Oshkosh Corporation, parent of access equipment manufacturer JLG Industries, reported a fiscal 2022 first quarter net loss of $2.1 million, or $0.03 per diluted share, compared to net income of $99.6 million, or $1.44 per diluted share, for the three months ended March 31, 2021.
Access Equipment segment sales for the first quarter of fiscal 2022 increased 19.6 percent to $883.1 million due to robust demand for access equipment in North America.
Access Equipment segment operating income in the first quarter of fiscal 2022 decreased 90.7 percent to $7.5 million, or 0.8 percent of sales, compared to $80.5 million, or 10.9 percent of sales, for the three months ended March 31, 2021.
The decrease was primarily due to higher material & logistics costs and higher manufacturing costs, largely associated with the implementation of manufacturing initiatives, offset in part by the impact of the higher sales volume and higher pricing in response to the higher input costs.
Overall Oshkosh results for the first quarter of fiscal 2022 included a charge of $18.1 million associated with foreign anti-hybrid tax legislation as a result of comments made by taxing authorities of the applicable jurisdiction during the quarter. Results for the three months ended March 31, 2021 included after-tax charges of $2.5 million associated with restructuring actions in the Access Equipment segment and $0.2 million associated with business acquisition costs in the Defense segment.
Excluding these charges, adjusted net income for the first quarter of fiscal 2022 and three months ended March 31, 2021 was $16.0 million, or $0.24 per diluted share, and $102.3 million, or $1.48 per diluted share, respectively.
Consolidated sales in the first quarter of fiscal 2022 increased 3.0 percent to $1.95 billion largely as a result of improved pricing and increased product content. Sales volume was relatively flat as increased shipments for access equipment in North America was offset by lower sales volumes in the Defense, Fire & Emergency and Commercial segments.
Consolidated operating income in the first quarter of fiscal 2022 decreased 79.2 percent to $29.3 million, or 1.5 percent of sales, compared to $140.8 million, or 7.5 percent of sales, for the three months ended March 31, 2021. The decrease was primarily due to higher material & logistics costs and higher manufacturing costs, due in part to parts shortages and labor challenges, offset in part by improved pricing and improved mix.
“I am proud of the efforts of Oshkosh team members who worked hard and demonstrated great resolve to overcome very challenging conditions in our first quarter,” said John C. Pfeifer, Oshkosh Corporation president and CEO. “Commodity prices showed steady improvement in the first half of the quarter, but significantly reversed course following the Russian invasion of Ukraine as steel and aluminum costs as well as freight costs increased rapidly. Additionally, we continued to experience supply chain disruptions and elevated workforce turnover that remain macro issues affecting many industries. Despite these headwinds, we were able to achieve adjusted earnings per share of $0.24, which exceeded our expectations. In response to the further cost inflation we are facing, we implemented additional surcharges in our Access Equipment and Commercial segments as well as pricing actions in the Fire & Emergency segment. Looking ahead, we are encouraged by the extremely strong demand and high order rates across our business segments, as evidenced by an all-time record backlog of over $12 billion at quarter end.
“During the quarter, we were pleased to receive our first order from the U.S. Postal Service for its new Next Generation Delivery Vehicle (NGDV), which will transform the USPS’s fleet of aged delivery vehicles with our safety-enhancing, cutting edge NGDVs," Pfeifer said. "The $3 billion order for 50,000 vehicles includes requirements for more than 10,000 battery electric vehicles. We look forward to delivering the initial production units to our customer in the back half of 2023.
“We also announced the acquisition of CartSeeker, an autonomous technology that utilizes artificial intelligence-based recognition systems to enhance refuse collection services. We are planning to display this innovative technology at the Waste Expo show in Las Vegas in May," Pfeifer said.
“As a result of inflation, increased commodity and freight costs and supply chain disruptions intensified by recent Covid lockdowns in China, we are lowering our fiscal 2022 outlook for earnings per share to a range of $4.75 to $5.75 or adjusted earnings per share of $5.00 to $6.00," Pfeifer said. "We remain confident in our ability to grow revenues and earnings as we navigate these headwinds and deliver on the orders in our significant backlog."
Source: Oshkosh
