0 million in the second quarter of 1998, and a decrease
  in the average rate of interest paid by the Company to 7.6% in the second
  quarter of 1999 versus 7.8% in the comparable period of 1998.

       Other expense increased $199,000 to $777,000 in the second quarter of
  1999 from $578,000 in the second quarter of 1998.  This was due primarily to
  selling $6.6 million more retail finance contracts to third parties in the
  second quarter of 1999 versus the comparable period of 1998, resulting in an
  increase in the cost of sales of finance contracts.

       Second quarter 1999 net income of $6.8 million was a 30% increase from
  $5.2 million in the second quarter of 1998.  Diluted earnings were $1.01 per
  share for the second quarter of 1999 versus $.78 per share in 1998.

  Six Months Ended July 3, 1999 Compared to Six Months Ended June 27, 1998

     Net sales for the first six months of 1999 of $152.8 million were $16.3
  million, or 12%, higher than the $136.5 million of net sales in the
  comparable period of 1998.  Construction equipment net sales increased 15%
  to $91.6 million in the first six months of 1999 from $79.5 million in the
  first six months of 1998.  The Construction equipment increase resulted from
  continued strong demand for telescopic handlers and service parts shipments.
  Agriculture equipment net sales increased 7% to $61.2 million in the first
  six months of 1999 from $57.0 million in the first six months of 1998.  The
  increase was due to increased shipments of forage harvesting equipment, skid
  loaders and disc mower conditioners offset by reduced shipments of haytools,
  feedmaking and manure handling equipment.  Of the Company's total net sales
  reported for the first six months of 1999, $20.3 million represented sales
  made outside the United States compared with $22.0 million in the
  comparative period of 1998.  The decrease in international sales was due to
  economic disruption in the Far East and Australia.  As the Company has
  increased its sale of Construction equipment products, the Company has been
  successful in reducing the seasonality of its sales.  However, some sales
  seasonality still remains, primarily in the Company's second quarter which
  historically has tended to be its strongest quarter for sales, while sales
  levels have historically tended to be lower in the first and fourth
  quarters.

     Gross profit increased $5.9 million, or 16%, in the first six months of
  1999 versus the comparable period of 1998, due primarily to increased sales
  volume.  Gross profit as a percent of net sales increased to 28.1% for the
  first six months of 1999 from 27.1% in the comparable period of 1998.  Gross
  profit as a percent of net sales for Construction equipment increased to
  27.1% in the first six months of 1999 from 25.5% in the first six months of
  1998.  The increase in Construction gross margin was a function of increased
  telescopic handler and service parts sales, which sales are at higher gross
  margins than other construction equipment, and improved efficiencies at the
  manufacturing plants.  Gross profit as a percent of net sales for
  Agriculture equipment increased to 29.5% for the first six months of 1999
  from 29.4% for the first six months of 1998.

     Selling, general and administrative expenses increased $2.5 million, or
  11%, during the first six months of 1999 versus the comparable period of
  1998 due primarily to sales volume increases and continued investment in
  engineering activities.  As a percent of net sales, selling, general and
  administrative expenses decreased to 16.4% during the first six months of
  1999 versus 16.5% in the comparable period of 1998.

     Income from operations in the first six months of 1999 of $17.9 million
  was 23% higher than the $14.5 million for the comparable period of 1998.

     Interest expense decreased $873,000 to $1.5 million in the first six
  months of 1999 from $2.4 million in the first six months of 1998.  The
  decrease was a result of a decrease in average debt outstanding to $35.7
  million in the first six months of 1999 versus $57.5 million in the
  comparable period of 1998 combined with a decrease in the average rate of
  interest paid by the Company to approximately 7.7% in the first six months
  of 1999 versus 7.9% in the comparable period of 1998.

     Other expense increased $621,000 to $1,217,000 as of July 3, 1999 from
  $596,000 at June 27, 1998.  This was primarily a result of selling $15.8
  million more retail finance contracts to third parties during the six months
  ended July 3, 1999 versus the comparable period of 1998, resulting in an
  increase in the cost of sales of finance contracts.

     Net income of $10.3 million for the six months ended July 3, 1999 was a
  31% increase from $7.9 million for the six months ended June 27, 1998.
  Diluted earnings were $1.53 per share for the six months ended July 3, 1999
  versus $1.18 per share for the six months ended June 27, 1998.

  Financial Condition

     The Company's working capital was $71.8 million at July 3, 1999 as
  compared to $69.7 million at December 31, 1998 and $81.1 million at June 27,
  1998.  The decrease since June 27, 1998 was due primarily to decreases in
  accounts receivable.

