Oshkosh warns of lower than expected JLG sales
By Maria Hadlow26 June 2008
The Oshkosh Corporation, owners of JLG Industries, said it expected a loss of approximately $1.22 to $1.32 per share for the quarter ending 30 June 2008. The loss will be partly the result of a one-off charge related to its European refuse vehicle business but also because of weaker performance than expected at JLG Industries in the US and Europe.
The non-cash charge of US$175 million is to reduce goodwill at its European refuse vehicle manufacturer, Geesink Norba Group, and weaker performance in other areas, notably JLG. Oshkosh said its other businesses - fire and emergency and commercial segments - had impacted on the results to a lesser extent.
Robert G Bohn, chairman and chief executive officer of Oshkosh Corp said; "Lower than expected sales in both North America and Europe driven by softness in non-residential construction and general economic weakness and rising raw material and fuel costs, have caused us to reduce our outlook for the third quarter and full fiscal year."
Oshkosh had predicted earnings of $1.40 to $1.50 per share for the third quarter and now expects the fourth quarter to also yield less than last year. A new earnings estimate will be released when the third quarter results are released.
The fiscal year for Oshkosh runs from the beginning of October to the end of September.