# UNITED
STATESSECURITIES 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
March 31, 2008

# 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
01-33504

|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 a large accelerated filer, an accelerated filer, a non-accelerated filer, or
a smaller reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of
the Exchange Act.

Large accelerated filer
      Accelerated filer X      Non-accelerated
filer  Smaller reporting company

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 March 31, 2008
|---------------------------- | -----------------------------
|Common Stock, $.10 Par Value | 12,132,735                   

---

# Gehl Company

# FORM 10-Q

# March 31, 2008

# Report Index

|                                                                                  
|----------------------------------------------------------------------------------
|PART I - Financial Information                                                    
|Item 1. Financial Statements                                                      
|Condensed Consolidated Statements of Operations for the Three Month               
|Periods Ended March 31, 2008 and 2007                                             
|Condensed Consolidated Balance Sheets at March 31, 2008,                          
|December 31, 2007, and March 31, 2007                                             
|Condensed Consolidated Statements of Cash Flows for the Three Month Periods Ended 
|March 31, 2008 and 2007                                                           
|Notes to Condensed Consolidated Financial Statements                              
|Item 2. Managements Discussion and Analysis of Financial Condition and Results of
|Operations                                                                        
|Item 3. Quantitative and Qualitative Disclosures about Market Risk                
|Item 4. Controls and Procedures                                                   
|PART II - Other Information                                                       
|Item 1A. Risk Factors                                                             
|Item 2. Unregistered Sales of Equity Securities and Use of Proceeds               
|Item 6. Exhibits                                                                  
|Signatures                                                                        

-2-

---

# PART I  Financial
Information

# Item 1. Financial
Statements

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

|                                                            
|------------------------------------------------------------
|March 31, 2007                                              
|Net sales                                                   
|Cost of goods sold                                          
|                                                            
|Gross profit                                                
|Selling, general and administrative expenses                
|                                                            
|Income from operations                                      
|Interest expense                                            
|Interest income                                             
|Other expense, net                                          
|                                                            
|(Loss) income from continuing operations before income taxes
|(Benefit) provision for income taxes                        
|                                                            
|(Loss) income from continuing operations                    
|Loss from discontinued operations, net of tax               
|                                                            
|Net (loss) income                                           
|                                                            
|Diluted net (loss) income per share:                        
|Continuing operations                                       
|Discontinued operations                                     
|                                                            
|Total diluted net (loss) income per share                   
|                                                            
|Basic net (loss) income per share:                          
|Continuing operations                                       
|Discontinued operations                                     
|                                                            
|Total basic net (loss) income per share                     
|                                                            

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)

|                                                       | March 31, 2008
|------------------------------------------------------ | --------------
|Assets                                                 |               
|Cash                                                   |               
|Accounts receivable - net                              |               
|Finance contracts receivable - net                     |               
|Inventories                                            |               
|Retained interest in sold finance contracts receivable |               
|Deferred income tax assets                             |               
|Prepaid expenses and other current assets              |               
|                                                       |               
|Total current assets                                   |               
|                                                       |               
|Property, plant and equipment - net                    |               
|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                             |               
|Other long-term liabilities                            |               
|                                                       |               
|Total long-term liabilities                            |               
|                                                       |               
|Common stock, $.10 par value, 25,000,000 shares        |               
|authorized, 12,132,735, 12,127,623 and 12,222,155      |               
|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
SubsidiariesCondensed Consolidated Statements of Cash Flows  (unaudited and in thousands)

|                                                         
|---------------------------------------------------------
|March 31, 2007                                           
|Cash Flows from Operating Activities                     
|Net (loss) income                                        
|Adjustments to reconcile net (loss) income to net cash   
|used for operating activities:                           
|Depreciation and amortization                            
|Compensation expense for long-term incentive stock grants
|Cost of sales of finance contracts                       
|Proceeds from sales of finance contracts                 
|Increase in finance contracts receivable                 
|Increase in retained interest in sold finance contracts  
|Increase (decrease) 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  
|Increase in other assets                                 
|                                                         
|Net cash used for investing activities                   
|                                                         
|Cash Flows from Financing Activities                     
|Proceeds from revolving credit loans                     
|Proceeds (repayments) of short-term borrowings           
|Purchase of treasury shares                              
|                                                         
|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 (refunded) for the following:                  
|Interest                                                 
|Income taxes                                             

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

-5-

---

Gehl Company and
Subsidiaries  Notes to Condensed Consolidated Financial StatementsMarch 31, 2008
 (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. The year-end condensed balance sheet data was
derived from audited financial statements, but does not include all disclosures required
by accounting principles generally accepted in the United States of America.

In
the opinion of management, the information furnished for the three month periods ended
March 31, 2008 and 2007 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. Due, in part, to the seasonal nature of the Companys
business, the results of operations for the three month period ended March 31, 2008 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, 2007, as filed with the Securities and Exchange
Commission.

