Oshkosh Corporation today reported fiscal 2016 fourth quarter net income of $61.5 million, or $0.82 per diluted share, compared to $50.3 million, or $0.64 per diluted share, in the fourth quarter of fiscal 2015.
Oshkosh Corporation reported net sales for fiscal 2016 of $6.28 billion and net income of $216.4 million. Results for fiscal 2016 were adversely impacted by a $17.5 million after-tax asset impairment and workforce reduction charge in the access equipment segment. Results for fiscal 2015 were adversely impacted by a combined $2.4 million after-tax workforce reduction charge in the access equipment segment and in corporate, after-tax costs of $9.3 million incurred in connection with the refinancing of the Company’s senior notes due 2020 and a $2.1 million after-tax other postretirement benefit curtailment gain. Excluding these items, adjusted net income for fiscal 2016 was $233.9 million compared to $239.1 million in fiscal 2015. Improved operating income results in each of the Company’s non-access equipment segments in fiscal 2016 were not sufficient to offset the impact of lower sales in the access equipment segment and higher corporate expenses, including increased start-up costs of a shared manufacturing facility and higher incentive compensation expense.
Management comment:“We finished the year on a high note with fiscal fourth quarter adjusted earnings per share of $1.05, which exceeded both our most recent estimates for the quarter and our results from the fourth quarter of fiscal 2015,” said Wilson R. Jones, president and chief executive officer of Oshkosh Corporation.
“Higher than expected sales in the access equipment segment as well as lower bid & proposal costs due to the timing of the FMTV request for proposal and favorable LIFO, warranty and benefits costs in the defense segment drove the higher than expected results for the quarter. Our improved year-over-year performance compared to the fourth quarter of fiscal 2015 was led primarily by significantly stronger results in our defense segment, including the sale of 325 international M-ATVs. We also benefited from revenue growth in our fire & emergency segment, which drives our confidence in the strength of this business as we enter fiscal 2017.
“During the quarter, we also began shipping our revolutionary new defense vehicle, the JLTV. This is just the beginning of our eight year contract to supply the U.S. Army and Marines with the world’s most capable light protected tactical wheeled vehicle. There is great interest in the JLTV from international customers as well, which further strengthens our long-term positive outlook.
“Our access equipment team delivered on the commitment to balance production as inventory was reduced to targeted levels at fiscal year end helping to drive strong free cash flow of $490 million during the year.
“It’s clear that customers with exposure to construction markets are maintaining their cautious approach to capital expenditures, but our defense and fire & emergency segments help provide a solid outlook for fiscal 2017."