Reaffirms Fiscal 2015 Adjusted1
EPS Estimate Range of $4.00 to $4.25
Delivers Higher Sales and Operating Income in All non-Defense
Segments
Declares Quarterly Cash Dividend of $0.17 per share
OSHKOSH, Wis.--(BUSINESS WIRE)--
Oshkosh Corporation (NYSE: OSK) today reported fiscal 2015 second
quarter net income of $54.6 million, or $0.69 per diluted share,
compared to $71.5 million, or $0.83 per diluted share, in the second
quarter of fiscal 2014. Results for the second quarter of fiscal 2015
included after-tax costs of $9.3 million incurred in connection with the
refinancing of the Company’s senior notes due 2020. Excluding this item,
fiscal 2015 second quarter adjusted1 net income was
$63.9 million, or $0.81 per diluted share. Fiscal 2014 second quarter
adjusted1 net income was $69.0 million, or $0.80 per diluted
share, excluding after-tax costs of a pension curtailment of
$2.6 million related to announced workforce reductions in the Company’s
defense segment, after-tax costs of $7.0 million incurred in connection
with the refinancing of the Company’s credit agreement and senior notes
due 2017, and a $12.1 million tax benefit related to the reduction of a
net operating loss valuation reserve. Fiscal 2015 second quarter results
were negatively impacted compared to the prior year quarter by $0.05 per
share from currencies, particularly the euro and Australian dollar,
which declined against the U.S. dollar. Comparisons in this press
release are to the corresponding period of the prior year, unless
otherwise noted.
Consolidated net sales in the second quarter of fiscal 2015 were
$1.55 billion, a decrease of 7.4 percent. Significantly lower defense
segment sales, as expected, were offset in part by improved demand in
the Company’s non-defense segments. On a constant currency basis, sales
decreased 5.7 percent compared to the second quarter of fiscal 2014.
Consolidated operating income in the second quarter of fiscal 2015 was
$109.7 million, or 7.1 percent of sales, compared to $119.4 million, or
7.1 percent of sales, in the prior year second quarter. Excluding the
curtailment charge described above, adjusted1 consolidated
operating income in the second quarter of fiscal 2014 was
$123.5 million, or 7.4 percent of sales. Higher operating income in each
of the Company’s non-defense segments during the second quarter of
fiscal 2015 was not sufficient to offset the impact of lower sales in
the Company’s defense segment.
“Our team performed well in the quarter as we managed through a
previously announced break in production under the Family of Heavy
Tactical Vehicle (FHTV) program in our defense segment, foreign currency
headwinds and severe weather conditions in the Northeast U.S. to deliver
adjusted earnings per share in line with our expectations and slightly
above the prior year quarter adjusted earnings per share,” said Charles
L. Szews, Oshkosh Corporation chief executive officer. “Sales and
operating income were higher in each of our non-defense segments,
reflecting the continued recovery of those markets and the execution of
our MOVE strategy. The improved operating results in our non-defense
segments helped to mitigate much of the impact of significantly lower
defense segment sales and earnings.
“We expect to deliver strong second half results as we enter the
seasonally busy construction season, resume FHTV sales in the fourth
quarter, and continue to execute our MOVE strategy,” added Szews. “Our
solid first half performance and positive outlook for the second half of
the fiscal year give us confidence in sustaining our fiscal 2015 full
year adjusted1 earnings per share estimate range of $4.00 -
$4.25.”
Factors affecting second quarter results for the Company’s business
segments included:
Access Equipment – Access equipment segment sales increased
13.4 percent to $981.8 million for the second quarter of fiscal 2015.
The improvement was principally the result of increased sales in all
regions, except Latin America, on a constant currency basis. The effect
of the strengthening U.S. dollar negatively impacted access equipment
segment sales by $26.5 million. On a constant currency basis, sales
increased 16.4 percent.
Access equipment segment operating income increased 17.4 percent to
$136.9 million, or 13.9 percent of sales, for the second quarter of
fiscal 2015 compared to $116.6 million, or 13.5 percent of sales, in the
second quarter of fiscal 2014. The increase in operating income was
primarily the result of higher sales volume and a favorable vendor
recovery settlement, offset in part by an adverse product mix and
unfavorable currency impacts of $3.3 million.
