Announces Fiscal 2019 Estimated EPS Range
Announces 12.5 Percent Increase in Quarterly Cash Dividend to
$0.27 Per Share
OSHKOSH, Wis.--(BUSINESS WIRE)--
Oshkosh Corporation (NYSE: OSK) today reported fiscal 2018 fourth
quarter net income of $151.3 million, or $2.05 per diluted share,
compared to $93.5 million, or $1.23 per diluted share, in the fourth
quarter of fiscal 2017. Results for the fourth quarter of fiscal 2018
included after-tax charges and inefficiencies of $2.4 million associated
with restructuring actions in the access equipment and commercial
segments, an after-tax loss on the sale of a small product line in the
commercial segment of $1.0 million, a $15.4 million after-tax gain on a
litigation settlement in the defense segment, a $4.9 million after-tax
gain on the receipt of business interruption insurance proceeds in the
commercial segment and a $2.0 million tax benefit related to adjustments
to provisional amounts recorded for tax reform in the United States.
Results for the fourth quarter of fiscal 2017 included after-tax charges
of $11.3 million associated with restructuring actions in the access
equipment segment. Excluding these items, fiscal 2018 fourth quarter
adjusted1 net income was $132.4 million, or $1.80 per diluted
share, compared to fiscal 2017 fourth quarter adjusted1 net
income of $104.8 million, or $1.38 per diluted share. Comparisons in
this news release are to the corresponding period of the prior year,
unless otherwise noted.
Consolidated net sales in the fourth quarter of fiscal 2018 increased
4.8 percent compared to the fourth quarter of fiscal 2017 to
$2.06 billion on strong demand for access equipment offset in part by
expected lower defense segment sales.
Consolidated operating income increased 49.7 percent to $201.4 million,
or 9.8 percent of sales, in the fourth quarter of fiscal 2018 compared
to $134.5 million, or 6.9 percent of sales, in the fourth quarter of
fiscal 2017. Results for the fourth quarter of fiscal 2018 included
pre-tax charges and inefficiencies of $2.9 million associated with
restructuring actions in the access equipment and commercial segments, a
pre-tax loss on the sale of a small product line in the commercial
segment of $1.4 million, a $19.0 million pre-tax gain on a litigation
settlement in the defense segment and a $6.6 million pre-tax gain on the
receipt of insurance proceeds in the commercial segment. Excluding these
items, adjusted1 operating income in the fourth quarter of
fiscal 2018 was $180.1 million, or 8.8 percent of sales. Excluding
$15.5 million of pre-tax restructuring-related charges in the access
equipment segment, adjusted1 operating income in the fourth
quarter of fiscal 2017 was $150.0 million, or 7.6 percent of sales. The
increase in adjusted1 operating income in the fourth quarter
of fiscal 2018 was primarily a result of improved pricing and the impact
of higher consolidated sales volume, offset in part by higher material
costs.
“Our strong fourth quarter capped off a successful year for Oshkosh
Corporation, a year in which we strengthened our customer relationships,
invested in our People First culture and delivered significant earnings
growth,” said Wilson R. Jones, president and chief executive officer of
Oshkosh Corporation. “During the quarter, we continued to execute our
MOVE strategy, including driving simplification initiatives to reduce
complexity in our businesses. This focus drove higher adjusted operating
income margins compared to the prior year quarter in all non-defense
segments and adjusted1 earnings per share growth of
30 percent, exceeding our expectations for the quarter.
“The efforts of our dedicated team members throughout the year resulted
in full year fiscal 2018 diluted earnings per share of $6.29 and adjusted1
diluted earnings per share of $6.36, increases of 67 and 50 percent,
respectively, compared to fiscal 2017. We still face headwinds,
including sharply higher raw material costs and continued global trade
uncertainty, but the performance of our team members in fiscal 2018
gives me confidence as we begin a new fiscal year.
“Based on expected continued favorable end markets, strong backlogs
entering the year and our industry-leading product offerings, we are
initiating a fiscal 2019 diluted earnings per share estimate range of
$6.50 to $7.25. We believe we are well-positioned as we continue to
invest in our business and in our people,” added Jones.
Factors affecting fourth quarter results for the Company’s business
segments included:
Access Equipment - Access equipment segment net sales increased
27.2 percent to $1.06 billion in the fourth quarter of fiscal 2018. The
increase in sales was due to improved demand for both aerial work
platforms and telehandlers, led by North America, and improved price
realization.
