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 September 28, 1996

                                     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 September 28, 1996
Common Stock, $.10 Par Value                          6,152,788

<PAGE>
                                GEHL COMPANY

                                  FORM 10-Q

                              September 28, 1996

                                REPORT INDEX


                                                                 Page No. 
PART I. - FINANCIAL INFORMATION:

     Condensed Consolidated Statements of Income for the 
       Three- and Nine-Month Periods Ended September 28, 1996
       and September 30, 1995 . . . . . . . . . . . . . .              3
 
     Condensed Consolidated Balance Sheets at September 28, 1996,
       December 31, 1995, and September 30, 1995  . . . .              4  

     Condensed Consolidated Statements of Cash Flows for the
       Nine-Month Periods Ended  September 28, 1996 and      
       September 30, 1995 . . . . . . . . . . . . . . . .              5 

     Notes to Condensed Consolidated Financial Statements              6 

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


PART II. - OTHER INFORMATION:       
                               
     Item 6.  Exhibits and Reports on Form 8-K  . . . . .             12     

SIGNATURES  .                                                         13   

<PAGE>

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

<CAPTION>                                                             
                                Three Months Ended         Nine Months Ended 
                                                        
                               Sept. 28,    Sept. 30,  Sept. 28,   Sept. 30, 
                                 1996          1995       1996        1995   

 <S>                           <C>          <C>        <C>         <C>
 NET SALES                     $    40,550  $  36,901  $ 124,189   $ 117,899 

   Cost of goods sold               28,298     26,175     87,569      83,796 
                                   -------   --------   --------    -------- 

 GROSS PROFIT                       12,252     10,726     36,620      34,103
   Selling, general and
    administrative expenses          7,726      7,346     24,367      22,805
                                   -------    --------   -------     --------
                                                                             
 INCOME FROM OPERATIONS              4,526      3,380     12,253      11,298 

   Interest expense                   (827)    (1,404)    (2,924)     (4,592)
   Interest income                     385        462      1,193       1,409 
   Other expense, net                 (587)      (177)    (1,048)       (393)
                                    -------    -------    -------     -------

 INCOME BEFORE INCOME TAXES          3,497      2,261      9,474       7,722 
   Income tax provision                876         25      2,024          75 
                                    -------    -------    -------    ------- 

 NET INCOME                      $   2,621     $2,236   $  7,450    $  7,647
                                  =========   ========    =======    =======

 EARNINGS PER SHARE                   $.42       $.36      $1.20      $ 1.22  
</TABLE>
      
   The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
                        GEHL COMPANY AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                               (in thousands)
<CAPTION>

                                     September 28,  December 31, September 30,
                                         1996           1995           1995     
 ASSETS                               (Unaudited)                 (Unaudited)
  <S>                                  <C>           <C>          <C>
  Cash                                 $     5,205   $    3,266   $     4,439 
  Accounts receivable-net                   65,995       69,087        72,138 
  Finance contracts receivable-net           5,887        4,817         4,711 
  Inventories                               16,238       23,320        22,631 
  Prepaid expenses and other assets          1,184        1,676         3,853 
                                            -------     -------       -------
   Total Current Assets                     94,509      102,166       107,772 
                                            -------     --------     -------- 
                                                                                
  Property, plant and equipment-net         20,642       20,315        19,979 
  Finance contracts receivable-net,           
   non-current                               3,579        2,899         2,879
  Other assets                               8,755        8,118         5,343 
                                           --------    --------       -------
 TOTAL ASSETS                           $  127,485    $ 133,498    $  135,973 
                                           ========    ========      ========

 LIABILITIES AND SHAREHOLDERS'
 EQUITY
  Current portion of long-term debt    $       174    $     197    $      210 
   obligations
  Accounts payable                          14,571       14,083        13,890 
  Accrued liabilities                       18,300       15,281        14,836 
                                            -------     -------       -------
   Total Current Liabilities                33,045       29,561        28,936 
                                            -------     -------       -------