Defense – Defense segment sales for the second quarter of fiscal
2015 decreased 67.2 percent to $158.7 million. The decrease in sales was
primarily due to expected lower sales to the U.S. Department of Defense
(DoD) stemming from the break in production under the FHTV program and
lower Family of Medium Tactical Vehicle requirements, as well as the
absence of international sales of MRAP All-Terrain Vehicles.
The defense segment recorded an operating loss of $12.0 million, or
7.5 percent of sales, for the second quarter of fiscal 2015 compared to
operating income of $34.5 million, or 7.1 percent of sales, in the
second quarter of fiscal 2014. The decrease in operating income was
largely due to the lower sales volume.
Fire & Emergency – Fire & emergency segment sales for the
second quarter of fiscal 2015 increased 30.0 percent to $202.9 million.
The increase in sales primarily reflected higher domestic and
international shipments of fire apparatus and aircraft rescue and
firefighting vehicles and a shift to higher content units. Production
delays negatively impacted sales in the second quarter of fiscal 2014.
Fire & emergency segment operating income increased 750.1 percent to
$9.0 million, or 4.4 percent of sales, for the second quarter of fiscal
2015 compared to $1.0 million, or 0.7 percent of sales, in the second
quarter of fiscal 2014. Higher sales volume was the largest contributor
to the increase in operating income.
Commercial – Commercial segment sales increased 21.2 percent to
$220.9 million in the second quarter of fiscal 2015. The increase in
sales was primarily attributable to higher concrete mixer and refuse
collection vehicle unit volume and the sale of higher content units,
including units with both chassis and bodies.
Commercial segment operating income increased 59.9 percent to
$8.6 million, or 3.9 percent of sales, for the second quarter of fiscal
2015 compared to $5.4 million, or 3.0 percent of sales, in the second
quarter of fiscal 2014. The increase in operating income was primarily a
result of higher sales volume, offset in part by investments in MOVE
initiatives.
Corporate – Corporate operating expenses decreased $5.3 million
to $32.8 million for the second quarter of fiscal 2015. The decrease in
corporate operating expenses in the second quarter of fiscal 2015 was
primarily due to lower share-based compensation expense, largely as a
result of higher variable, share-based compensation in the second
quarter of fiscal 2014 due to an increase in the Company’s share price.
Interest Expense Net of Interest Income – Interest expense net of
interest income increased $1.7 million to $28.2 million in the second
quarter of fiscal 2015. The Company incurred $14.7 million and
$11.0 million of debt extinguishment costs in connection with the
refinancing of the Company’s senior notes during the second quarter of
fiscal 2015 and senior notes and credit agreement during the second
quarter of fiscal 2014, respectively. Excluding debt extinguishment
costs, adjusted1 interest expense net of interest income
decreased $2.0 million to $13.5 million in the second quarter of fiscal
2015 largely as a result of the benefit of lower interest rates on the
senior notes refinanced in the second quarter of fiscal 2014.
Provision for Income Taxes – The Company recorded income tax
expense of $29.5 million in the second quarter of fiscal 2015, or
35.7 percent of pre-tax income. This compares to $22.9 million, or
24.6 percent of pre-tax income, in the second quarter of fiscal 2014. In
the second quarter of fiscal 2014, the Company recorded a $12.1 million
benefit due to a reduction in a valuation reserve for net operating
losses upon securing a favorable tax ruling.
Share Repurchases – Earnings per share in the second quarter of
fiscal 2015 improved $0.05 compared to the prior year second quarter as
a result of share repurchases completed during the past twelve months.
Six-month Results
The Company reported net sales for the first six months of fiscal 2015
of $2.91 billion and net income of $89.3 million, or $1.12 per share.
This compares with net sales of $3.21 billion and net income of
$126.4 million, or $1.47 per share, in the first six months of the prior
year. Consolidated net sales in the first six months of fiscal 2015
declined 9.4 percent on significantly lower defense segment sales. On a
constant currency basis, sales decreased 8.2 percent compared to the
first six months of fiscal 2014. Adjusted1 earnings for the
first six months of fiscal 2015 were $96.5 million, or $1.21 per share,
as compared to $123.9 million, or $1.44 per share, in the first six
months of fiscal 2014. Improved operating income results in each of the
Company’s non-defense segments were not sufficient to offset the impact
of lower sales in the Company’s defense segment. Adjusted operating
income for the first six months of fiscal 2015 was negatively impacted
by $4.8 million as a result of the strengthening U.S. dollar. Earnings
per share in the first six months of fiscal 2015 improved $0.09 compared
to the prior year period as a result of lower average diluted shares
outstanding. Earnings per share for the first six months of fiscal 2015
were negatively impacted by $0.06 as a result of the strengthening U.S.
dollar.