Access equipment segment operating income increased 103.5 percent to
$127.0 million, or 12.0 percent of sales, in the fourth quarter of
fiscal 2018 compared to $62.4 million, or 7.5 percent of sales, in the
fourth quarter of fiscal 2017. The increase in operating income was
primarily due to the impact of higher sales volume, improved pricing and
lower restructuring-related expenses, offset in part by higher material
and freight costs. Unfavorable foreign exchange rates also negatively
impacted access equipment segment operating income by $7.4 million, or
70 basis points.
Access equipment segment results for the fourth quarter of fiscal 2018
included pre-tax charges and inefficiencies associated with previously
announced restructuring actions of $1.3 million. Access equipment
segment results for the fourth quarter of fiscal 2017 included pre-tax
charges associated with restructuring actions of $15.5 million.
Excluding these charges and inefficiencies, adjusted1
operating income was $128.3 million, or 12.1 percent of sales, in the
fourth quarter of fiscal 2018 compared to $77.9 million, or 9.3 percent
of sales, in the fourth quarter of fiscal 2017.
Defense - Defense segment net sales for the fourth quarter of
fiscal 2018 decreased 22.2 percent to $464.6 million. The decrease in
sales was due to the absence of international Mine Resistant Ambush
Protected-All Terrain Vehicle (M-ATV) sales in the fourth quarter of
fiscal 2018, offset in part by the continued ramp up of sales to the
U.S. government under the Joint Light Tactical Vehicle (JLTV) program
and higher aftermarket parts sales.
Defense segment operating income decreased 14.5 percent to
$62.4 million, or 13.4 percent of sales, in the fourth quarter of fiscal
2018 compared to $73.0 million, or 12.2 percent of sales, in the fourth
quarter of fiscal 2017. Defense segment results for the fourth quarter
of fiscal 2018 included a pre-tax gain of $19.0 million on a litigation
settlement. Excluding this gain, adjusted1 operating income
was $43.4 million, or 9.3 percent of sales, in the fourth quarter of
fiscal 2018. The decrease in adjusted1 operating income was
due to the impact of lower sales volume and an adverse product mix,
offset in part by improved manufacturing performance.
Fire & Emergency - Fire & emergency segment net sales for the
fourth quarter of fiscal 2018 increased 2.1 percent to $283.7 million as
a result of improved pricing.
Fire & emergency segment operating income increased 14.7 percent to
$39.7 million, or 14.0 percent of sales, in the fourth quarter of fiscal
2018 compared to $34.6 million, or 12.4 percent of sales, in the fourth
quarter of fiscal 2017. The increase in operating income was a result of
improved pricing and favorable extended warranty experience, offset in
part by higher material costs.
Commercial - Commercial segment net sales for the fourth quarter
of fiscal 2018 decreased 2.2 percent to $254.2 million on lower package
sales, which include third-party chassis, offset in part by higher
concrete mixer unit volume.
Commercial segment operating income increased 52.6 percent to
$17.7 million, or 7.0 percent of sales, in the fourth quarter of fiscal
2018 compared to $11.6 million, or 4.5 percent of sales, in the fourth
quarter of fiscal 2017. Excluding pre-tax restructuring charges of
$1.6 million, a pre-tax loss on the sale of a business of $1.4 million
and a $6.6 million pre-tax gain on the receipt of insurance proceeds,
adjusted1 operating income was $14.1 million, or 5.5 percent
of sales, in the fourth quarter of fiscal 2018. The increase in adjusted1
operating income was largely a result of favorable product mix and lower
warranty costs, offset by the impact of slightly lower sales volume.
Corporate - Corporate operating costs decreased $1.8 million in
the fourth quarter of fiscal 2018 to $45.3 million due primarily to
lower share-based compensation costs.
Interest Expense Net of Interest Income - Interest expense net of
interest income decreased $2.6 million to $10.4 million in the fourth
quarter of fiscal 2018.
Provision for Income Taxes - The Company recorded income tax
expense of $38.3 million in the fourth quarter of fiscal 2018, or
20.2 percent of pre-tax income, compared to $28.3 million, or
23.3 percent of pre-tax income, in the fourth quarter of fiscal 2017.