# Note 2 
Significant Accounting Policies

Accounting
Pronouncements: In September 2006, the Financial Accounting Standards Board
(FASB) issued Statement of Financial Accounting Standards (SFAS)
No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair
value, establishes a framework for measuring fair value and expands disclosures about fair
value measurements, but does not change existing guidance as to whether or not an
instrument is carried at fair value. SFAS 157 is effective for fiscal years beginning
after November 15, 2007. In February 2008, the FASB issued a final Staff Position to allow
a one-year deferral of adoption of SFAS 157 for nonfinancial assets and nonfinancial
liabilities that are recognized or disclosed at fair value in the financial statements on
a nonrecurring basis.  The FASB also issued a final Staff Position to exclude FASB
Statement No. 13 and its related interpretive accounting pronouncements that address
leasing transactions. The Company recorded a $1.4 million, or $0.11 per share, after-tax
charge in the first quarter of 2008 related to implementing SFAS 157 on the consolidated
financial statements. See Note 4 and Note 13 for additional information related to the
adoption of SFAS 157.

In
March 2008, the FASB issued SFAS No. 161 Disclosures about Derivative Instruments
and Hedging Activities  an amendment of SFAS 133". SFAS No. 161 is intended to
improve financial reporting about derivative instruments and hedging activities by
requiring enhanced disclosures to enable investors to better understand their effects on
an entitys financial position, financial performance, and cash flows. This statement
will be applicable to the Company on January 1, 2009. The Company is currently evaluating
the impact that this standard will have on its financial statements.

-6-

---

# Note 3  Income
Taxes

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

The
Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction, and
various state and foreign jurisdictions. Effective January 1, 2007, the Company adopted
FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes  an
interpretation of FASB Statement No. 109 (FIN 48). In accordance with
FIN 48, the Company recognized a cumulative-effect adjustment of $0.5 million, increasing
its liability for unrecognized tax benefits along with related interest and penalties, and
reducing the January 1, 2007 balance of retained earnings.

At
March 31, 2008, the Company had $3.7 million in unrecognized tax benefits, the recognition
of which would have an effect of $3.1 million on the effective tax rate. At March 31,
2007, the Company had unrecognized tax benefits of $3.1 million, which would have an
effect of $2.7 million on the effective tax rate. The Company does not believe it is
reasonably possible that its unrecognized tax benefits will significantly change within
the next twelve months.

# Note 4  Finance
Contracts Receivable Financing

The
Company maintains an asset securitization facility (the Securitization
Facility) with a financial institution (the Purchaser) whereby the
Company can sell, through a revolving securitization facility, retail and fleet
installment sale contracts (installment sale contracts or finance
contracts receivable). On March 31, 2008 the Securitization Facility was amended to
adjust the total facility size from $300 million to $200 million. The amendment also
resolved all previous exceptions that resulted in the reservation of rights agreement in
operation at December 31, 2007. The Securitization Facility has a final maturity date in
July 2009, subject to annual renewal by the Purchaser. Under the Securitization Facility,
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 of the SPE.
The wholly-owned bankruptcy-remote special purpose subsidiary of the SPE sells a
participating interest in each such portfolio of finance contracts receivable to the
Purchaser (maximum 85% of the discounted value of the finance contract receivable
portfolio). 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 has retained collection and administrative responsibilities for each sold
portfolio of finance contracts receivable.

-7-

---

The
following summarizes the Companys sales of retail finance contracts receivable
through the Securitization Facility for the three months ended March 31, 2008 and 2007 (in
thousands):

|                                    | March 31, 2008
|----------------------------------- | --------------
|Value of contracts sold             |               
|Cash received on sales of contracts |               
|                                   
|Retained interest in contracts sold |               
|                                   
|Impact of SFAS 157                  |               
|                                   
|Cost of sales of finance contracts  |               
|                                   

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 March 31, 2008, the fair value of
the retained interest was calculated using a discount rate of 3.70%, an approximate 17
month weighted-average prepayable portfolio life and an approximate 1.9% loss rate.
Changes in any of these assumptions could affect the calculated value of the retained
interest. A 10% increase in the discount rate would decrease the fair value of the
retained interest by $0.3 million. A 10% increase in the loss rate would decrease the fair
value of the retained interest by $0.5 million. Retained interest of $59.9 million, $47.7
million and $28.4 million was included in current assets at March 31, 2008, December 31,
2007 and March 31, 2007, respectively, and $26.6 million, $28.1 million and $17.4 million
was included in other assets in the accompanying Condensed Consolidated Balance Sheets at
March 31, 2008, December 31, 2007 and March 31, 2007, respectively. See Note 13 for
additional information on the fair value measurement of the retained interest.

The
total credit capacity under the Securitization Facility is $200 million, as amended on
March 31, 2008, with an outstanding note balance of $193.2 million at March 31, 2008.
Finance contracts receivable sold and being serviced by the Company under the
Securitization Facility totaled $271.8 million at March 31, 2008. Of the $271.8 million in
sold contracts receivable, $25.1 million were greater than 60 days past due at March 31,
2008. There were no credit losses on contracts sold through the program during the three
months ended March 31, 2008 and 2007. The Company received $0.7 million and $0.6 million
in service fee income during the three months ended March 31, 2008 and 2007, respectively.

In
addition to the sale of finance contracts receivable through the Securitization Facility,
the Company sold finance contracts through limited recourse arrangements during 2008 and
2007. Based on the terms of these sales, recourse to the Company is limited to 5% of the
sold portfolio of finance contracts receivable. Amounts to cover potential losses on these
sold finance contracts receivable are included in the allowance for doubtful accounts. The
following table summarizes the Companys sales of finance contracts receivable
through these arrangements for the three months ended March 31, 2008, and 2007 (in
thousands):

|                                    | 2008
|----------------------------------- | ----
|Value of contracts sold             |     
|Cash received on sales of contracts |     
|                                   
|Cost of sales of finance contracts  |     
|                                   

-8-

---

At
March 31, 2008, the Company serviced $355.9 million of finance contracts receivable of
which $271.8 million, $59.6 million and $6.3 million were sold through the Securitization
Facility, limited recourse arrangements and full recourse arrangements, respectively.