Fiscal 2015 Expectations
The Company reaffirms its fiscal 2015 adjusted1 earnings per
share estimate range of $4.00 to $4.25 on projected net sales of
$6.5 billion to $6.6 billion. The Company anticipates that third quarter
earnings per share will represent the strongest earnings quarter of
fiscal 2015 and will be higher than the third quarter of fiscal 2014.
Similar to the second quarter of fiscal 2015, the Company expects third
quarter sales and operating income in each of its non-defense segments
to be higher than the prior year quarter. The Company expects defense
segment third quarter results to be similar to the second quarter of
fiscal 2015.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash
dividend of $0.17 per share of Common Stock. The dividend will be
payable on May 28, 2015 to shareholders of record as of May 14, 2015.
Conference Call
The Company will comment on its fiscal 2015 second quarter earnings and
its full-year fiscal 2015 outlook during a conference call at 9:00 a.m.
EDT this morning. Slides for the call will be available on the Company’s
website beginning at 7:00 a.m. EDT this morning. The call will be
webcast simultaneously over the Internet. To access the webcast,
listeners can go to www.oshkoshcorporation.com
at least 15 minutes prior to the event and follow instructions for
listening to the webcast. An audio replay of the call and related
question and answer session will be available for 12 months at this
website.
Forward-Looking Statements
This press release contains statements that the Company believes to be
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact, including, without limitation, statements
regarding the Company’s future financial position, business strategy,
targets, projected sales, costs, earnings, capital expenditures, debt
levels and cash flows, and plans and objectives of management for future
operations, are forward-looking statements. When used in this press
release, words such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “should,” “project” or “plan” or the negative
thereof or variations thereon or similar terminology are generally
intended to identify forward-looking statements. These forward-looking
statements are not guarantees of future performance and are subject to
risks, uncertainties, assumptions and other factors, some of which are
beyond the Company’s control, which could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. These factors include the cyclical nature of the Company’s
access equipment, commercial and fire & emergency markets, which are
particularly impacted by the strength of U.S. and European economies;
the strength of the U.S. dollar and its impact on Company exports,
translation of foreign sales and purchased materials; the expected level
and timing of DoD and international defense customer procurement of
products and services and funding thereof; risks related to reductions
in government expenditures in light of U.S. defense budget pressures,
sequestration and an uncertain DoD tactical wheeled vehicle strategy,
including the Company’s ability to successfully manage the cost
reductions required as a result of lower customer orders in the defense
segment; the Company’s ability to win a U.S. Joint Light Tactical
Vehicle production contract award and international defense contract
awards; the Company’s ability to increase prices to raise margins or
offset higher input costs; increasing commodity and other raw material
costs, particularly in a sustained economic recovery; risks related to
facilities expansion, consolidation and alignment, including the amounts
of related costs and charges and that anticipated cost savings may not
be achieved; global economic uncertainty, which could lead to additional
impairment charges related to many of the Company’s intangible assets
and/or a slower recovery in the Company’s cyclical businesses than
Company or equity market expectations; projected adoption rates of work
at height machinery in emerging markets; risks related to the
collectability of receivables, particularly for those businesses with
exposure to construction markets; the cost of any warranty campaigns
related to the Company’s products; risks related to production or
shipment delays arising from quality or production issues; risks
associated with international operations and sales, including compliance
with the Foreign Corrupt Practices Act; the Company’s ability to comply
with complex laws and regulations applicable to U.S. government
contractors; the impact of severe weather or natural disasters that may
affect the Company, its suppliers or its customers; cybersecurity risks
and costs of defending against, mitigating and responding to a data
security breach; and risks related to the Company’s ability to
successfully execute on its strategic road map and meet its long-term
financial goals. Additional information concerning these and other
factors is contained in the Company’s filings with the Securities and
Exchange Commission, including the Form 8-K filed today. All
forward-looking statements speak only as of the date of this press
release. The Company assumes no obligation, and disclaims any
obligation, to update information contained in this press release.