Excluding the tax impact of adjusted items and $2.0 million related to
implementation of tax reform, adjusted1 income tax expense in
the fourth quarter of fiscal 2018 was $35.9 million, or 21.3 percent of
adjusted pre-tax income. Excluding the impact of restructuring-related
charges, adjusted1 income tax expense in the fourth quarter
of fiscal 2017 was $32.5 million, or 23.7 percent of adjusted pre-tax
income. The decrease in the Company's effective income tax rate was
primarily due to tax reform enacted in the United States. Adjusted1
income tax expense included $8.1 million and $11.4 million of discrete
tax benefits in the fourth quarter of fiscal 2018 and 2017,
respectively, primarily related to favorable share-based compensation
tax benefits and the resolution of state tax matters.
Share Repurchases -The Company deployed cash of $82.5 million to
repurchase 1,162,733 shares of Common Stock in the fourth quarter of
fiscal 2018. Share repurchases completed during the previous twelve
months benefited earnings per share in the fourth quarter of fiscal 2018
by $0.07 compared to the prior year fourth quarter.
Full-Year Results
The Company reported net sales for fiscal 2018 of $7.71 billion and net
income of $471.9 million, or $6.29 per diluted share. This compares with
net sales of $6.83 billion and net income of $285.6 million, or $3.77
per diluted share, in the prior year. Results for fiscal 2018 included
after-tax charges and inefficiencies of $27.5 million associated with
restructuring actions in the access equipment and commercial segments,
$7.7 million of after-tax debt extinguishment costs incurred in
connection with the refinancing of the Company’s senior notes and credit
agreement, an after-tax loss on the sale of a business in the commercial
segment of $1.0 million, a $15.4 million after-tax gain on a litigation
settlement in the defense segment, a $4.9 million after-tax gain on the
receipt of insurance proceeds in the commercial segment and tax benefits
of $10.7 million related to the implementation of tax reform in the
United States. Excluding these items, fiscal 2018 adjusted1
net income was $477.1 million, or $6.36 per diluted share. Fiscal 2017
results included $36.2 million of after-tax restructuring-related
charges in the access equipment segment. Excluding this item, fiscal
2017 adjusted1 net income was $321.8 million, or $4.25 per
diluted share. Higher gross margin related to higher consolidated sales
and a lower effective tax rate as a result of tax reform in the United
States contributed to the significant improvement in net income in
fiscal 2018. Share repurchases completed during the previous twelve
months benefited earnings per share by $0.12 in fiscal 2018 compared to
the prior year.
Fiscal 2019 Expectations
The Company announced its fiscal 2019 diluted earnings per share
estimate range of $6.50 to $7.25 on projected net sales between
$7.85 billion and $8.15 billion. These estimates reflect operating
income between $640 million and $710 million.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash
dividend of $0.27 per share of Common Stock. The dividend, increased by
12.5 percent from the previous dividend, will be payable on December 3,
2018, to shareholders of record as of November 19, 2018.
Conference Call
The Company will comment on its fiscal 2018 fourth quarter earnings and
its full-year fiscal 2019 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 news 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 news
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 and
construction seasons; the Company’s ability to increase prices or impose
surcharges to raise margins or to offset higher input costs, including
increased commodity, raw material, labor and freights costs; the
Company’s estimates of access equipment demand which, among other
factors, is influenced by customer historical buying patterns and rental
company fleet replacement strategies; the strength of the U.S. dollar
and its impact on Company exports, translation of foreign sales and the
cost of purchased materials; the expected level and timing of U.S.
Department of Defense (DoD) and international defense customer
procurement of products and services and acceptance of and funding or
payments for such products and services; the Company's ability to
predict the level and timing of orders for indefinite
delivery/indefinite quantity contracts with the U.S. federal government;
risks related to reductions in government expenditures in light of U.S.
defense budget pressures, sequestration and an uncertain DoD tactical
wheeled vehicle strategy; the impact of any DoD solicitation for
competition for future contracts to produce military vehicles; 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; projected adoption rates of work at height
machinery in emerging markets; the impact of severe weather or natural
disasters that may affect the Company, its suppliers or its customers;
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 associated
with international operations and sales, including compliance with the
Foreign Corrupt Practices Act; risks that an escalating trade war and
related tariffs could reduce the competitiveness of the Company's
products; the Company’s ability to comply with complex laws and
regulations applicable to U.S. government contractors; cybersecurity
risks and costs of defending against, mitigating and responding to data
security threats and breaches; the Company's ability to successfully
identify, complete and integrate acquisitions and to realize the
anticipated benefits associated with the same; 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 news
release. The Company assumes no obligation, and disclaims any
obligation, to update information contained in this news 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
Founded in 1917, Oshkosh Corporation is more than 100 years strong and
continues to make a difference in people’s lives. Oshkosh brings
together a unique set of integrated capabilities and diverse end markets
that, when combined with the Company’s MOVE strategy and positive
long-term outlook, illustrate why Oshkosh is a different integrated
global industrial. The Company is a leader in designing, manufacturing
and servicing a broad range of access equipment, commercial, fire &
emergency, military and specialty vehicles and vehicle bodies under the
brands of Oshkosh®, JLG®, Pierce®,
McNeilus®, Jerr-Dan®, Frontline™,
CON-E-CO®, London® and IMT®.
