Increases Fiscal 2018 Revenue Expectations
Raises Fiscal 2018 Estimated EPS Range
Declares Quarterly Cash Dividend of $0.24 Per Share
OSHKOSH, Wis.--(BUSINESS WIRE)--
Oshkosh Corporation (NYSE: OSK) today reported fiscal 2018 second
quarter net income of $110.8 million, or $1.47 per diluted share,
compared to $44.3 million, or $0.58 per diluted share, in the second
quarter of fiscal 2017. Results for the second quarter of fiscal 2018
included after-tax charges and inefficiencies of $5.8 million associated
with restructuring actions in the access equipment and commercial
segments. Results for the second quarter of fiscal 2017 included
after-tax charges of $13.7 million associated with restructuring actions
in the access equipment segment. Excluding these charges and
inefficiencies, adjusted1 net income was $116.6 million, or
$1.54 per diluted share, in the second quarter of fiscal 2018 compared
to $58.0 million, or $0.76 per diluted share, in the second quarter of
fiscal 2017. Comparisons in this news release are to the corresponding
period of the prior year, unless otherwise noted.
Consolidated net sales in the second quarter of fiscal 2018 were
$1.89 billion, an increase of 16.6 percent compared to the second
quarter of fiscal 2017. The Company reported double-digit percentage
sales growth in all non-defense segments.
Consolidated operating income increased 93.9 percent to $155.9 million,
or 8.3 percent of sales, in the second quarter of fiscal 2018 compared
to $80.4 million, or 5.0 percent of sales, in the second quarter of
fiscal 2017. The increase in operating income in the second quarter of
fiscal 2018 was primarily a result of the impact of higher consolidated
sales volume, improved performance in the fire & emergency segment and
lower costs related to restructuring actions. Excluding $7.0 million of
pre-tax charges and inefficiencies related to restructuring actions in
the access equipment and commercial segments, adjusted1
operating income in the second quarter of fiscal 2018 was $162.9 million
or 8.6 percent of sales. Excluding $17.2 million of pre-tax
restructuring-related charges in the access equipment segment, adjusted1
operating income in the second quarter of fiscal 2017 was $97.6 million,
or 6.0 percent of sales.
“We are pleased to report another quarter of solid results highlighted
by growth in revenue, adjusted operating income and adjusted earnings
per share,” said Wilson R. Jones, president and chief executive officer
of Oshkosh Corporation. “We continued to benefit in the quarter from a
positive economic environment in the United States and strong demand
globally for our products. We are also experiencing some challenges
related to the positive economic environment, including a tight labor
market, a more constrained supply chain and higher logistics and
material costs. We are proactively addressing these headwinds, including
implementing steel and aluminum surcharges in our non-defense segments.
“During the quarter, our defense segment was awarded the U.S. Army’s
FMTV A2 contract providing our team with another tactical wheeled
vehicle program of record and solidifying our position as the United
States’ premier manufacturer of world class military vehicles. This
award gives us visibility to supply the United States military with
these impressive medium payload vehicles well into the next decade.
“As a result of our solid second quarter performance and our positive
outlook for the remainder of the year, we are raising our full-year
fiscal 2018 earnings per share estimate range to $5.10 to $5.55 and our
adjusted1 earnings per share estimate range to $5.40 to
$5.85,” said Jones.
Factors affecting second quarter results for the Company’s business
segments included:
Access Equipment - Access equipment segment net sales increased
28.3 percent to $927.9 million in the second quarter of fiscal 2018. The
increase in sales was due to improved demand for both aerial work
platforms and telehandlers. All regions reported double digit increases
in sales in the second quarter of fiscal 2018 as compared to the second
quarter of fiscal 2017.