Investors should be aware that the Company may not update such
information until the Company’s next quarterly earnings conference call,
if at all.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of
a broad range of access equipment, commercial, fire & emergency,
military and specialty vehicles and vehicle bodies. Oshkosh Corporation
manufactures, distributes and services products under the brands of
Oshkosh®, JLG®, Pierce®, McNeilus®,
Jerr-Dan®, Frontline™, CON-E-CO®, London®
and IMT®. Oshkosh products are valued worldwide by rental
companies, concrete placement and refuse collection businesses, fire &
emergency departments, municipal and airport services and defense
forces, where high quality, superior performance, rugged reliability and
long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.
®, TM All brand names referred to in this news release are
trademarks of Oshkosh Corporation or its subsidiary companies.
OSHKOSH CORPORATION
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,554.2
|
|
|
$
|
1,677.9
|
|
|
$
|
2,907.5
|
|
|
$
|
3,208.1
|
|
|
Cost of sales
|
|
|
1,278.4
|
|
|
|
1,386.7
|
|
|
|
2,402.0
|
|
|
|
2,661.8
|
|
|
Gross income
|
|
|
275.8
|
|
|
|
291.2
|
|
|
|
505.5
|
|
|
|
546.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
152.8
|
|
|
|
158.0
|
|
|
|
303.3
|
|
|
|
302.7
|
|
|
Amortization of purchased intangibles
|
|
|
13.3
|
|
|
|
13.8
|
|
|
|
26.8
|
|
|
|
27.7
|
|
|
Total operating expenses
|
|
|
166.1
|
|
|
|
171.8
|
|
|
|
330.1
|
|
|
|
330.4
|
|
|
Operating income
|
|
|
109.7
|
|
|
|
119.4
|
|
|
|
175.4
|
|
|
|
215.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(28.8
|
)
|
|
|
(27.0
|
)
|
|
|
(43.2
|
)
|
|
|
(43.2
|
)
|
|
Interest income
|
|
|
0.6
|
|
|
|
0.5
|
|
|
|
1.4
|
|
|
|
1.0
|
|
|
Miscellaneous, net
|
|
|
1.3
|
|
|
|
0.5
|
|
|
|
-
|
|
|
|
(1.2
|
)
|
|
Income before income taxes and equity in earnings
|
|
|
|
|
|
|
|
|
|
of unconsolidated affiliates
|
|
|
82.8
|
|
|
|
93.4
|
|
|
|
133.6
|
|
|
|
172.5
|
|
|
Provision for income taxes
|
|
|
29.5
|
|
|
|
22.9
|
|
|
|
45.7
|
|
|
|
47.6
|
|
|
Income before equity in earnings of unconsolidated
|
|
|
|
|
|
|
|
|
|
affiliates
|
|
|
53.3
|
|
|
|
70.5
|
|
|
|
87.9
|
|
|
|
124.9
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
1.3
|
|
|
|
1.0
|
|
|
|
1.4
|
|
|
|
1.5
|
|
|
Net income
|
|
$
|
54.6
|
|
|
$
|
71.5
|
|
|
$
|
89.3
|
|
|
$
|
126.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts available to common shareholders, net of tax:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
54.6
|
|
|
$
|
71.5
|
|
|
$
|
89.3
|
|
|
$
|
126.4
|
|
|
Allocated to participating securities
|
|
|
(0.1
|
)
|
|
|
(0.3
|
)
|
|
|
(0.2
|
)
|
|
|
(0.5
|
)
|
|
Net income available to common shareholders
|
|
$
|
54.5
|
|
|
$
|
71.2
|
|
|
$
|
89.1
|
|
|
$
|
125.9
|
|
|
OSHKOSH CORPORATION
|
|
EARNINGS PER SHARE
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Earnings per share attributable to common