The
finance contracts require periodic installments of principal and interest over periods of
up to 72 months, with interest rates based on market conditions. The Company has retained
the servicing of substantially all of these contracts which generally have maturities of
12 to 60 months.

The
sales of finance contracts receivable 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 Sheets and the proceeds received are
included in cash flows from operating activities in the accompanying Condensed
Consolidated Statements of Cash Flows.

# Note 5  Accounts
Receivable

Accounts
receivable were comprised of the following (in thousands):

|                             | March 31, 2008
|---------------------------- | --------------
|Accounts receivable          |               
|Less allowances for:         |               
|doubtful accounts            |               
|returns and dealer discounts |               
|                            
|                             |               
|                            

The
Company retains as collateral a security interest in the equipment associated with
accounts receivable.

# Note 6  Finance
Contracts Receivable

Unsold
finance contracts receivable were comprised of the following (in thousands):

|                             | March 31, 2008
|---------------------------- | --------------
|Finance contracts receivable |               
|Less: doubtful accounts      |               
|                            
|                             |               
|Less: non-current portion    |               
|                            
|                             |               
|                            

The
unsold finance contracts receivable at March 31, 2008 have a weighted-average interest
rate of approximately 6.9%. The Company retains as collateral a security interest in the
equipment associated with unsold finance contracts receivable. The Company also maintains
certain levels of dealer recourse deposits as additional security associated with finance
contracts receivable. The dealer recourse deposits totaled $2.2 million and $2.3 million
at March 31, 2008 and 2007, respectively.

-9-

---

# Note 7  Inventories

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

|                            | March 31, 2008
|--------------------------- | --------------
|Raw materials and supplies  |               
|Work-in-process             |               
|Finished machines and parts |               
|                           
|Total current cost value    |               
|Adjustment to LIFO basis    |               
|                           
|                            |               
|                           

# Note 8  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
Companys 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 three months ended
March 31, 2008 and 2007 were as follows (in thousands):

|March 31, 2008                                         
|-------------------------------------------------------
|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                                         
|                                                       

-10-

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# Note 9  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):

|March 31, 2008                    
|----------------------------------
|Service cost                      
|Interest cost                     
|Expected return on plan assets    
|Amortization of prior service cost
|Amortization of net loss          
|                                  
|Net periodic benefit cost         
|                                  

The
Company does not anticipate making any contributions to the pension plans during 2008. No
contributions were made during the three month period ended March 31, 2008. The Company
early adopted SFAS 158, Employers Accounting for Defined Benefit Plans and
Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106 and
132(R) which requires Companies to measure plan assets and liabilities as of the end
of a fiscal year rather than a date within ninety days of the end of the fiscal year.
 Effective January 1, 2008, the Company changed their measurement date from September
30 to December 31.  The impact of the adoption was an increase in total liabilities
of $0.2 million, an increase in total assets of $0.1 million a decrease to retained
earnings, net of tax, of $0.1 million

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):

|March 31, 2008                    
|----------------------------------
|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):

|March 31, 2008                       
|-------------------------------------
|Service cost                         
|Interest cost                        
|Amortization of transition obligation
|Amortization of net loss             
|                                     
|Net periodic benefit cost            
|                                     

# Note 10 
Shareholders Equity

The
Company maintains equity incentive plans for certain of its directors, officers and key
employees. The Company currently has three primary equity incentive plans: the 2004 Equity
Incentive Plan, the 2000 Equity Incentive Plan and the 1995 Stock Option Plan. The 2004
Equity Incentive Plan, which was adopted in April 2004 and amended in April 2006,
authorizes the granting of awards with respect to up to 737,500 shares of the
Companys common stock. During April 2000, the 2000 Equity Incentive Plan was
adopted, which authorizes the granting of awards with respect to up to 812,771 shares of
the Companys common stock. An award is defined within the 2004 and 2000 Equity
Incentive Plan as a stock option, a stock appreciation right, restricted stock or a
performance share. In April 1996, the 1995 Stock Option Plan was adopted, which authorizes
the granting of options to purchase up to 726,627 shares of the Companys common
stock. These plans provide that options be granted at an exercise price not less than fair
market value on the date the options are granted and that the options generally vest
ratably over a period not exceeding three years after the grant date. The option period
may not be more than ten years after the grant date.

-11-

---

There
were no stock options awarded in the three months ended March 31, 2008 and 2007. Awards of
stock options under the plans are subject to certain vesting requirements and are
accounted for using the fair value based method. In the three months ended March 31, 2008
and 2007, the Company awarded 182,801 and 132,087 stock appreciation rights, respectively,
to certain key employees at the fair market value on the grant date. The stock
appreciation rights can only be cash-settled and are subject to certain vesting
requirements.

In
2008 and 2007, the Company awarded restricted shares under the 2004 Equity Incentive Plan
to certain key employees. Awards of restricted stock under the plan are subject to certain
vesting requirements. There were 35,112 and 25,118 restricted shares awarded in the three
months ended March 31, 2008 and 2007, respectively, with an average fair market value of
$17.33 and $28.68 per share, respectively. Compensation expense related to restricted
stock awards is based upon the market price at the date of award and is charged to
earnings over the vesting period.