       The Company's cash flow provided by operating activities in the first
  six months of 1999 was $13.0 million versus $7.1 million in comparable 1998.

     Capital expenditures for property, plant and equipment during the first
  six months of 1999 were approximately $1.7 million.  The Company expects to
  make approximately $11.0 million of capital expenditures during 1999, which
  includes approximately $5 million related to plant expansion activities at
  its two South Dakota construction equipment manufacturing facilities.  The
  capital expenditures are expected to be funded with borrowings under the
  Company's existing line of credit facility.  Outstanding capital expenditure
  commitments as of July 3, 1999 totaled approximately $1.2 million.

     As of July 3, 1999, the weighted average interest rate paid by the
  Company on outstanding borrowings under its line of credit facility was
  7.2%.  The Company had available unused borrowing capacity of $60.2 million,
  $53.1 million and $35.8 million under the line of credit facility at July 3,
  1999, December 31, 1998 and June 27, 1998, respectively.  At July 3, 1999,
  December 31, 1998 and June 27, 1998, the borrowings outstanding under the
  line of credit facility were $13.4 million, $19.4 million and $37.7 million,
  respectively.

     The sale of finance contracts is an important component of the
  Company's overall liquidity.  Gehl has arrangements with several financial
  institutions and finance service companies to sell, with recourse, its
  finance contracts receivable.  The Company continues to service
  substantially all contracts whether or not sold.  At July 3, 1999, Gehl
  serviced $97.9 million of such contracts, of which $81.4 million were owned
  by other parties.  The Company believes that it has sufficient capacity to
  sell its retail finance contracts for the foreseeable future.

     Shareholders' equity at July 3, 1999 was $104.5 million.  This amount
  was $17.7 million higher than the $86.8 million of shareholders' equity at
  June 27, 1998, due primarily to income earned from June 28, 1998 through
  July 3, 1999.

     On July 9, 1999, the Company repurchased 725,900 shares of its common
  stock, at a per share purchase price of $20.50, from a shareholder (and
  affiliates) in a privately negotiated transaction.  The aggregate purchase
  price of $14.9 million was financed with borrowings under the Company's
  existing revolving credit facility.

  Accounting Pronouncements

     The Financial Accounting Standards Board (FASB) has issued Statement of
  Financial Accounting Standards ("SFAS") No. 133 "Accounting for Derivative
  Instruments and Hedging Activities" which was originally effective for
  fiscal quarters of fiscal years beginning after June 15, 1999.  In June
  1999, the effective date was delayed by one year and will be effective
  January 1, 2001 for the Company.  Due to the Company's current limited use
  of derivative instruments, the adoption of this statement is not expected to
  have a material effect on the Company's financial condition or results of
  operations.

  Year 2000

     The Year 2000 issue refers to computer systems which use two digits
  rather than four to define a given year and which therefore might read a
  date using "00" as the year 1900 rather than the Year 2000.   As the Year
  2000 approaches, such systems may be unable to process certain date-based
  information.  This could result in system failure or miscalculations causing
  disruptions of operations and the potential inability to engage in normal
  business activities.

       In 1995, a Company-wide program was initiated to prepare its
  Information Technology (IT) systems and applications for the Year 2000.  The
  initial focus of the Company's program contained the following steps:
  assessment of the relevant issues; planning the conversion; implementing the
  conversion; and testing.  Those systems determined to be at risk were
  prioritized and plans were put in place to upgrade systems by remediation,
  replacement or outsourcing. By the end of June 1999, the assessment and
  planning phases have been completed for all IT systems and applications.
  The Company's objective to become Year 2000 compliant with its mission
  critical IT activities and systems by mid-1999 has been met, allowing
  substantial time for further testing, verification and the final completion
  of less important systems in the second half of 1999.

     In addition to the IT systems review noted above, the Company has
  initiated processes to review and to modify, where appropriate, other areas
  impacted by Year 2000.   These areas include, but are not limited to,
  personal computer hardware and software, remote location access to IT
  systems, facility  management and certain non-IT issues, such as the extent
  to which embedded chips are used in machinery and equipment used in
  operations.  The Company has completed assessments and testing in all of the
  above areas.

     The Company is in the process of communicating with its significant
  vendors to determine the extent to which the Company is vulnerable to those
  third parties failure to remediate their own Year 2000 compliance issues.
  The Company cannot guarantee that the failure of another company to be Year
  2000 compliant will not have an adverse effect on the Company.