|
|
|
|
|
|
|
|
|
|
shareholders:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.70
|
|
|
$
|
0.84
|
|
|
$
|
1.14
|
|
|
$
|
1.49
|
|
|
Diluted
|
|
|
0.69
|
|
|
|
0.83
|
|
|
|
1.12
|
|
|
|
1.47
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding
|
|
|
78,007,479
|
|
|
|
84,036,403
|
|
|
|
78,433,035
|
|
|
|
84,681,375
|
|
|
Dilutive stock options and other equity-based
|
|
|
|
|
|
|
|
|
|
compensation awards
|
|
|
1,102,424
|
|
|
|
1,679,070
|
|
|
|
1,103,796
|
|
|
|
1,591,580
|
|
|
Participating restricted stock
|
|
|
(115,163
|
)
|
|
|
(208,409
|
)
|
|
|
(112,237
|
)
|
|
|
(201,872
|
)
|
|
Diluted weighted-average shares outstanding
|
|
|
78,994,740
|
|
|
|
85,507,064
|
|
|
|
79,424,594
|
|
|
|
86,071,083
|
|
|
OSHKOSH CORPORATION
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
September 30,
|
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
53.4
|
|
|
$
|
313.8
|
|
|
Receivables, net
|
|
|
993.8
|
|
|
|
974.9
|
|
|
Inventories, net
|
|
|
1,196.5
|
|
|
|
960.9
|
|
|
Deferred income taxes, net
|
|
|
66.8
|
|
|
|
66.3
|
|
|
Prepaid income taxes
|
|
|
22.0
|
|
|
|
22.7
|
|
|
Other current assets
|
|
|
43.9
|
|
|
|
45.7
|
|
|
Total current assets
|
|
|
2,376.4
|
|
|
|
2,384.3
|
|
|
Investment in unconsolidated affiliates
|
|
|
18.2
|
|
|
|
21.1
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
Property, plant and equipment
|
|
|
1,049.4
|
|
|
|
988.3
|
|
|
Accumulated depreciation
|
|
|
(604.5
|
)
|
|
|
(582.8
|
)
|
|
Property, plant and equipment, net
|
|
|
444.9
|
|
|
|
405.5
|
|
|
Goodwill
|
|
|
993.0
|
|
|
|
1,025.5
|
|
|
Purchased intangible assets, net
|
|
|
628.5
|
|
|
|
657.9
|
|
|
Other long-term assets
|
|
|
94.9
|
|
|
|
92.4
|
|
|
Total assets
|
|
$
|
4,555.9
|
|
|
$
|
4,586.7
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Revolving credit facility and current maturities of long-term debt
|
|
$
|
33.7
|
|
|
$
|
20.0
|
|
|
Accounts payable
|
|
|
601.8
|
|
|
|
586.7
|
|
|
Customer advances
|
|
|
342.5
|
|
|
|
310.1
|
|
|
Payroll-related obligations
|
|
|
120.3
|
|
|
|
147.2
|
|
|
Accrued warranty
|
|
|
81.4
|
|
|
|
91.2
|
|
|
Other current liabilities
|
|
|
202.0
|
|
|
|
156.4
|
|
|
Total current liabilities
|
|
|
1,381.7
|
|
|
|
1,311.6
|
|
|
Long-term debt, less current maturities
|
|
|
865.0
|
|
|
|
875.0
|
|
|
Deferred income taxes, net
|
|
|
119.6
|
|
|
|
125.0
|
|
|
Other long-term liabilities
|
|
|
291.6
|
|
|
|
290.1
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Shareholders' equity
|
|
|
1,898.0
|
|
|
|
1,985.0
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
4,555.9
|
|
|
$
|
4,586.7
|
|
|
OSHKOSH CORPORATION
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
March 31,
|
|
|
|
2015
|
|
2014
|
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
89.3
|
|
|
$
|
126.4
|
|
|
Depreciation and amortization
|
|
|
64.0
|
|
|
|
63.5
|
|
|
Stock-based compensation expense
|
|
|
11.4
|
|
|
|
11.0