  Line of credit facility                   21,333       37,848        42,464 
  Long-term debt obligations                 8,786        8,818         8,851 
  Other long-term liabilities                1,666        1,592         1,424 
                                            -------     -------       -------
    Total Long-Term Liabilities             31,785       48,258        52,739 
                                            -------     -------       -------
  Common stock, $.10 par value
   25,000,000 shares authorized,
   6,152,788, 6,216,765 and 6,210,767
   shares outstanding, respectively            615          622           621 
  Preferred stock, $.10 par value,
   2,000,000 shares authorized, no
   shares issued                                 -            -             - 
  Capital in excess of par                  26,113       26,580        26,497 
  Retained earnings                         35,927       28,477        27,180 
                                            -------     -------       -------

   Total Shareholders' Equity               62,655       55,679        54,298 
                                           -------      -------       -------

 TOTAL LIABILITIES AND                    $127,485    $ 133,498     $ 135,973 
 SHAREHOLDERS' EQUITY                     =========    ========      ========
</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>
                                                       Nine Months Ended      
                                                                
                                                 September 28,  September 30,
                                                    1996              1995   

 CASH FLOWS FROM OPERATING ACTIVITIES:
  <S>                                            <C>             <C>
  Net Income                                     $      7,450    $      7,647 
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation and amortization                        2,017           2,125 
   Increase in finance contracts receivable           (30,053)        (24,957)
   Proceeds from sales of finance contracts            26,830          22,241 
   Cost of sales of finance contracts                     973             418 
   Net changes in remaining working capital            12,952          (1,836)
    items
   Other                                                    -             137
                                                       -------        -------
    Net cash provided by operating activities          20,169           5,775 
                                                       -------        -------

 CASH FLOWS FROM INVESTING ACTIVITIES:
  Property, plant and equipment additions, net         (2,239)         (1,443)
  Other assets                                            520             571 
                                                       -------        -------
    Net cash used for investing activities             (1,719)           (872)
                                                       -------        -------

 CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase in long-term debt obligations                  533              60 
  Increase in long-term liabilities                       (55)             90 
  Repayments of credit facility                       (16,515)         (3,415)
  Treasury stock repurchases                             (535)              - 
  Proceeds from issuance of common stock                   61             231 
                                                       -------        -------
    Net cash used for financing activities            (16,511)         (3,034)
                                                      --------        -------

  Net increase in cash                                  1,939           1,869 
  Cash, beginning of period                             3,266           2,570 
                                                       -------        -------

  Cash, end of period                            $      5,205    $      4,439 
                                                      ========        =======

 Supplemental disclosure of cash flow
 information: 
  Cash paid for the following:
   Interest                                      $      2,920    $      4,583 
   Income Taxes                                  $      1,810    $      2,326 
</TABLE>

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

<PAGE>
                        GEHL COMPANY AND SUBSIDIARIES
            NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             September 28, 1996
                                 (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 nine  month periods ended  September 28,  1996 and  September 30,
1995  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
nine months ended September 28,  1996 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,
1995 as filed with the Securities and Exchange Commission.

NOTE 2 - EARNINGS PER SHARE

         Earnings  per share  is  computed  by dividing  net income  by  the
weighted  average number  of common stock  and, if  applicable, common stock
equivalents  which  would arise  from  the  exercise  of  stock options  and
warrants.  The  weighted average number of  shares used in the  computations
was 6,221,449  and 6,298,163 for  the three months ended  September 28, 1996
and September  30, 1995, respectively, and  6,217,549 and  6,252,373 for the
nine months ended September 28, 1996 and September 30, 1995, respectively. 