# Note 11  Net
(Loss) Income Per Share and Comprehensive Income

Basic
net (loss) income per common share is computed by dividing net (loss) 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 and vesting of restricted stock. A reconciliation of the shares
used in the computation of earnings per share follows (in thousands):

|                               | March 31, 2008
|------------------------------ | --------------
|Basic shares                   |               
|Effect of options and unvested |               
|restricted stock               |               
|                              
|Diluted shares                 |               
|                              

For
the three months ended March 31, 2008, 732,308 options to purchase common shares and
94,723 restricted shares were antidilutive and, accordingly, excluded from the effect of
options and unvested restricted stock in the calculation of diluted earnings per share.
For the three months ended March 31, 2007, 125,284 options to purchase common shares were
antidilutive.

-12-

---

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

|                                          
|------------------------------------------
|March 31, 2007                            
|Net (loss) income                         
|Foreign currency translation adjustments  
|Amortization of pension losses, net of tax
|Unrealized losses                         
|                                          
|Other comprehensive income                
|                                          
|Comprehensive income                      
|                                          

# Note 12  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.

In
September 2007, 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. The forward contracts expire
between June 16, 2008 and December 15, 2008 and have a notional amount of 6.0
million ($8.4 million) and contract rates ranging from 1.0:$1.4003 to
1.0:$1.4014. As the contracts are deemed ineffective under the provisions of SFAS
No. 133, Accounting for Derivative Instruments and Hedging Activities
(SFAS 133), the Company recorded an increase to current liabilities and an
increase to other expense of $0.7 million during the three months ended March 31, 2008.

In
2005, the Company entered into an interest rate swap agreement with a third party
financial institution to exchange variable rate interest obligations for fixed rate
obligations without the exchange of the underlying principal amounts. Effective January
2006, under this agreement, the Companys variable to fixed rate obligations were an
aggregate swapped notional amount of $40 million through January 2008. The aggregate
notional amount of the swap decreased to $30 million effective January 2008 and will
decrease to $20 million effective January 2009 and $10 million effective January 2010
before the swap expires in January 2011. The Company pays a 4.89% fixed interest rate
under the swap agreement and receives a 30 day LIBOR variable rate. The referenced 30 day
LIBOR rate was 2.70% at March 31, 2008. The variable to fixed interest rate swap is an
effective cash-flow hedge. The fair value of the swap was a liability of $1.3 million at
March 31, 2008 and was recorded in other long-term liabilities on the Condensed
Consolidated Balance Sheets, with changes in fair value included in other comprehensive
income.

In
connection with the Companys Securitization Facility, the Company and the SPE are
parties to interest rate swap agreements to manage the SPEs interest rate exposure
from floating rate debt. The term and notional balances of the swap agreements are matched
to the anticipated repayment profile of the aggregate portfolio of securitized finance
contracts. Effective March 31, 2008, the Companys variable to fixed rate obligations
are an aggregate swapped notional balance of $258.5 million decreasing over time to $0 by
December 31, 2013. As of March 31, 2008, the Company pays a fixed rate of 4.93% under the
swaps (which adjusts monthly) and receives a 30 day LIBOR variable rate. The reference 30
day LIBOR rate was 2.70% at March 31, 2008. The swaps are deemed ineffective under the
provisions of SFAS 133. Accordingly, changes in fair value are recognized in earnings each
period as part of the Companys retained interest valuation. At March 31, 2008, the
Companys retained interest calculation was reduced by $10.9 million as a result of
the swap liability.

-13-

---

# Note 13  Fair
Value Measurements

On
January 1, 2008, the Company prospectively adopted SFAS 157, Fair Value Measurements(SFAS
157). See Note 2 for additional information. While SFAS 157 does not expand the use
of fair value measurements in any new circumstance, it applies to several current
accounting standards that require or permit measurement of assets and liabilities at fair
value. SFAS 157 provides a common definition of fair value and establishes a framework to
make the measurement of fair value in generally accepted accounting principles more
consistent and comparable. SFAS 157 defines fair value as the exchange price that would
be received for an asset or paid to transfer a liability (an exit price) in the principal
or most advantageous market for the asset or liability in an orderly transaction between
market participants. SFAS 157 also specifies a fair value hierarchy based upon the
observability of inputs used in valuation techniques. Observable inputs (highest level)
reflect market data obtained from independent sources, while unobservable inputs (lowest
level) reflect internally developed assumptions about the assumptions a market
participant would use.

In
accordance with SFAS 157, fair value measurements are classified under the following
hierarchy:

| | Level
1  Quoted prices for identical instruments in active markets.
|- | --------------------------------------------------------------------

| | Level
2  Quoted prices for similar instruments; quoted prices for identical or similar
instruments in markets that are not active; and model-derived valuations in which all
significant inputs or significant value-drivers are observable.
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Level
3  Model-derived valuations in which one or more inputs or value-drivers are both
significant to the fair value measurement and unobservable.
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------

If
applicable, the Company uses quoted market prices in active markets to determine fair value, and therefore
classify such measurements within Level 1. In some cases where market prices are not
available, the Company makes use of observable market based inputs to calculate fair
value, in which case the measurements are classified within Level 2. If quoted or
observable market prices are not available, fair value is based upon internally developed
models that use, where possible, current market-based parameters such as interest rates,
yield curves, currency rates, etc.  These measurements are classified within
Level 3 if they use significant unobservable inputs. Fair value measurements are classified according to the lowest level input or
value-driver that is significant to the valuation.