|
|
|
Deferred income taxes
|
|
|
(4.7
|
)
|
|
|
(22.2
|
)
|
|
Foreign currency transaction (gains) losses
|
|
|
10.7
|
|
|
|
(2.5
|
)
|
|
Other non-cash adjustments
|
|
|
7.8
|
|
|
|
6.6
|
|
|
Changes in operating assets and liabilities
|
|
|
(249.2
|
)
|
|
|
(237.1
|
)
|
|
Net cash used by operating activities
|
|
|
(70.7
|
)
|
|
|
(54.3
|
)
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
(69.8
|
)
|
|
|
(36.4
|
)
|
|
Additions to equipment held for rental
|
|
|
(15.5
|
)
|
|
|
(11.0
|
)
|
|
Contribution to rabbi trust
|
|
|
-
|
|
|
|
(1.9
|
)
|
|
Proceeds from sale of equipment held for rental
|
|
|
13.4
|
|
|
|
2.7
|
|
|
Other investing activities
|
|
|
(1.5
|
)
|
|
|
(0.4
|
)
|
|
Net cash used by investing activities
|
|
|
(73.4
|
)
|
|
|
(47.0
|
)
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Repayment of long-term debt
|
|
|
(260.0
|
)
|
|
|
(705.0
|
)
|
|
Proceeds from issuance of long-term debt
|
|
|
250.0
|
|
|
|
650.0
|
|
|
Proceeds under revolving credit facility
|
|
|
13.7
|
|
|
|
-
|
|
|
Repurchases of common stock
|
|
|
(88.1
|
)
|
|
|
(152.8
|
)
|
|
Debt issuance costs
|
|
|
(15.4
|
)
|
|
|
(18.8
|
)
|
|
Proceeds from exercise of stock options
|
|
|
3.4
|
|
|
|
33.6
|
|
|
Dividends paid
|
|
|
(26.7
|
)
|
|
|
(25.4
|
)
|
|
Excess tax benefit from stock-based compensation
|
|
|
4.1
|
|
|
|
6.5
|
|
|
Net cash used by financing activities
|
|
|
(119.0
|
)
|
|
|
(211.9
|
)
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
2.7
|
|
|
|
(0.3
|
)
|
|
Decrease in cash and cash equivalents
|
|
|
(260.4
|
)
|
|
|
(313.5
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
313.8
|
|
|
|
733.5
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
53.4
|
|
|
$
|
420.0
|
|
|
OSHKOSH CORPORATION
|
|
SEGMENT INFORMATION
|
|
(Unaudited; in millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
|
|
|
External
|
|
Inter-
|
|
Net
|
|
External
|
|
Inter-
|
|
Net
|
|
|
|
Customers
|
|
segment
|
|
Sales
|
|
Customers
|
|
segment
|
|
Sales
|
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
$
|
432.5
|
|
$
|
-
|
|
|
$
|
432.5
|
|
|
$
|
421.0
|
|
$
|
-
|
|
|
$
|
421.0
|
|
|
Telehandlers
|
|
|
379.7
|
|
|
-
|
|
|
|
379.7
|
|
|
|
299.7
|
|
|
-
|
|
|
|
299.7
|
|
|
Other
|
|
|
169.6
|
|
|
-
|
|
|
|
169.6
|
|
|
|
145.3
|
|
|
-
|
|
|
|
145.3
|
|
|
Total access equipment
|
|
|
981.8
|
|
|
-
|
|
|
|
981.8
|
|
|
|
866.0
|
|
|
-
|
|
|
|
866.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
157.6
|
|
|
1.1
|
|
|
|
158.7
|
|
|
|
484.3
|
|
|
0.1
|
|
|
|
484.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
194.6
|
|
|
8.3
|
|
|
|
202.9
|
|
|
|
146.9
|
|
|
9.2
|
|
|
|
156.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
111.0
|
|
|
-
|
|
|
|
111.0
|
|
|
|
93.7
|
|
|
-
|
|
|
|
93.7
|
|
|
Refuse collection
|
|
|
76.7
|
|
|
-
|
|
|
|
76.7
|
|
|
|
60.6
|
|
|
-
|
|
|
|
60.6
|
|
|
Other
|
|
|
32.5
|
|
|
0.7
|
|
|
|
33.2
|
|
|
|
26.4
|
|
|
1.6
|
|
|
|
28.0