NOTE 3 - INCOME TAXES

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

NOTE 4 - INVENTORIES

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

                         September 28,   December 31,   September 30,
                              1996           1995           1995

 Raw materials and       $   3,683       $  4,151      $   3,711
 supplies
 Work-in process             8,152          9,893          8,527
 Finished machines          23,276         28,149         27,250
 and parts                  ------         ------         ------

 Total current cost         35,111         42,193         39,488
 value
 Adjustment to LIFO        (18,873)       (18,873)       (16,857)
 basis                     -------         ------         ------

                         $  16,238      $  23,320      $  22,631
                           =======         ======         ======

<PAGE>
MANAGEMENT'S DISCUSSION AND  ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION

Results of Operations

Three  Months  Ended September  28,  1996  Compared  to  Three Months  Ended
September 30, 1995

  Net sales for  the third quarter of 1996 of $40.6 million  were 10% higher
than   the  $36.9  million   in  the  comparable  period   of  1995.    Gehl
Construction's net  sales increased 9% to $18.5 million in the third quarter
of  1996 from  $17.0  million in  the  third quarter  of  1995.   The  Gehl
Construction  increase resulted from  continued strong demand for skid steer
loaders  and rough-terrain  telescopic forklifts.   Gehl  Agriculture's  net
sales increased  11% to  $22.1 million  in the  third quarter  of 1996  from
$19.9 million in the third  quarter of 1995.  The increase was primarily the
result of higher shipment levels  of forage harvesting and haytool equipment
in the third quarter  of 1996  than in the comparable  period of 1995.   The
Company  believes that the higher shipment levels were,  in part, the result
of the impact of near record high milk prices being earned by  the Company's
dairy farm customers.

   Gross profit increased $1.5  million, or 14%, during the third quarter of
1996 versus the comparable period of  1995, due primarily to increased sales
volume.  Gross profit  as a percent of net  sales increased to 30.2% for the
third quarter of 1996 from  29.1% in the  comparable period of 1995.   Gross
profit as a  percent of net sales for  Gehl Construction increased  to 32.1%
in the  third  quarter of  1996 from  32.0% in  the third  quarter of  1995.
Gross profit  as a percent  of net sales for  Gehl Agriculture increased  to
28.6% in the  third quarter of 1996 from  26.6% in the comparable period  of
1995.   The  primary reasons  for the  percentage improvement  were: 1)  the
impact of a change  in the mix  of products shipped in the third  quarter of
1996 versus products shipped in  comparable 1995; 2) export sales, typically
made  at a  lower gross  margin  than domestic  sales, constituting  a lower
portion of  third quarter sales  in 1996 than in 1995; and  3) the impact of
favorable material  purchase prices, especially  steel, in the third quarter
of 1996.

   Selling, general and  administrative expenses increased $380,000, or  5%,
during the  third quarter of 1996 versus the comparable period  of 1995.  As
a percent of  sales, selling, general  and administrative expenses decreased
to  19.1% during the third  quarter of 1996  versus 19.9%  in the comparable
period of 1995.

   Income from operations  in the  third quarter  of 1996  was $4.5  million
versus $3.4  million  in  the  third quarter  of  1995.   The  increase  was
primarily due to  increased sales volume,  improved gross  margin percentage
and a decline in  selling, general and administrative expenses as a  percent
of net sales.

   Interest  expense decreased  $577,000, or 41%,  to $827,000  in the third
quarter of  1996 from  $1.4  million  in the  third quarter  of  1995.   The
decrease was a  result of a reduction  in average debt outstanding to  $38.8
million in  the third  quarter of  1996 versus  $56.7 million  in the  third
quarter of 1995, combined  with a decrease  in the average rate  of interest
paid by the Company  to 8.2% in the third quarter of 1996 versus 9.7% in the
comparable  period of 1995.   The decrease  in the  average debt outstanding
was primarily  the  result of  cash  flow  generated from  reduced  accounts
receivable and  inventory levels and increased shareholders' equity over the
past twelve months.   The interest rate decrease was  due to the impact of a
reduced interest  rate structure  negotiated by  the Company  in conjunction
with the December 1, 1995 amendment to its line of credit facility.

     Other expense,  net was $587,000  in the third  quarter of  1996 versus
$177,000 in the third  quarter of 1995.   The increase was primarily  due to
higher costs  of selling finance contracts  receivable in  the third quarter
of 1996 versus the comparable period of 1995.  The increase in the costs  of
such sales was primarily the result of selling  approximately $3.6 million 
more  contracts in  the third quarter of 1996, combined with lower weighted  
average yields on such contracts sold due to low financing rates offered to 
retail customers.