Today, Oshkosh Corporation is a Fortune 500 Company with manufacturing
operations on four continents. Its products are recognized around the
world for quality, durability and innovation and can be found in more
than 150 countries around the globe. As a different integrated global
industrial, Oshkosh is committed to making a difference for team
members, customers, shareholders, communities and the environment. For
more information, please visit www.oshkoshcorporation.com.
®, ™ 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
(In millions, except share and per share amounts; unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
Fiscal Year Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net sales
|
|
$
|
2,057.0
|
|
|
$
|
1,963.0
|
|
|
$
|
7,705.5
|
|
|
$
|
6,829.6
|
|
Cost of sales
|
|
1,681.8
|
|
|
1,636.5
|
|
|
6,349.8
|
|
|
5,655.2
|
|
Gross income
|
|
375.2
|
|
|
326.5
|
|
|
1,355.7
|
|
|
1,174.4
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
164.6
|
|
|
180.9
|
|
|
663.9
|
|
|
665.6
|
|
Amortization of purchased intangibles
|
|
9.2
|
|
|
11.1
|
|
|
38.3
|
|
|
45.8
|
|
Total operating expenses
|
|
173.8
|
|
|
192.0
|
|
|
702.2
|
|
|
711.4
|
|
Operating income
|
|
201.4
|
|
|
134.5
|
|
|
653.5
|
|
|
463.0
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(14.0
|
)
|
|
(14.7
|
)
|
|
(70.9
|
)
|
|
(59.8
|
)
|
Interest income
|
|
3.6
|
|
|
1.7
|
|
|
15.3
|
|
|
4.9
|
|
Miscellaneous, net
|
|
(1.2
|
)
|
|
0.1
|
|
|
(3.3
|
)
|
|
3.2
|
|
Income before income taxes and earnings of unconsolidated affiliates
|
|
189.8
|
|
|
121.6
|
|
|
594.6
|
|
|
411.3
|
|
Provision for income taxes
|
|
38.3
|
|
|
28.3
|
|
|
123.8
|
|
|
127.2
|
|
Income before earnings of unconsolidated affiliates
|
|
151.5
|
|
|
93.3
|
|
|
470.8
|
|
|
284.1
|
|
Equity in earnings (losses) of unconsolidated affiliates
|
|
(0.2
|
)
|
|
0.2
|
|
|
1.1
|
|
|
1.5
|
|
Net income
|
|
$
|
151.3
|
|
|
$
|
93.5
|
|
|
$
|
471.9
|
|
|
$
|
285.6
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.08
|
|
|
$
|
1.25
|
|
|
$
|
6.38
|
|
|
$
|
3.82
|
|
Diluted
|
|
2.05
|
|
|
1.23
|
|
|
6.29
|
|
|
3.77
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding
|
|
72,880,114
|
|
|
74,914,622
|
|
|
74,001,582
|
|
|
74,674,115
|
|
Dilutive equity-based compensation awards
|
|
874,078
|
|
|
1,186,284
|
|
|
980,417
|
|
|
1,115,930
|
|
Diluted weighted-average shares outstanding
|
|
73,754,192
|
|
|
76,100,906
|
|
|
74,981,999
|
|
|
75,790,045
|
|
OSHKOSH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions; unaudited)
|
|
|
|
September 30,
|
|
|
2018
|
|
2017
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
454.6
|
|
|
$
|
447.0
|
|
Receivables, net
|
|
1,521.6
|
|
|
1,306.3
|
|
Inventories, net
|
|
1,227.7
|
|
|
1,198.4
|
|
Other current assets
|
|
66.0
|
|
|
88.1
|
|
Total current assets
|
|
3,269.9
|
|
|
3,039.8
|
|
Property, plant and equipment:
|
|
|
|
|
Property, plant and equipment
|
|
1,222.7
|
|
|
1,188.8
|
|
Accumulated depreciation
|
|
(741.6
|
)
|
|
(718.9
|
)
|
Property, plant and equipment, net
|
|
481.1
|
|
|
469.9
|
|
Goodwill
|
|
1,007.9
|
|
|
1,013.0
|
|
Purchased intangible assets, net