Fair
value measurements impacted by SFAS 157 include:

Derivative financial instruments

The
fair value of interest rate swap derivatives is primarily based on pricing models. These
models use discounted cash flows that utilize the appropriate market-based forward swap
curves and zero-coupon interest rates.

The
fair value of foreign currency forward contracts is based on a pricing model that
discounts cash flows resulting from the differential between the contract price and the
market-based forward rate.

-14-

---

Securitized retained interests

The
fair value of securitized retained interest is based upon a valuation model that
calculates the present value of future expected cash flows using a quoted discount rate
on a similar asset, adjusted for credit and liquidity risk as appropriate, in addition to
key assumptions for prepayment speeds and loss factors among others. These assumptions
are based on our historical experience, market trends and anticipated performance
relative to the particular assets securitized. Included in the fair value measurement of
securitized retained interest is a derivative financial instrument discussed in Note 12.

The
following table provides the assets and liabilities that were recognized at fair value on
a recurring basis as of March 31, 2008 (in thousands):

|                                    | Level 1 | Level 2 | Level 3 | Total Assets /
Liabilities at
Fair Value
|----------------------------------- | ------- | ------- | ------- | ----------------------------------------
|Assets                              |         |         |         |                                         
|Securitized Retained Interest(1)    |         |         | $       | --                                      
|Liabilities                         |         |        
|Derivative Financial Instruments(2) |         |         | $       | --                                      
|                                   

| | (1) | Of
the total securitized retained interest, $59,905 is recorded in retained
                    interest in sold finance contracts receivable and $26,613 is included
in other                     long-term assets on the Condensed Consolidated Balance
Sheets.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Of
the total derivative financial instruments, $995 is recorded in accrued and
               other current liabilities and $1,295 is included in other long-term
liabilities                on the Condensed Consolidated Balance Sheets.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Below
is a roll-forward of the securitized retained interest measured at fair value using Level 3 inputs
for the three months ended March 31, 2008. This instrument was valued using pricing models
that, in managements judgment, reflect the assumptions a marketplace participant
would use.

|                                          | Securitized Retained
Interest
|----------------------------------------- | -----------------------------
|Balance at December 31, 2007              |                              
|Unrealized losses                         |                              
|Purchases, issuances and settlements, net |                              
|                                          |                              
|Balance at March 31, 2008                 |                              
|                                         

The
Company has recorded a pre-tax charge of $2.0 million in the quarter ended March 31, 2008
related to the adoption of SFAS 157 in other expense, net on the Condensed Consolidated
Statements of Operations. The charge is the result of a higher discount rate required to
achieve fair value measurement, as defined,  under SFAS 157. See Note 4 for information regarding assumptions used in the
valuation of retained interest.

-15-

---

# Note 14 
Subsequent Events

On
April 23, 2008, the Company completed the sale of the corporate office building and
surrounding properties to the City of West Bend per the agreement announced in August
2007. Proceeds on the sale totaled $1.0 million and there is no gain or loss to be
recognized on the sale. The Company will continue to rent the property and office space
from the City of West Bend until the completion of the new research and development and
corporate office locations which are anticipated to be completed in the Fall of 2008 and
Spring of 2009, respectively.

-16-

---

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

# Results of Operations

# Three Months Ended March
31, 2008 Compared to Three Months Ended March 31, 2007

# Net Sales

Net
sales in the three months ended March 31, 2008 (2008 first quarter) were $82.2
million compared to $115.2 million in the three months ended March 31, 2007 (2007
first quarter), a decrease of $33.1 million, or 29%. The impact of continuing
weakness in North American residential construction activity and lower capital investments
by equipment rental companies was partially offset by continuation of market share gains
in the Companys two primary product categories, skidloaders and telehandlers, and
strong agricultural markets. The Companys North American retail skid loader volume
decreased less than 2% during the first quarter of 2008 versus the same period of 2007,
while based on data released by the Association of Equipment Manufacturers
(AEM), the overall industry retail numbers decreased over 14% for the quarter.
The Companys telehandler retail demand declined 18% in the first quarter in an
industry-wide market that declined over 43% as reported by AEM. In addition, the Company
reduced its field inventory levels by $18.0 million during the first quarter of 2008
compared to an increase in field inventory of $13.0 million during the same period of
2007.

Of
the Companys total net sales reported for the 2008 first quarter, $28.0 million were
made to customers residing outside of the United States compared with $32.0 million in the
2007 first quarter. The decrease in export sales was primarily due to decreased sales of
non-skid loader units by the Companys European subsidiary, Gehl Europe. Due to the
relative strength of the European construction markets, skid loader shipments outside of
North America increased to 49% of total Company skid loader sales versus 46% a year
earlier.

# Gross Profit

Gross
profit was $18.4 million in the 2008 first quarter compared to $25.8 million in the 2007
first quarter, a decrease of $7.4 million, or 29%, due primarily to the reduction in net
sales. Gross profit as a percentage of net sales (gross margin) was 22.4% in
both the 2008 and 2007 first quarters. Gross margin in 2008 was favorably impacted by
approximately 1.8 percentage points due to 2007 and 2008 price increases. Gross margin
remained flat despite significant increases in costs of steel and component parts, as a
result of favorable product mix, effective supply chain management, tight cost control and
cost savings due to investments in state-of-the-art manufacturing equipment.