   The Company's  effective income tax rate  was 25.1% for the third quarter
of 1996.   Under generally accepted  accounting principles,  the Company was
not required to record  a federal income  tax provision related to  its 1995
third quarter  operating  income due  to  existence  of net  operating  loss
carryforwards.    The Company  has  now  utilized all  of  its  federal  net
operating loss carryforwards.

Nine  Months  Ended  September  28,  1996  Compared  to  Nine  Months  Ended
September 30, 1995

   Net sales  for the first nine months  of 1996 of $124.2 million were $6.3
million, or 5%, higher  than the $117.9 million  in the comparable period of
1995.  Gehl Construction's  net sales increased 16% to $54.9 million in  the
first  nine months of  1996 from  $47.3 million in the  first nine months of
1995.   The  Gehl Construction increase  resulted from  increased demand for
the Company's products, particularly  rough-terrain telescopic forklifts and
skid  steer loaders.   Gehl  Agriculture's net  sales decreased 2%  to $69.3
million in the first  nine months of 1996  from $70.6 million  in the  first
nine months of 1995.   The decrease was due in  part to the  introduction of
two redesigned product lines in the  first nine months of 1995 contrasted to
only one such introduction in  the first nine months of 1996.  The  decrease
was also  due in  part to approximately  $1.3 million of  shipments, in  the
first nine  months of 1995, of  products which have since been discontinued.
Partially  offsetting  the Gehl  Agricultural  shipment  reductions  was  an
increase in shipments of forage harvesters and skid steer loaders.

   Gross profit increased $2.5  million, or 7%, in  the first nine months of
1996 versus the comparable period of 1995, primarily due to increased  sales
volume.  Gross profit as a percent of  net sales increased to 29.5%  for the
first nine months of 1996 from 28.9% in the comparable  period of 1995.  The
shift  in product  mix of  sales toward  Gehl  Construction resulted  in the
overall Company increase  in gross profit as a  percent of net sales.  Gross
profit as a percent  of net sales  for Gehl Construction decreased  to 32.1%
in the  first nine months  of 1996 from  32.3% in the  first nine months  of
1995.    Gross  profit as  a  percent  of  net  sales  for Gehl  Agriculture
increased to  27.4% for the  first nine  months of 1996  from 26.6%  for the
first nine  months of 1995.   The primary reasons  for the Gehl  Agriculture
percentage  improvement were:   1)  the impact  of  a change  in the  mix of
products  shipped in the  first nine months of  1996 versus products shipped
in comparable 1995, 2) export sales, typically made at a  lower gross margin
than domestic sales,  constituting a  lower portion  of sales  in the  first
nine  months of 1996  than in 1995; and 3)  the impact of favorable material
purchase prices, especially steel, in the first nine months of 1996.

   Selling, general and  administrative expenses increased $1.6 million,  or
7%, during  the first nine  months of 1996 versus  the comparable period  of
1995.   The  increase  related  to  a  greater  investment in  research  and
development costs  and increased  selling expenses.   As  a  percent of  net
sales,  selling, general,  and administrative  expenses increased  to  19.6%
during the first nine months of 1996 versus  19.3% in the comparable  period
of 1995.

     Income from  operations in  the  first nine  months  of 1996  of  $12.3
million was 8% higher  than the $11.3  million for the comparable  period of
1995.

     Interest expense decreased  $1.7 million,  or 36%, to  $2.9 million  in
the first nine months of 1996 from $4.6  million in the first nine months of
1995.  The decrease was  a result of a reduction in average debt outstanding
to $45.9 million  in the first nine months  of 1996 versus $59.8 million  in
the comparable period of 1995, combined with a decrease in  the average rate
of interest paid by the Company to 8.3% in the first nine months of  1996 
from 10.1% in the  comparable period of  1995.  The decrease in the average
debt outstanding  was primarily the  result of  cash flow generated from  
reduced  accounts  receivables  and  inventory  levels  and  increased
shareholders'  equity  over the  past  twelve  months.    The interest  rate
decrease  was  due  to  the impact  of  a  reduced interest  rate  structure
negotiated  by  the  Company  in  conjunction  with  the  December  1,  1995
amendment to its line of credit facility.