|
|
469.4
|
|
|
507.8
|
|
Other long-term assets
|
|
65.9
|
|
|
68.4
|
|
Total assets
|
|
$
|
5,294.2
|
|
|
$
|
5,098.9
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Revolving credit facilities and current maturities of long-term debt
|
|
$
|
—
|
|
|
$
|
23.0
|
|
Accounts payable
|
|
776.9
|
|
|
651.0
|
|
Customer advances
|
|
444.9
|
|
|
513.4
|
|
Payroll-related obligations
|
|
192.5
|
|
|
191.8
|
|
Other current liabilities
|
|
275.8
|
|
|
303.9
|
|
Total current liabilities
|
|
1,690.1
|
|
|
1,683.1
|
|
Long-term debt, less current maturities
|
|
818.0
|
|
|
807.9
|
|
Other long-term liabilities
|
|
272.6
|
|
|
300.5
|
|
Commitments and contingencies
|
|
|
|
|
Shareholders' equity
|
|
2,513.5
|
|
|
2,307.4
|
|
Total liabilities and shareholders' equity
|
|
$
|
5,294.2
|
|
|
$
|
5,098.9
|
|
OSHKOSH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions; unaudited)
|
|
|
|
Fiscal Year Ended
September 30,
|
|
|
2018
|
|
2017
|
Operating activities:
|
|
|
|
|
Net income
|
|
$
|
471.9
|
|
|
$
|
285.6
|
|
Depreciation and amortization
|
|
120.5
|
|
|
130.3
|
|
Stock-based compensation expense
|
|
26.7
|
|
|
22.4
|
|
Deferred income taxes
|
|
(3.1
|
)
|
|
7.8
|
|
Loss (gain) on sale of assets
|
|
1.1
|
|
|
(6.6
|
)
|
Foreign currency transaction losses
|
|
1.4
|
|
|
1.6
|
|
Debt extinguishment
|
|
10.3
|
|
|
—
|
|
Other non-cash adjustments
|
|
2.3
|
|
|
0.1
|
|
Changes in operating assets and liabilities
|
|
(194.8
|
)
|
|
(194.7
|
)
|
Net cash provided by operating activities
|
|
436.3
|
|
|
246.5
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Additions to property, plant and equipment
|
|
(95.3
|
)
|
|
(85.8
|
)
|
Additions to equipment held for rental
|
|
(4.8
|
)
|
|
(27.4
|
)
|
Proceeds from sale of property, plant and equipment
|
|
5.7
|
|
|
0.8
|
|
Proceeds from sale of equipment held for rental
|
|
5.8
|
|
|
49.5
|
|
Other investing activities
|
|
(1.8
|
)
|
|
(2.3
|
)
|
Net cash used by investing activities
|
|
(90.4
|
)
|
|
(65.2
|
)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Proceeds from issuance of debt
|
|
639.4
|
|
|
5.9
|
|
Repayments of debt
|
|
(653.8
|
)
|
|
(23.0
|
)
|
Debt issuance costs
|
|
(12.9
|
)
|
|
—
|
|
Repurchases of common stock
|
|
(257.0
|
)
|
|
(4.8
|
)
|
Dividends paid
|
|
(71.2
|
)
|
|
(62.8
|
)
|
Proceeds from exercise of stock options
|
|
16.6
|
|
|
39.9
|
|
Net cash used by financing activities
|
|
(338.9
|
)
|
|
(44.8
|
)
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
0.6
|
|
|
(11.4
|
)
|
Increase in cash and cash equivalents
|
|
7.6
|
|
|
125.1
|
|
Cash and cash equivalents at beginning of period
|
|
447.0
|
|
|
321.9
|
|
Cash and cash equivalents at end of period
|
|
$
|
454.6
|
|
|
$
|
447.0
|
|
OSHKOSH CORPORATION
SEGMENT INFORMATION
(In millions; unaudited)
|
|
|
|
Three Months Ended September 30,
|
|
|
2018
|
|
2017
|
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
$
|
555.7
|
|
|
$
|
—
|
|
|
$
|
555.7
|
|
|
$
|
443.4
|
|
|
$
|
—
|
|
|
$
|
443.4
|
|
Telehandlers
|
|
284.3
|
|
|
—
|
|
|
284.3
|
|
|
204.0
|
|
|
—
|
|
|
204.0
|
|
Other
|
|
220.6
|
|
|
—
|
|
|
220.6
|
|
|
186.4
|
