Sales increased 2.1 percent in 3Q 2013 compared to 3Q 2012 for Oshkosh, but net income increased 92 percent. The company cited improved pricing, cost reductions along with higher sales and margins from access equipment that includes JLG, Lull and Skytrak.
Net sales for the quarter were $2.2 billion, and net income was $148.4 million.
“Our access equipment segment, in particular, stood out with higher sales and operating income margins reaching more than 16 percent for the quarter,” said CEO Charles L. Szews. “Our defense team also delivered solid results, despite continued headwinds from reduced U.S. defense spending.”
Sales increased 15.6 percent to $941.5 million for the third quarter. The increase was principally the result of higher replacement-driven demand in North America, the realization of previously announced price increases, and higher aftermarket parts & service sales, which more than offset lower sales volume in Australia.
Operating income increased 75.1 percent to $154.5 million, or 16.4 percent of sales. The increase in operating income was primarily the result of higher sales volume, the realization of previously announced price increases, as well as product and process cost reductions.
Sales increased 10.5 percent to $194.7 million. The increase was primarily attributable to increased demand in the concrete mixer market and the sale of higher content units, including units with both chassis and bodies, offset in part by lower refuse collection vehicle volume due in part to changes in the timing of orders from one of the segment’s largest customers.
Operating income decreased 17.8 percent to $10.0 million, or 5.1 percent of sales. The decrease in operating income was primarily a result of restructuring-related costs of $2.7 million.
Sales decreased 8.2 percent to $879.6 million, primarily due to an expected decline in sales to the U.S. Department of Defense but was offset in part by higher international sales of M-ATVs.
Operating income increased 113.8 percent to $85.8 million, or 9.8 percent of sales. The increase was largely due to a favorable product mix, which included a large percentage of international sales of M-ATVs, and operational improvements, offset in part by lower sales volume.
Fire & Emergency
Sales for the third quarter of fiscal 2013 decreased 11.0 percent to $204.3 million, primarily due to lower sales volume. The third quarter of the prior year included the delivery of 44 Rapid Intervention Vehicles under a contract with the United States Air Force and the delivery of several large international orders to Hong Kong.
Operating income decreased 18.8 percent to $6.5 million, or 3.2 percent of sales, largely due the result of the lower sales volume, offset in part by the realization of previously announced price increases.
Net sales for the first nine months of fiscal 2013 were $5.94 billion, compared with $6.09 billion last year, and net income $280.6 million, compared with $161.5 million in the first nine months of the prior year.