     Other expense,  net was  $1,048,000 in  the first  nine months of  1996
versus  $393,000  in  the comparable  period  of  1995.   The  increase  was
primarily  due to  higher costs of  selling finance  contracts receivable in
the first  nine months of 1996  versus the comparable period  of 1995.   The
increase in  the costs of such sales was the result of selling approximately
$5.3 million more contracts  in the first nine months of 1996 combined  with
lower weighted average  yields on such finance  contracts sold due to  lower
financing rates offered to retail customers.

     The  Company's effective income tax  rate was 21.4%  for the first nine
months  of  1996.    Under  generally  accepted  accounting principles,  the
Company was not  required to record a  federal income tax provision  related
to the operating  income recorded in  the first  nine months of 1995  due to
the  existence  of  net  operating  loss  carryforwards.    The  Company has
utilized,  in years  prior to  1996,  substantially all  of its  federal net
operating loss  carryforwards.   In years  subsequent to  1996, the  Company
expects  to  provide  for  federal  income   taxes  at  rates  approximating
statutory rates.

Financial Condition

   The Company's  working capital was $61.5  million at  September 28, 1996,
as compared  to $72.6  million at  December 31,  1995, and $78.8  million at
September  30,  1995.    The decrease  since  September  30,  1995  was  due
primarily to a reduction in accounts receivable and inventory levels.

     The Company's cash flow  provided by operating activities in  the first
nine  months of  1996  was $20.2  million versus  $5.8  million  provided by
operations in comparable  1995.  The third  quarter 1996 cash flow  provided
by operations was $15.3 million as compared to 1995's third  quarter of $9.1
million.  The  cash flows provided by operations  for the third  quarter and
first nine  months of  1996 were  favorably impacted  by declining  accounts
receivable and inventory levels.

   Capital  expenditures for property, plant and equipment  during the first
nine  months  of   1996  were  approximately  $2.2  million.     Outstanding
commitments as  of September 28, 1996  totaled approximately  $518,000.  The
Company expects to make  approximately $4.0 million  of capital expenditures
during 1996.  The Company has announced plans to expand its two South  Dakota 
Construction plants, at  an aggregate cost  of approximately $5.2 million.   
The majority of the expansion costs will be incurred in 1997.

   As of  September 28, 1996, the weighted average interest rate paid by the
Company on  outstanding borrowings  under its  line of  credit facility  was
7.4%.  The Company had available unused borrowing capacity of $42.5  million,
$27.4 million, and $27.2 million under the line of credit facility at 
September 28, 1996,  December 31, 1995, and  September 30, 1995,respectively.
At September 28, 1996, December  31, 1995, and September  30,1995, the  
borrowings outstanding  under the  line of  credit facility  were $21.3 
million, $37.8 million, and $42.5 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  all
contracts whether or not sold.  At September 28,1996, Gehl serviced $61.1  
million of such contracts, of which $50.9 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 September 28, 1996 was $62.7 million.  This was
$8.4 million  higher  than the  $54.3  million  of shareholders'  equity  at
September  30, 1995, due  primarily to  income earned  from October  1, 1995
through September 28, 1996.

<PAGE>

                         PART II - OTHER INFORMATION

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

     (a)  Exhibits 

          Exhibit 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 September 28, 1996.

<PAGE>
                                 SIGNATURES

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

                                              GEHL COMPANY


Date:  November 1, 1996                       By:  /s/ William D. Gehl      
                                                   William D. Gehl
                                                   Chairman of the Board, 
                                                   President and Chief
                                                   Executive Officer

Date:  November 1, 1996                       By:  /s/ Kenneth P. Hahn      
                                                   Kenneth P. Hahn
                                                   Corporate Controller

<PAGE>


                                GEHL COMPANY

                                  FORM 10-Q

                             September 28, 1996

                                EXHIBIT INDEX


Exhibit
Number         Document Description                                         
                             

 
27        Financial Data Schedule [EDGAR version only]