|
|
—
|
|
|
186.4
|
|
Total access equipment
|
|
1,060.6
|
|
|
—
|
|
|
1,060.6
|
|
|
833.8
|
|
|
—
|
|
|
833.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
464.1
|
|
|
0.5
|
|
|
464.6
|
|
|
596.5
|
|
|
0.3
|
|
|
596.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
279.4
|
|
|
4.3
|
|
|
283.7
|
|
|
273.9
|
|
|
4.1
|
|
|
278.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
120.3
|
|
|
—
|
|
|
120.3
|
|
|
118.4
|
|
|
—
|
|
|
118.4
|
|
Refuse collection
|
|
103.0
|
|
|
—
|
|
|
103.0
|
|
|
112.0
|
|
|
—
|
|
|
112.0
|
|
Other
|
|
29.2
|
|
|
1.7
|
|
|
30.9
|
|
|
28.2
|
|
|
1.3
|
|
|
29.5
|
|
Total commercial
|
|
252.5
|
|
|
1.7
|
|
|
254.2
|
|
|
258.6
|
|
|
1.3
|
|
|
259.9
|
|
Corporate & eliminations
|
|
0.4
|
|
|
(6.5
|
)
|
|
(6.1
|
)
|
|
0.2
|
|
|
(5.7
|
)
|
|
(5.5
|
)
|
|
|
$
|
2,057.0
|
|
|
$
|
—
|
|
|
$
|
2,057.0
|
|
|
$
|
1,963.0
|
|
|
$
|
—
|
|
|
$
|
1,963.0
|
|
|
|
Fiscal Year Ended September 30,
|
|
|
2018
|
|
2017
|
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
$
|
2,017.2
|
|
|
$
|
—
|
|
|
$
|
2,017.2
|
|
|
$
|
1,629.6
|
|
|
$
|
—
|
|
|
$
|
1,629.6
|
|
Telehandlers
|
|
948.9
|
|
|
—
|
|
|
948.9
|
|
|
661.8
|
|
|
—
|
|
|
661.8
|
|
Other
|
|
810.7
|
|
|
—
|
|
|
810.7
|
|
|
735.0
|
|
|
—
|
|
|
735.0
|
|
Total access equipment
|
|
3,776.8
|
|
|
—
|
|
|
3,776.8
|
|
|
3,026.4
|
|
|
—
|
|
|
3,026.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
1,827.3
|
|
|
1.6
|
|
|
1,828.9
|
|
|
1,818.6
|
|
|
1.5
|
|
|
1,820.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
1,053.6
|
|
|
16.1
|
|
|
1,069.7
|
|
|
1,015.4
|
|
|
15.5
|
|
|
1,030.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
491.8
|
|
|
—
|
|
|
491.8
|
|
|
474.0
|
|
|
—
|
|
|
474.0
|
|
Refuse collection
|
|
438.3
|
|
|
—
|
|
|
438.3
|
|
|
391.1
|
|
|
—
|
|
|
391.1
|
|
Other
|
|
116.7
|
|
|
7.9
|
|
|
124.6
|
|
|
99.3
|
|
|
5.9
|
|
|
105.2
|
|
Total commercial
|
|
1,046.8
|
|
|
7.9
|
|
|
1,054.7
|
|
|
964.4
|
|
|
5.9
|
|
|
970.3
|
|
Corporate & eliminations
|
|
1.0
|
|
|
(25.6
|
)
|
|
(24.6
|
)
|
|
4.8
|
|
|
(22.9
|
)
|
|
(18.1
|
)
|
|
|
$
|
7,705.5
|
|
|
$
|
—
|
|
|
$
|
7,705.5
|
|
|
$
|
6,829.6
|
|
|
$
|
—
|
|
|
$
|
6,829.6
|
|
|
|
Three Months Ended
September 30,
|
|
Fiscal Year Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
Access equipment
|
|
$
|
127.0
|
|
|
$
|
62.4
|
|
|
$
|
387.8
|
|
|
$
|
259.1
|
|
Defense
|
|
62.4
|
|
|
73.0
|
|
|
222.9
|
|
|
207.9
|
|
Fire & emergency
|
|
39.7
|
|
|
34.6
|
|
|
137.2
|
|
|
104.2
|
|
Commercial
|
|
17.7
|
|
|
11.6
|
|
|
67.5
|
|
|
43.8
|
|
Corporate
|
|
(45.3
|
)
|
|
(47.1
|
)
|
|
(161.9
|
)
|
|
(152.0
|
)
|
Eliminations
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
$
|
201.4
|
|
|
$
|
134.5
|
|
|
$
|
653.5
|
|
|
$
|
463.0
|
|
|
|
|
|
|
September 30,
|
|
2018
|
|
2017
|
Period-end backlog:
|
|
|
|
Access equipment
|
$
|
962.4
|
|
|
$
|
452.2
|
|
Defense
|
1,856.4
|
|
|
2,086.2
|
|
Fire & emergency
|
978.1
|
|
|
931.6
|
|
Commercial
|
376.0
|
|
|
321.0
|
|
|
$
|
4,172.9
|
|
|
$
|
3,791.0
|
|
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 GAAP basis
and on a basis excluding items that affect comparability of results.