|
|
|
Total commercial
|
|
|
220.2
|
|
|
0.7
|
|
|
|
220.9
|
|
|
|
180.7
|
|
|
1.6
|
|
|
|
182.3
|
|
|
Intersegment eliminations
|
|
|
-
|
|
|
(10.1
|
)
|
|
|
(10.1
|
)
|
|
|
-
|
|
|
(10.9
|
)
|
|
|
(10.9
|
)
|
|
Consolidated net sales
|
|
$
|
1,554.2
|
|
$
|
-
|
|
|
$
|
1,554.2
|
|
|
$
|
1,677.9
|
|
$
|
-
|
|
|
$
|
1,677.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
March 31, 2015
|
|
March 31, 2014
|
|
|
|
External
|
|
Inter-
|
|
Net
|
|
External
|
|
Inter-
|
|
Net
|
|
|
|
Customers
|
|
segment
|
|
Sales
|
|
Customers
|
|
segment
|
|
Sales
|
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
$
|
709.8
|
|
$
|
-
|
|
|
$
|
709.8
|
|
|
$
|
737.5
|
|
$
|
-
|
|
|
$
|
737.5
|
|
|
Telehandlers
|
|
|
670.1
|
|
|
-
|
|
|
|
670.1
|
|
|
|
517.4
|
|
|
-
|
|
|
|
517.4
|
|
|
Other
|
|
|
318.6
|
|
|
-
|
|
|
|
318.6
|
|
|
|
279.7
|
|
|
-
|
|
|
|
279.7
|
|
|
Total access equipment
|
|
|
1,698.5
|
|
|
-
|
|
|
|
1,698.5
|
|
|
|
1,534.6
|
|
|
-
|
|
|
|
1,534.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
426.8
|
|
|
1.2
|
|
|
|
428.0
|
|
|
|
965.6
|
|
|
0.1
|
|
|
|
965.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
354.1
|
|
|
15.8
|
|
|
|
369.9
|
|
|
|
335.9
|
|
|
18.2
|
|
|
|
354.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
197.1
|
|
|
-
|
|
|
|
197.1
|
|
|
|
175.1
|
|
|
-
|
|
|
|
175.1
|
|
|
Refuse collection
|
|
|
166.3
|
|
|
-
|
|
|
|
166.3
|
|
|
|
141.4
|
|
|
-
|
|
|
|
141.4
|
|
|
Other
|
|
|
64.7
|
|
|
3.0
|
|
|
|
67.7
|
|
|
|
55.5
|
|
|
2.9
|
|
|
|
58.4
|
|
|
Total commercial
|
|
|
428.1
|
|
|
3.0
|
|
|
|
431.1
|
|
|
|
372.0
|
|
|
2.9
|
|
|
|
374.9
|
|
|
Intersegment eliminations
|
|
|
-
|
|
|
(20.0
|
)
|
|
|
(20.0
|
)
|
|
|
-
|
|
|
(21.2
|
)
|
|
|
(21.2
|
)
|
|
Consolidated net sales
|
|
$
|
2,907.5
|
|
$
|
-
|
|
|
$
|
2,907.5
|
|
|
$
|
3,208.1
|
|
$
|
-
|
|
|
$
|
3,208.1
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
$
|
136.9
|
|
|
$
|
116.6
|
|
|
$
|
214.1
|
|
|
$
|
206.9
|
|
|
Defense
|
|
|
(12.0
|
)
|
|
|
34.5
|
|
|
|
(2.2
|
)
|
|
|
59.3
|
|
|
Fire & emergency
|
|
|
9.0
|
|
|
|
1.0
|
|
|
|
10.5
|
|
|
|
7.9
|
|
|
Commercial
|
|
|
8.6
|
|
|
|
5.4
|
|
|
|
21.0
|
|
|
|
15.6
|
|
|
Corporate
|
|
|
(32.8
|
)
|
|
|
(38.1
|
)
|
|
|
(68.1
|
)
|
|
|
(73.7
|
)
|
|
Intersegment eliminations
|
|
|
-
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
(0.1
|
)
|
|
Consolidated
|
|
$
|
109.7
|
|
|
$
|
119.4
|
|
|
$
|
175.4
|
|
|
$
|
215.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Period-end backlog:
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
$
|
654.1
|
|
|
$
|
726.5
|
|
|
|
|
|
|
Defense
|
|
|
573.9
|
|
|
|
1,242.0
|
|
|
|
|
|
|
Fire & emergency
|
|
|
716.1
|
|
|
|
534.1
|
|
|
|
|
|
|
Commercial
|
|
|
291.8
|
|
|
|
224.5
|
|
|
|
|
|
|
Consolidated
|
|
$
|
2,235.9
|
|
|
$
|
2,727.1
|
|
|
|
|
|
|
Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally
accepted accounting principles in the United States of America (GAAP).