# Selling, General and
Administrative Expenses

Selling,
general and administrative expenses were $16.3 million, or 19.9% of net sales, in the 2008
first quarter compared to $15.0 million, or 13.0% of net sales, in the 2007 first quarter.
The increase in selling, general and administrative expenses as a percentage of net sales
primarily reflects the decrease in sales, along with planned increased investments in
research and development and information technology projects totaling $0.8 million. The
increase also includes $0.4 million of charges related to streamlining the Gehl and
Mustang sales and support organizations, which the Company anticipates will generate
ongoing annual cost savings of approximately $1.0 million.

-17-

---

# Income from Operations

Income
from operations in the 2008 first quarter was $2.0 million, or 2.5% of net sales, compared
to income from operations of $10.8 million, or 9.4% of net sales, in the 2007 first
quarter, a decrease of $8.8 million, or 81%.

# Interest Expense

Interest
expense was $1.0 million in the 2008 first quarter compared to $0.9 million in the 2007
first quarter, an increase of $0.1 million. The increase in interest expense was primarily
due to increased debt levels, partially offset by reduced borrowing costs, throughout the
2008 first quarter.

# Interest Income

Interest
income was $0.7 million in the 2008 first quarter compared to $1.0 million in the 2007
first quarter, a decrease of $0.3 million. The decrease in interest income was due to the
decrease in average finance contracts receivable and wholesale receivables in the 2008
first quarter compared to the 2007 first quarter driven by the efforts to reduce field
inventory levels as discussed above.

# Net Other Expense

The
Company recorded net other expense of $2.9 million and $1.0 million in the 2008 first
quarter and 2007 first quarter, respectively. The change in net other expense was
primarily due to the $2.0 million charge related to the adoption of SFAS 157. See Note 13
to the Condensed Consolidated Financial Statements Fair Value Measurements for
additional detail.

# Provision for Income
Taxes

The
Companys effective income tax rate was 31.5% as of March 31, 2008 compared to 34.5%
in the first quarter of 2007. The decrease in the effective tax rate is primarily due to a
higher domestic manufacturing deduction and research and development credit.

# (Loss) Income from
Continuing Operations

Loss
from continuing operations in the 2008 first quarter was $0.8 million, or (1.0%) of net
sales, compared to income from continuing operations of $6.5 million, or 5.6% of net
sales, in the 2007 first quarter, a decrease of $7.3 million, or 112%. The 2008 first
quarter loss from continuing operations included a $1.4 million after-tax charge related
to the adoption of SFAS 157. See Note 13 to the Condensed Consolidated Financial Statements Fair Value Measurements for
additional detail.

# Net (Loss) Income

The
Company recorded a net loss in the 2008 first quarter of $0.8 million compared to net
income of $6.3 million in the 2007 first quarter. The 2008 first quarter net loss included
a $1.4 million after-tax charge related to the adoption of SFAS 157. See Note 13 to the
Condensed Consolidated Financial Statements Fair Value Measurements for
additional detail.

-18-

---

# Financial Condition

# Working Capital

The
Companys working capital was $213.6 million at March 31, 2008 as compared to $207.6
million at December 31, 2007 and $220.0 million at March 31, 2007. The change in working
capital at March 31, 2008 from December 31, 2007 was primarily due to increases in
inventory, as well as the current portion of retained interest from the sale of finance
contracts. These increases in working capital were partially offset by a decrease in
accounts receivable. The increase in inventory as of March 31, 2008 is due to the timing
of customer demand as well as the launch of a new articulated loader product line in 2008.
The current portion of retained interest in sold finance contracts increased from December
31, 2007 primarily due to a decreased advance rate within the securitization facility.
Accounts receivable decreased from December 31, 2007 due to planned field inventory
reductions during the 2008 first quarter.

The
change in working capital at March 31, 2008 from March 31, 2007 was primarily due to
increases short-term debt obligations and decreases in accounts receivable. The increase
in short-term debt and decrease in accounts receivable were partially offset by an
increase in inventory and the current portion of retained interest from the sale of
finance contracts. The increase in inventory as of March 31, 2008 was due to the timing of
customer demand as well as the launch of a new product line in 2008. The current portion
of retained interest from the sale of finance contracts increased from March 31, 2007 due
to a decreased advance rate on the securitization facility. Accounts receivable decreased
from March 31, 2007 due to planned field inventory reductions during the 2008 first
quarter. Short-term debt obligations increased from March 31, 2007 as the Company extended
its commercial paper facility from $25.0 million to $50.0 million in April 2007. See
Debt and Equity below for additional discussion.

# Capital Expenditures

Capital
expenditures for property, plant and equipment during the 2008 first quarter were
approximately $1.4 million. The Company plans to make up to $22.1 million of capital
expenditures in 2008, primarily to complete the research and development facility, break
ground on the new corporate office building, enhance manufacturing and information
technology capabilities and maintain and upgrade machinery and equipment.