When the Company excludes 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 GAAP measures to
the most directly comparable non-GAAP measures (in millions, except per
share amounts):
|
|
Three Months Ended
September 30,
|
|
Fiscal Year Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Access equipment segment operating income (GAAP)
|
|
$
|
127.0
|
|
|
$
|
62.4
|
|
|
$
|
387.8
|
|
|
$
|
259.1
|
|
Costs and inefficiencies related to restructuring actions
|
|
1.3
|
|
|
15.5
|
|
|
29.5
|
|
|
43.3
|
|
Adjusted access equipment segment operating
income (non-GAAP)
|
|
$
|
128.3
|
|
|
$
|
77.9
|
|
|
$
|
417.3
|
|
|
$
|
302.4
|
|
|
|
|
|
|
|
|
|
|
Defense segment operating income (GAAP)
|
|
$
|
62.4
|
|
|
$
|
73.0
|
|
|
$
|
222.9
|
|
|
$
|
207.9
|
|
Litigation settlement
|
|
(19.0
|
)
|
|
—
|
|
|
(19.0
|
)
|
|
—
|
|
Adjusted defense segment operating income (non-GAAP)
|
|
$
|
43.4
|
|
|
$
|
73.0
|
|
|
$
|
203.9
|
|
|
$
|
207.9
|
|
|
|
|
|
|
|
|
|
|
Commercial segment operating income (GAAP)
|
|
$
|
17.7
|
|
|
$
|
11.6
|
|
|
$
|
67.5
|
|
|
$
|
43.8
|
|
Restructuring costs
|
|
1.6
|
|
|
—
|
|
|
5.9
|
|
|
—
|
|
Business interruption insurance proceeds
|
|
(6.6
|
)
|
|
—
|
|
|
(6.6
|
)
|
|
—
|
|
Loss on sale of a small product line
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Adjusted commercial segment operating income (non-GAAP)
|
|
$
|
14.1
|
|
|
$
|
11.6
|
|
|
$
|
68.2
|
|
|
$
|
43.8
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income (GAAP)
|
|
$
|
201.4
|
|
|
$
|
134.5
|
|
|
$
|
653.5
|
|
|
$
|
463.0
|
|
Costs and inefficiencies related to restructuring actions
|
|
2.9
|
|
|
15.5
|
|
|
35.4
|
|
|
43.3
|
|
Litigation settlement
|
|
(19.0
|
)
|
|
—
|
|
|
(19.0
|
)
|
|
—
|
|
Business interruption insurance proceeds
|
|
(6.6
|
)
|
|
—
|
|
|
(6.6
|
)
|
|
—
|
|
Loss on sale of a small product line
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Adjusted consolidated operating income (non-GAAP)
|
|
$
|
180.1
|
|
|
$
|
150.0
|
|
|
$
|
664.7
|
|
|
$
|
506.3
|
|
|
|
|
|
|
|
|
|
|
Interest expense net of interest income (GAAP)
|
|
$
|
(10.4
|
)
|
|
$
|
(13.0
|
)
|
|
$
|
(55.6
|
)
|
|
$
|
(54.9
|
)
|
Debt extinguishment costs
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|
—
|
|
Adjusted interest expense net of interest income (non-GAAP)
|
|
$
|
(10.4
|
)
|
|
$
|
(13.0
|
)
|
|
$
|
(45.7
|
)
|
|
$
|
(54.9
|
)
|
|
|
Three Months Ended
September 30,
|
|
Fiscal Year Ended
September 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (GAAP)
|
|
$
|
38.3
|
|
|
$
|
28.3
|
|
|
$
|
123.8
|
|
|
$
|
127.2
|
Income tax benefit of costs and inefficiencies related to
restructuring actions
|
|
0.5
|
|
|
4.2
|
|
|
7.9
|
|
|
7.1
|
Income tax expense on litigation settlement
|
|
(3.6
|
)
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
