Equipment Type

Oshkosh Income Up in 1Q 2014

Oshkosh Corp. reported a fiscal 2014 first quarter net income of  $54.9 million, compared to $46.3 million in the first quarter of fiscal 2013. 

January 28, 2014

Oshkosh Corp. reported a fiscal 2014 first quarter net income of  $54.9 million, compared to $46.3 million in the first quarter of fiscal 2013. 

Consolidated net sales in the first quarter of fiscal 2014 were $1.53 billion, a decrease of 12.6 percent compared to the prior year first quarter. Higher sales in each of the company’s non-defense segments were more than offset by lower defense segment sales.

Consolidated operating income in the first quarter of fiscal 2014 was $96.5 million, or 6.3 percent of sales, compared to $80.3 million, or 4.6 percent of sales, in the first quarter of fiscal 2013.

“First quarter results significantly exceeded our expectations driven by a combination of disciplined execution and a strong product mix,” said Charles L. Szews, Oshkosh CEO. “The benefits of our MOVE strategy were evident in our performance again this quarter. We believe MOVE is an effective roadmap to lead Oshkosh to achieve our strategic targets.

Factors affecting first quarter results for the company’s business segments included:

Access Equipment – Access equipment segment sales increased 15 percent to $668.6 million for the first quarter of fiscal 2014 compared to the prior year first quarter. Access equipment segment operating income increased 84.6 percent to $90.3 million, or 13.5 percent of sales, compared to prior year first quarter operating income of $48.9 million, or 8.4 percent of sales.

Fire & Emergency – Fire & emergency segment sales for the first quarter of fiscal 2014 increased 8.7 percent to $198 million compared to the first quarter of fiscal 2013. Fire & emergency segment operating income increased 28.5 percent to $6.9 million, or 3.5 percent of sales, compared to prior year first quarter operating income of $5.4 million, or 2.9 percent of sales.

Commercial – Commercial segment sales increased 8.6 percent to $192.6 million in the first quarter of fiscal 2014 compared to the first quarter of fiscal 2013. The increase in sales was primarily attributable to improved aftermarket parts & service sales and higher concrete placement volume. Commercial segment operating income increased 27.7 percent to $10.2 million, or 5.3 percent of sales, compared to $8.0 million, or 4.5 percent of sales, in the first quarter of fiscal 2013. The increase in operating income was primarily a result of the higher sales volume.

Defense – Defense segment sales decreased 41.9 percent to $481.3 million for the first quarter of fiscal 2014 compared to the first quarter of fiscal 2013. In the first quarter of fiscal 2014, defense segment operating income decreased 59.3 percent to $24.8 million, or 5.2 percent of sales, compared to prior year first quarter operating income of $60.9 million, or 7.4 percent of sales.

The company expects consolidated sales for fiscal 2014 will be approximately $6.65 billion to $6.85 billion, reflecting an increase of $50 million on the low end of the range and a decrease of $50 million on the high end of the range compared to the company’s previous expectations. The company expects consolidated operating income to be between $490 million and $520 million. This reflects an increase of $30 million to $35 million from the company’s previous operating income expectations, largely as a result of expected stronger performance in the access equipment segment. The company now expects its full-year effective tax rate to be 32 percent.

 
 

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