Equipment Type

Oshkosh First Quarter Net Sales up 31 Percent

Access equipment sales up 28.4 percent; Defense up 67.6

January 29, 2018
Oshkosh access equipment sales increased 28.4 percent

Oshkosh Corporation reports its 2018 first quarter net income was $56.4 million, compared to $19.2 million in the first quarter of fiscal 2017.

Consolidated net sales in the first quarter of fiscal 2018 were $1.59 billion, an increase of 30.9 percent compared to the first quarter of fiscal 2017. The Company reported double-digit percentage sales growth in the defense, access equipment and commercial segments.

Consolidated operating income increased 103.9 percent to $73.8 million, or 4.7 percent of sales, in the first quarter of fiscal 2018 compared to $36.2 million, or 3.0 percent of sales, in the first quarter of fiscal 2017.

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

Access Equipment – Access equipment segment net sales increased 28.4 percent to $628.2 million in the first quarter of fiscal 2018. The increase in sales was due to improved demand for both aerial work platforms and telehandlers.

Defense – Defense segment net sales for the first quarter of fiscal 2018 increased 67.6 percent to $493.5 million. The increase in sales was due to the ramp up of sales to the U.S. government under the Joint Light Tactical Vehicle (JLTV) program and international Mine Resistant Ambush Protected-All Terrain Vehicle (M-ATV) sales.

Fire & Emergency – Fire & emergency segment net sales for the first quarter of fiscal 2018 decreased 1.5 percent to $229.1 million. The decrease in sales was due to lower airport products international volume, largely offset by higher fire apparatus sales.

Commercial – Commercial segment net sales increased 21.2 percent to $241.4 million in the first quarter of fiscal 2018. The increase in sales was primarily due to higher concrete placement and refuse collection vehicle unit volume. Fiscal 2017 first quarter sales were negatively impacted by an atypical order pattern.

Corporate – Corporate operating costs increased $5.0 million in the first quarter of fiscal 2018 to $38.6 million due primarily to higher new product development spending, increased share-based compensation expense and the timing of costs.

Fiscal 2018 Expectations

As a result of the positive start to the fiscal year, improved demand outlook for access equipment and the impact of tax reform, the Oshkosh is raising its fiscal 2018 full year outlook. The Company now expects consolidated sales to be $7.1 billion to $7.3 billion, an increase of $200 million from the Company’s previous sales estimate range of $6.9 billion to $7.1 billion.

The Company now expects its fiscal 2018 consolidated operating income to be $520 million to $570 million. Excluding anticipated charges and operating inefficiencies for announced restructuring actions in the access equipment and commercial segments, the Company expects its fiscal 2018 adjusted1 operating income to be $550 million to $600 million, compared to its previous estimated adjusted operating income range of $515 million to $565 million.

“I am pleased to report a positive start to fiscal 2018, with results that exceeded our expectations,” said Wilson R. Jones, president and chief executive officer of Oshkosh Corporation. “Strong orders in the quarter and strong backlogs exiting the quarter reflect the broader positive macroeconomic environment driving favorable conditions in many of our markets.

“I am proud of the hard work and dedication of our Oshkosh team members that delivered these solid results. Sales grew in three of our four segments, and all four segments reported higher adjusted operating income. We continue to identify opportunities to improve our execution and remain focused on delivering strong performance and shareholder value.

“As a result of our positive start to the year, solid outlook and lower tax rate as a result of tax reform in the U.S., we are increasing our full year expectations for earnings per share and adjusted1 earnings per share. We now expect full year earnings per share to be in a range of $4.75 to $5.20 and adjusted1 earnings per share to be in a range of $5.00 to $5.45,” said Jones.

Click here for the entire Oshkosh Fiscal 2018 First Quarter Results

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