The Company is presenting various operating results both on a reported
basis and on a basis excluding items that affect comparability of
results. When the Company uses operating results excluding certain items
as described below, they are considered non-GAAP financial measures. The
Company believes excluding the impact of these items is useful to
investors in comparing the Company’s performance to prior period
results. Non-GAAP financial measures should be viewed in addition to,
and not as an alternative for, the Company’s results prepared in
accordance with GAAP. The table below presents a reconciliation of the
Company’s presented non-GAAP measures to the most directly comparable
GAAP measures (in millions, except per share amounts):
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Defense operating income (loss) (non-GAAP)
|
|
$
|
(12.0
|
)
|
|
$
|
38.6
|
|
|
$
|
(5.6
|
)
|
|
$
|
63.4
|
|
|
Pension and OPEB curtailment
|
|
|
-
|
|
|
|
(4.1
|
)
|
|
|
3.4
|
|
|
|
(4.1
|
)
|
|
Defense operating income (loss) (GAAP)
|
|
$
|
(12.0
|
)
|
|
$
|
34.5
|
|
|
$
|
(2.2
|
)
|
|
$
|
59.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income (non-GAAP)
|
|
$
|
109.7
|
|
|
$
|
123.5
|
|
|
$
|
172.0
|
|
|
$
|
220.0
|
|
|
Pension and OPEB curtailment
|
|
|
-
|
|
|
|
(4.1
|
)
|
|
|
3.4
|
|
|
|
(4.1
|
)
|
|
Operating income (GAAP)
|
|
$
|
109.7
|
|
|
$
|
119.4
|
|
|
$
|
175.4
|
|
|
$
|
215.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted interest expense net of interest
|
|
|
|
|
|
|
|
|
|
income (non-GAAP)
|
|
$
|
(13.5
|
)
|
|
$
|
(15.5
|
)
|
|
$
|
(27.1
|
)
|
|
$
|
(31.2
|
)
|
|
Debt extinguishment costs
|
|
|
(14.7
|
)
|
|
|
(11.0
|
)
|
|
|
(14.7
|
)
|
|
|
(11.0
|
)
|
|
Interest expense net of interest income (GAAP)
|
|
$
|
(28.2
|
)
|
|
$
|
(26.5
|
)
|
|
$
|
(41.8
|
)
|
|
$
|
(42.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP)
|
|
$
|
63.9
|
|
|
$
|
69.0
|
|
|
$
|
96.5
|
|
|
$
|
123.9
|
|
|
Reduction of valuation allowance on net operating
|
|
|
|
|
|
|
|
|
|
loss carryforward
|
|
|
-
|
|
|
|
12.1
|
|
|
|
-
|
|
|
|
12.1
|
|
|
Pension and OPEB curtailment, net of tax
|
|
|
-
|
|
|
|
(2.6
|
)
|
|
|
2.1
|
|
|
|
(2.6
|
)
|
|
Debt extinguishment costs, net of tax
|
|
|
(9.3
|
)
|
|
|
(7.0
|
)
|
|
|
(9.3
|
)
|
|
|
(7.0
|
)
|
|
Net income (GAAP)
|
|
$
|
54.6
|
|
|
$
|
71.5
|
|
|
$
|
89.3
|
|
|
$
|
126.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
$
|
0.81
|
|
|
$
|
0.80
|
|
|
$
|
1.21
|
|
|
$
|
1.44
|
|
|
Reduction of valuation allowance on net operating
|
|
|
|
|
|
|
|
|
|
loss carryforward
|
|
|
-
|
|
|
|
0.14
|
|
|
|
-
|
|
|
|
0.14
|
|
|
Pension and OPEB curtailment, net of tax
|
|
|
-
|
|
|
|
(0.03
|
)
|
|
|
0.03
|
|
|
|
(0.03
|
)
|
|
Debt extinguishment costs, net of tax
|
|
|
(0.12
|
)
|
|
|
(0.08
|
)
|
|
|
(0.12
|
)
|
|
|
(0.08
|
)
|
|
Earnings per share-diluted (GAAP)
|
|
$
|
0.69
|
|
|
$
|
0.83
|
|
|
$
|
1.12
|
|
|
$
|
1.47
|
|
|
|
|
Fiscal 2015 Expectations
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
$
|
4.00
|
|
|
$
|
4.25
|
|
|
OPEB curtailment gain, net of tax
|
|
|
0.03
|
|
|
|
0.03
|
|
|
Debt extinguishment costs, net of tax
|
|
|
(0.12
|
)
|
|
|
(0.12
|
)
|
|
Earnings per share-diluted (GAAP)
|
|
$
|
3.91
|
|
|
$
|
4.16
|
|
|
________________________
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 Company’s 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.

Source: Oshkosh Corporation