JLG makes big contribution to Oshkosh Q2 results
By Maria Hadlow01 May 2008
The Oshkosh Corporation reported second quarter results of sales of $1.8 billion to which the JLG access and telehandler business contributed the largest sum despite a drop in the home market.
Robert G Bohn, Oshkosh Corporation chairman and chief executive officer said, "While we faced some significant challenges in several of our markets, their effects were overcome by sharply higher sales in global markets for our JLG access equipment business as well as an on-going need for defense vehicles"
Access equipment segment sales increased 14.9% to $813.1 million for the second quarter due to considerably higher exports and favorable foreign exchange rates; these were partially off set by lower sales in North America.
Export sales nearly doubled over the comparable quarter last year while sales in North America declined nearly 20%. The condition of the home market is attributed to the weak US economy and lower sales to large rental customers which are due, in part, to smaller, but more frequent orders spread out over the year.
"Strong penetration in markets outside North America with our access equipment customers bolsters our perspective as we move forward," said Mr Bohn.
Second quarter operating income increased 24.8% to $168.2 million or 9.5% of sales. The increase in sales was primarily related to strong performance in the access equipment segment and, to a lesser extent, the defense segment.
"The outlook for both our access equipment and defense segments gives us confidence in maintaining our full year EPS estimate range of $4.15 to $4.35 for fiscal 2008," said Mr Bohn.
Oshkosh's interest payments are much reduced now the borrowing incurred in connection with the acquisition of JLG in December 2006 has been repaid.
Oshkosh reported that EPS (earnings per share) have increased 19.5% to $1.47 for the first six months of fiscal year 2008 on sales of $3.3 billion and a net income of $109.9 million. This compares with EPS of $1.23 on sales of $2.7 billion and a $92.1 million net income in 2007. This year JLG was included in the company's operations for the whole six month of fiscal year 2008 as opposed to just four months in 2007.
The Oshkosh Corporation's financial year runs from October to October, second quarter results apply to the three month period ending on 31 March 2008.