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Oshkosh Truck: O S H K O S H C O R P O R A T I O N F O R I M M E D I A T E R E L E A S E

The following excerpt is from the company's SEC filing.

For more information, contact:

Financial:

Patrick Davidson

Vice President, Investor Relations

920.966.5939

Media:

John Daggett

Vice President, Communications

920.233.9247

OSHKOSH CORPORATION REPORTS FISCAL 2015

FOURTH QUARTER AND FULL YEAR RESULTS

Provides Fiscal 2016 EPS Estimate Range of $3.00 to $3.40

Prepared to Resume JLTV Work at Conclusion of GAO Protest Review

Repurchased 2.9 Million Shares of Common Stock in Fourth Quarter Fiscal 2015

Announces 12 Percent Increase in Quarterly Cash Dividend to $0.19 P er Share

OSHKOSH, WI (October 29, 2015)

Oshkosh Corporation (NYSE: OSK) today reported fiscal 2015 fourth quarter net income of $50.3 million, or $0.64 per diluted share, compared to $77.8 million, or $0.93 per diluted share, in the fourth quarter of fiscal 2014. Comparisons are to the corresponding period of the prior year, unless otherwise noted.

Results for the fourth quarter of fiscal 2015 were adversely impacted by a combined $2.4 million after-tax workforce reduction charge in the access equipment segment and corporate. Results for the fourth quarter of fiscal 2014 were adversely impacted by a combined $2.4 million after-tax pension curtailment and pension settlement charge in the defense segment. Excluding these items, fiscal 2015 fourth quarter adjusted(1) net income was $52.7 million, or $0.67 per diluted share, compared to $80.2 million, or $0.96 per diluted share, in the fourth quarter of fiscal 2014.

(1) This press release refers to GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. Oshkosh Corporation believes that the non-GAAP measures provide investors a useful comparison of the Companys performance to prior period results. These non-GAAP measures may not be comparable to similarly titled measures disclosed by other companies. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found under the caption Non-GAAP Financial Measures in this press release.

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Oshkosh Corporation Reports Results for Fiscal 2015 Fourth Quarter

Consolidated net sales in the fourth quarter of fiscal 2015 were $1.58 billion, a decrease of 5.4 percent compared to the prior year fourth quarter. Higher sales in the defense, fire & emergency and commercial segments were not sufficient to offset a decline in access equipment segment sales resulting from lower demand in North America. On a constant currency basis, sales decreased 3.6 percent compared to the fourth quarter of fiscal 2014.

Consolidated operating income in the fourth quarter of fiscal 2015 was $86.6 million, or 5.5 percent of sales, compared to $113.1 million, or 6.8 percent of sales, in the prior year fourth quarter. Fiscal 2015 fourth quarter adjusted(1) consolidated operating income was $89.5 million, or 5.7 percent of sales, excluding workforce reduction charges of $2.9 million. Fiscal 2014 fourth quarter adjusted(1) consolidated operating income was $116.9 million, or 7.0 percent of sales, excluding pension curtailment and pension settlement charges that netted to $3.8 million. The decline in consolidated operating income was driven by lower access equipment segment sales.

Fourth quarter earnings were in line with our revised expectations, stated Charles L. Szews, Oshkosh Corporation Chief Executive Officer. As we expected, our access equipment and concrete mixer businesses experienced soft demand in the fourth quarter, but construction activity in North America and Europe remains on the upswing which we believe will lead to stronger demand for these products in coming months.

Our Defense business is rebounding and experiencing increased interest in our expanding portfolio of tactical wheeled vehicles. More countries are engaging with Oshkosh to explore the purchase of Mine Resistant Ambush Protected All Terrain Vehicles (M-ATVs). In the fourth quarter, Oshkosh signed a contract with an international customer for 273 M-ATVs and we expect to secure a contract for more than 1,000 additional M-ATVs in our first quarter, the majority of which we expect to be sold in fiscal 2016. We continue to pursue opportunities to sell thousands of additional M-ATVs. Also, with the recent historic award of the Joint Light Tactical Vehicle contract (JLTV), our Defense business is well-positioned to serve growing global demand for protected tactical wheeled vehicles well into the next decade. We are prepared to resume work on the JLTV contract immediately following an expected favorable resolution to a competitor protest of the contract award.

Today, we announced our expectations for fiscal 2016 earnings per share of $3.00 to $3.40. This range is lower than the range implied by our comments during our third quarter earnings conference call due largely to a more cautious outlook for our access equipment and concrete mixer businesses. We believe these markets will be soft during the first half of fiscal 2016 before improving as the 2016 construction season gets underway. We also believe our defense business will strengthen as fiscal 2016 unfolds due to urgent international requirements for M-ATVs and aftermarket support, stated Szews.

We expect to generate approximately $350 million of free cash flow in fiscal 2016 as we reduce access equipment inventory, while also investing in Defense working capital to fulfill international sales contracts. We expect to utilize about half of the free cash flow for share repurchases and dividends, including the increase to our quarterly dividend rate that we are announcing today, concluded Szews.

Factors affecting fourth quarter results for the Companys business segments included:

Access Equipment

Access equipment segment sales declined 17.5 percent to $769.5 million for the fourth quarter of fiscal 2015. A slowdown in the order rate in North America was the primary driver of lower shipments in the fourth quarter and was partially offset by improved shipments in Europe. A stronger U.S. dollar also negatively impacted access

equipment segment sales by $26.2 million. On a constant currency basis, access equipment segment sales decreased 14.7 percent.

Access equipment segment operating income decreased 55.7 percent to $56.5 million, or 7.3 percent of sales, for the fourth quarter of fiscal 2015 compared to $127.4 million, or 13.7 percent of sales, in the fourth quarter of fiscal 2014. Access equipment segment results for the fourth quarter of fiscal 2015 included $2.5 million in workforce reduction charges. Excluding these costs, adjusted(1) operating income was $59.0 million, or 7.7 percent of sales, in the fourth quarter of fiscal 2015. The decrease in operating income was primarily the result of lower sales volume and weaker product mix, adverse manufacturing absorption and provisions for valuation reserves on used equipment as a result of the access equipment market slowdown, offset in part by lower incentive compensation expense.

Defense segment sales for the fourth quarter of fiscal 2015 increased 10.3 percent to $317.6 million. The increase in sales was primarily due to higher M-ATV reset sales and the sale of international M-ATVs, offset in part by lower sales of legacy heavy and medium tactical wheeled vehicles to the U.S. government.

The defense segment recorded operating income of $18.5 million, or 5.8 percent of sales, for the fourth quarter of fiscal 2015 compared to an operating loss of $2.0 million, or (0.7) percent of sales, in the fourth quarter of fiscal 2014. Defense segment results for the fourth quarter...


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