     The Company believes that it has no exposure to contingencies related
  to the Year 2000 issue for products it has sold.  The Company has evaluated
  its major customers and believes that the failure of these companies to
  adequately prepare for Year 2000 issues will not have a material adverse
  effect on the Company.

     The Company expects to incur consulting and other expenses related to
  its Year 2000 program. The cost of testing and the conversion of existing
  and replacement system applications are not expected to exceed $400,000,
  the majority of which expense has already been incurred.  These costs have
  been and will continue to be treated as period costs and expensed as
  incurred.

     Based upon the progress to date, the Company does not believe that
  either future costs of modifications or the consequences of any unsuccessful
  modifications being implemented by the Company will have a material adverse
  effect on its financial position or results of operations.  Nevertheless,
  since it is not possible to anticipate all possible future situations,
  especially when third parties are involved, the Company believes that the
  most reasonably likely worst case Year 2000 scenario could result in
  circumstances in which the Company may be unable to take customer orders,
  manufacture and ship products, invoice customers or collect payments.  The
  Company continues to evaluate whether a contingency plan to deal with any
  expected Year 2000 related failures is warranted.

     No assurances can be given that Year 2000 compliance failures, if any,
  particularly as they relate to third parties, will not have a material
  adverse effect on the Company's financial position or results of operations.

  Forward-Looking Statements

     Certain matters discussed in this Quarterly Report on Form 10-Q are
  "forward-looking statements" intended to qualify for the safe harbors from
  liability established by the Private Securities Litigation Reform Act of
  1995.  These forward-looking statements can generally be identified as such
  because the context of the statement will include such words as the Company
  "believes," "anticipates" or "expects," or words of similar import.
  Similarly, statements that describe the Company's future plans, objectives
  or goals are also forward-looking statements.  The forward-looking
  statements are subject to certain risks and uncertainties which could cause
  actual results to differ materially from those currently anticipated.  Such
  risks and uncertainties include competitive conditions in the markets served
  by the Company, changes in the Company's plans regarding capital
  expenditures, general economic conditions, unanticipated events related to
  resolving Year 2000 issues, market acceptance of existing and new products
  manufactured by the Company, changes in the cost of raw materials and
  component parts purchased by the Company, and interest and foreign currency
  fluctuations.  Shareholders, potential investors and other readers are urged
  to consider these factors carefully in evaluating the forward-looking
  statements and are cautioned not to place undue reliance on such forward-
  looking statements.

  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, 1998 as filed with the Securities and Exchange
  Commission.

<PAGE>
                           PART II - OTHER INFORMATION

  Item 4.   Submission of Matters to a Vote of Security Holders

     At the Company's annual meeting of shareholders held on April 21, 1999,
  Nicholas C. Babson, Thomas J. Boldt and William P. Killian were elected as
  directors of the Company for terms expiring in 2002 and Hermann Viets was
  elected for a term expiring in 2000.  The following table sets forth certain
  information with respect to the election of directors at the annual meeting:

   Name of Nominee         Shares        Shares Withholding
                           Voted For     Authority

   Hermann Viets           5,477,738          201,667
   Nicholas C. Babson      5,469,538          209,967
   Thomas J. Boldt         5,039,164          640,241
   William P. Killian      5,481,036          198,369

     The following table sets forth the other directors of the Company whose
  terms of office continued after the 1999 annual meeting:

   Name of Director           Year in Which Term Expires

   John W. Gehl                     2000*
   Arthur W. Nesbitt                2000
   Fred M. Butler                   2001
   William D. Gehl                  2001
   John W. Splude                   2001

  *Mr. J.W. Gehl retired as a director on July 19, 1999.

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

       (a)  Exhibits

       27   Financial Data Schedule [EDGAR version only]

       (b)  Reports on Form 8-K

       No reports on Form 8-K were filed by the Company during the quarter
       ended July 3, 1999.


                                   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:  August 13, 1999              By: /s/ William D. Gehl
                                          William D. Gehl
                                          Chairman of the Board,
                                          President and Chief
                                          Executive Officer

  Date:  August 13, 1999              By: /s/ Kenneth P. Hahn
                                          Kenneth P. Hahn
                                          Vice President of Finance,
                                          Treasurer and Chief Financial
                                          Officer
                                          (Principal Financial and
                                          Accounting Officer)

<PAGE>
                                  GEHL COMPANY

                                    FORM 10-Q

                                  July 3, 1999

                                  EXHIBIT INDEX


  Exhibit
  Number              Document Description

   27          Financial Data Schedule [EDGAR version only]