# Debt and Equity

The
Company maintains a $125 million unsecured 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 October 17, 2011. At any time during
the term of the Facility, the Company has the option, subject to bank approval, 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. Under the terms of the Facility, the Company has pledged the capital stock of
certain wholly-owned subsidiaries which are all co-borrowers. 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 0.625% to 1.3750% or (2) a base
rate defined as the prime commercial rate less 0.125% to 1.125%. 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 0.625% to 1.375%. As of March 31, 2008, the weighted
average interest rate on Company borrowings outstanding under the Facility was 6.16%. 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 March 31, 2008.

-19-

---

Borrowings
under the Facility were $23.6 million at March 31, 2008 as compared to $21.1 million at
December 31, 2007 and $38.9 million at March 31, 2007. Available unused borrowings under
the Facility were $51.4 million at March 31, 2008 as compared to $53.9 million at December
31, 2007 and $61.1 million at March 31, 2007. Available borrowings at March 31, 2008 were
reduced by $50.0 million of outstanding commercial paper, as compared to $50.0 million and
$25.0 million at December 31, 2007 and March 31, 2007, respectively.

During
the fourth quarter of 2006, the Company began to issue commercial paper through a
placement agent to fund a portion of its short term working capital needs. The Company had
the ability to sell up to $25.0 million in commercial paper under this arrangement. In
April 2007, this arrangement was expanded to give the Company the ability to sell up to
$50.0 million in commercial paper. The Companys commercial paper program is backed
by the credit commitment under the Companys revolving credit facility. At March 31,
2008, the Company had $50.0 million of short term commercial paper outstanding at a rate
of 3.45%, compared to $50.0 million outstanding at December 31, 2007 at a rate of 5.07%
and $25.0 million outstanding at March 31, 2007 at a rate of 5.45%

In
addition, the Company has access to a 2.5 million committed foreign short-term
credit facility. There were no borrowings outstanding under this facility at March 31,
2008 and 2007.

The
Company believes it has adequate capital resources and borrowing capacity to meet its
projected capital requirements for the foreseeable future. Requirements for working
capital, capital expenditures, pension fund contributions and debt maturities in fiscal
2008 will continue to be funded by operations and the Companys borrowing
arrangements.

At
March 31, 2008, shareholders equity had increased $23.9 million to $261.0 million
from $237.1 million at March 31, 2007. This increase primarily reflects net income of
$17.3 million. Shareholders equity at March 31, 2008 was flat compared to December
31, 2007.

On
October 26, 2007, the Companys Board of Directors authorized a stock repurchase plan
providing for the repurchase of up to 1,000,000 shares of the Companys outstanding
common stock in open market or privately negotiated transactions. All treasury stock
acquired by the Company will be cancelled and returned to the status of authorized but
unissued shares. The plan does not have an expiration date. As of March 31, 2008 and
December 31, 2007, a total of 153,600 shares and 123,600 shares had been repurchased,
respectively.

# Contractual Obligations

Other
than the changes in the outstanding borrowings and capital commitments, as described
above, and Financial Accounting Standards Board Interpretation No. 48 liabilities, as
described in Note 3 to the Condensed Consolidated Financial Statements, 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 Financial Condition and Results of Operations
and Notes 8 and 15, respectively, of Notes to Consolidated Financial Statements in the
Companys Annual Report on Form 10-K for the year ended December 31, 2007 as filed
with the Securities and Exchange Commission.

-20-

---

# Off-Balance Sheet
Arrangements  Sales of Finance Contracts Receivable

The
sale of finance contracts is an important component of the Companys overall
liquidity. The Company maintains an asset securitization facility (the
Securitization Facility) with a financial institution (the Purchaser)
whereby the Company can sell, through a revolving securitization facility, retail and
fleet installment sale contracts (installment sale contracts or finance
contracts receivable). On March 31, 2008, the Securitization Facility was amended to
adjust the total facility size from $300 million to $200 million.
The reduction in the facility size coincided with a change to the agreement to allow the
Company to sell contracts through other arrangements including limited recourse
arrangements at the Companys discretion. The amendment also resolved all previous
exceptions that resulted in the reservation of rights agreement in operation at December
31, 2007. At March 31, 2008, the Company was in compliance with all facility requirements.
The Securitization Facility has a final maturity date in July 2009, subject to annual
renewal by the Purchaser. Under the Securitization Facility, 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 of the SPE. The wholly-owned
bankruptcy-remote special purpose subsidiary of the SPE sells a participating interest in
each such portfolio of finance contracts receivable to the Purchaser (approximately 85% of
the discounted value of the finance contract receivable portfolio). 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 March 31, 2008, the Company
had available unused capacity of $6.8 million under the Securitization Facility compared
to $99.3 million at March 31, 2007.

In
addition to the Securitization Facility, the Company has arrangements with multiple
financial institutions to sell its finance contracts receivable with 5% limited recourse
on the sold portfolio of retail finance contracts. The Company continues to service
substantially all contracts, whether or not sold. At March 31, 2008, the Company serviced
$355.9 million of finance contracts receivable of which $271.8 million, $59.6 million and
$6.3 million were sold through the Securitization Facility, limited recourse arrangements
and full recourse arrangements, respectively. At March 31, 2007, the Company serviced
$374.2 million of finance contracts receivable of which $248.3 million, $80.1 million and
$24.8 million were sold through the Securitization Facility, limited recourse arrangements
and full recourse arrangements, respectively. It is the intention of the Company to
continue to sell substantially all of its existing as well as future finance contracts
through an asset securitization program or limited recourse arrangements. The Company
believes that it will be able to arrange sufficient capacity to sell its finance contracts
for the foreseeable future.