Income tax expense on business interruption insurance proceeds
|
|
(1.7
|
)
|
|
—
|
|
|
(1.7
|
)
|
|
—
|
Income tax benefit of loss on sale of a small product line
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
Income tax benefit of debt extinguishment costs
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
—
|
Revaluation of net deferred tax liabilities
|
|
—
|
|
|
—
|
|
|
30.2
|
|
|
—
|
Repatriation tax
|
|
2.0
|
|
|
—
|
|
|
(19.5
|
)
|
|
—
|
Adjusted provision for income taxes (non-GAAP)
|
|
$
|
35.9
|
|
|
$
|
32.5
|
|
|
$
|
139.7
|
|
|
$
|
134.3
|
|
|
|
|
|
|
|
|
|
Net income (GAAP)
|
|
$
|
151.3
|
|
|
$
|
93.5
|
|
|
$
|
471.9
|
|
|
$
|
285.6
|
Costs and inefficiencies related to restructuring actions, net of tax
|
|
2.4
|
|
|
11.3
|
|
|
27.5
|
|
|
36.2
|
Litigation settlement, net of tax
|
|
(15.4
|
)
|
|
—
|
|
|
(15.4
|
)
|
|
—
|
Business interruption insurance proceeds, net of tax
|
|
(4.9
|
)
|
|
—
|
|
|
(4.9
|
)
|
|
—
|
Loss on sale of a small product line, net of tax
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
—
|
Debt extinguishment costs, net of tax
|
|
—
|
|
|
—
|
|
|
7.7
|
|
|
—
|
Revaluation of net deferred tax liabilities
|
|
—
|
|
|
—
|
|
|
(30.2
|
)
|
|
—
|
Repatriation tax
|
|
(2.0
|
)
|
|
—
|
|
|
19.5
|
|
|
—
|
Adjusted net income (non-GAAP)
|
|
$
|
132.4
|
|
|
$
|
104.8
|
|
|
$
|
477.1
|
|
|
$
|
321.8
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted (GAAP)
|
|
$
|
2.05
|
|
|
$
|
1.23
|
|
|
$
|
6.29
|
|
|
$
|
3.77
|
Costs and inefficiencies related to restructuring actions, net of tax
|
|
0.05
|
|
|
0.15
|
|
|
0.37
|
|
|
0.48
|
Litigation settlement, net of tax
|
|
(0.21
|
)
|
|
—
|
|
|
(0.21
|
)
|
|
—
|
Business interruption insurance proceeds, net of tax
|
|
(0.07
|
)
|
|
—
|
|
|
(0.07
|
)
|
|
—
|
Loss on sale of a small product line, net of tax
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
Debt extinguishment costs, net of tax
|
|
—
|
|
|
—
|
|
|
0.10
|
|
|
—
|
Revaluation of net deferred tax liabilities
|
|
—
|
|
|
—
|
|
|
(0.39
|
)
|
|
—
|
Repatriation tax
|
|
(0.03
|
)
|
|
—
|
|
|
0.26
|
|
|
—
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
$
|
1.80
|
|
|
$
|
1.38
|
|
|
$
|
6.36
|
|
|
$
|
4.25
|
_____________________________________
|
1 This news 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 the Company’s presented GAAP
measures to the most directly comparable non-GAAP measures can be
found under the caption “Non-GAAP Financial Measures” in this news
release.
|
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181101005339/en/
Oshkosh Corporation
Financial:
Patrick Davidson
Sr. Vice
President, Investor Relations
920.966.5939
or
Media:
Bryan
Brandt
Sr. Vice President and Chief Marketing Officer
920.966.5982
Source: Oshkosh Corporation