-21-

---

# Critical Accounting
Policies and Estimates

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, 2007 as
filed with the Securities and Exchange Commission.

# Forward-Looking
Statements

Gehl
Company (the Company or Gehl) intends that certain matters
discussed 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 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, those risk factors cited
in the Companys filings with the Securities and Exchange Commission, any adverse
change in general economic conditions, unanticipated changes in capital market conditions,
the Companys ability to implement successfully its strategic initiatives (including
cost reduction initiatives), market acceptance of newly introduced products, unexpected
issues related to the pricing and availability of raw materials (including steel and
rubber) and component parts, unanticipated difficulties in securing product from third
party manufacturing sources, the ability of the Company to increase its prices to reflect
higher prices for raw materials and component parts, the cyclical nature of the
Companys business, the Companys and its customers access to credit,
competitive pricing, product initiatives and other actions taken by competitors,
disruptions in production capacity, excess inventory levels, the effect of changes in laws
and regulations (including government subsidies and international trade regulations),
technological difficulties, changes in currency exchange rates or interest rates, the
Companys ability to secure sources of liquidity necessary to fund its operations,
changes in environmental laws, the impact of any strategic 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 the future 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.

# 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, 2007 as
filed with the Securities and Exchange Commission.

-22-

---

# 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 March 31, 2008. 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
March 31, 2008.

# 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 Exchange Act) that occurred
during the three months ended March 31, 2008, that has materially affected, or is
reasonably likely to materially affect, the Companys internal control over financial
reporting.

-23-

---

# PART II  Other
Information

# Item 1A. Risk Factors

There
has not been any material change in the risk factors previously disclosed in the
Companys 2007 Form 10-K for the fiscal year ended December 31, 2007.

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

On
October 26, 2007, the Companys Board of Directors authorized a stock repurchase plan
providing for the repurchase of up to 1,000,000 shares of the Companys outstanding
common stock in open market or privately negotiated transactions. All treasury stock
acquired by the Company will be cancelled and returned to the status of authorized but
unissued shares. The plan does not have an expiration date. As of March 31, 2008 and
December 31, 2007, a total of 153,600 shares and 123,600 shares had been repurchased,
respectively. The table below sets forth information with respect to purchases made by or
on behalf of the Company of shares of our common stock during the three months ended March
31, 2008:

|As of March 31, 2008 | Total Number of
Shares Purchased | Average
Price Paid
per Share | Total Number of
Shares Purchased
as Part of a
Publicly
Announced Plan | Maximum Number of
Shares that May Yet
Be Purchased Under
the Plan
|-------------------- | -------------------------------- | ---------------------------- | --------------------------------------------------------------------- | -----------------------------------------------------------------
|January              | 30,000                           | $    16.40                   | 30,000                                                                | 846,400                                                          
|February - March     | --                               | --                           | --                                                                    | 846,400                                                          
|                    
|Total                | 30,000                           | $    16.40                   | 30,000                                                                | 846,400                                                          
|                    

# Item 6. Exhibits

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

| | 10.1+ | Waiver
and  Amendment  No. 5 to  Receivables  Purchase  Agreement,  dated March 31,
                       2008,  among the Company,  Gehl Funding II, LLC, Park Avenue
 Receivables  Company,                        LLC and JPMorgan Chase Bank, N.A.
| | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.2 | Amendment
No. 1 to  Receivables  Sale  Agreement,  dated March 31, 2008 between the
                       Company and Gehl Receivables II, LLC.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 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 Operating 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 Operating Officer
pursuant to section 906 of the Sarbanes-Oxley Act of 2002.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | + | Portions
of this exhibit have been redacted and are subject to a confidential treatment request
filed with the Secretary of the Securities and Exchange Commission pursuant to Rule 24b-2
under the Securities Exchange Act of 1934, as amended. The redacted material was filed
separately with the Securities and Exchange Commission.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-24-

---

# SIGNATURES

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

|                   | GEHL COMPANY                 
|------------------ | -----------------------------
|Date:  May 8, 2008 | By:  /s/ William D. Gehl     
|                   | William D. Gehl              
|                   | Chairman of the Board        
|                   | and Chief Executive Officer  
|Date:  May 8, 2008 | By:  /s/ Malcolm F. Moore    
|                   | Malcolm F. Moore             
|                   | President and                
|                   | Chief Operating Officer      
|                   | (Principal Financial Officer)

-25-

---

# GEHL COMPANYINDEX TO
EXHIBITS

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

| | 10.1+ | Waiver
and Amendment No. 5 to Receivables Purchase Agreement,  dated March
                                31,  2008,   among  the  Company,   Gehl  Funding  II,
 LLC,  Park  Avenue                                 Receivables Company, LLC and JPMorgan
Chase Bank, N.A.
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 10.2 | Amendment
 No. 1 to  Receivables  Sale  Agreement,  dated  March 31,  2008
                                between the Company and Gehl Receivables II, LLC.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | + | Portions
of this exhibit have been redacted and are subject to a confidential treatment request
filed with the Secretary of the Securities and Exchange Commission pursuant to Rule 24b-2
under the Securities Exchange Act of 1934, as amended. The redacted material was filed
separately with the Securities and Exchange Commission.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-26-