Access equipment segment operating income increased 132.1 percent to
$97.7 million, or 10.5 percent of sales, in the second quarter of fiscal
2018 compared to $42.1 million, or 5.8 percent of sales, in the second
quarter of fiscal 2017. Access equipment segment results for the second
quarter of fiscal 2018 included pre-tax charges and inefficiencies
associated with previously announced restructuring actions of
$5.2 million. Access equipment segment results for the second quarter of
fiscal 2017 included pre-tax charges associated with previously
announced restructuring actions of $17.2 million. Excluding these
charges and inefficiencies, adjusted1 operating income was
$102.9 million, or 11.1 percent of sales, in the second quarter of
fiscal 2018 compared to $59.3 million, or 8.2 percent of sales, in the
second quarter of fiscal 2017. The increase in adjusted1
operating income in the second quarter of fiscal 2018 compared to the
second quarter of fiscal 2017 was primarily due to the impact of higher
sales volume, the recognition of deferred margin upon the receipt of
cash and improved price realization, offset in part by challenges
associated with the ramp up to higher production volumes.
Defense - Defense segment net sales for the second quarter of
fiscal 2018 decreased 4.0 percent to $428.2 million. The decrease in
sales was due to the absence of international Mine Resistant Ambush
Protected-All Terrain Vehicle (M-ATV) sales in the second quarter of
fiscal 2018, largely offset by the continued ramp up of sales to the
U.S. government under the Joint Light Tactical Vehicle (JLTV) program.
Defense segment operating income decreased 1.8 percent to $47.8 million,
or 11.2 percent of sales, in the second quarter of fiscal 2018 compared
to $48.7 million, or 10.9 percent of sales, in the second quarter of
fiscal 2017. The decrease in 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
second quarter of fiscal 2018 increased 15.0 percent to $273.1 million.
The increase in sales was due to higher fire apparatus sales and
improved pricing.
Fire & emergency segment operating income increased 65.1 percent to
$36.0 million, or 13.2 percent of sales, in the second quarter of fiscal
2018 compared to $21.8 million, or 9.2 percent of sales, in the second
quarter of fiscal 2017. The increase in operating income was a result of
improved pricing, the impact of higher sales volume and improved
manufacturing performance, offset in part by higher selling, general and
administrative expenses.
Commercial - Commercial segment net sales increased 22.2 percent
to $263.9 million in the second quarter of fiscal 2018. The increase in
sales was primarily due to higher refuse collection vehicle unit volume.
Commercial segment operating income increased 173.3 percent to
$16.4 million, or 6.2 percent of sales, in the second quarter of fiscal
2018 compared to $6.0 million, or 2.8 percent of sales, in the second
quarter of fiscal 2017. Excluding restructuring-related charges of
$1.8 million, adjusted1 operating income in the second
quarter of fiscal 2018 was $18.2 million, or 6.9 percent of sales. The
increase in operating income was largely a result of the impact of
higher sales volume, improved product mix and lower warranty costs.
Commercial segment second quarter fiscal 2017 results included
$1.3 million of costs related to an accident at one of its manufacturing
facilities.
Corporate - Corporate operating costs increased $3.8 million in
the second quarter of fiscal 2018 to $42.0 million due primarily to
higher incentive compensation costs on higher earnings and higher new
product development spending.
Interest Expense Net of Interest Income - Interest expense net of
interest income decreased $6.1 million to $8.0 million in the second
quarter of fiscal 2018 primarily due to the receipt of interest from a
customer that had been on non-accrual status.
Provision for Income Taxes - The Company recorded income tax
expense of $36.2 million in the second quarter of fiscal 2018, or
24.6 percent of pre-tax income, compared to $23.6 million, or
35.0 percent of pre-tax income, in the second quarter of fiscal 2017.
The decrease in the Company's effective income tax rate is primarily due
to tax reform enacted in the United States. The Company recorded
$1.1 million and $1.5 million of discrete tax benefits in the second
quarter of fiscal 2018 and 2017, respectively, largely related to
favorable share-based compensation tax benefits.
Share Repurchases - The Company deployed cash of $65.0 million to
repurchase 839,013 shares of Common Stock in the second quarter of
fiscal 2018. Share repurchases did not have a material impact on
earnings per share in the second quarter of fiscal 2018.
Six-month Results
The Company reported net sales for the first six months of fiscal 2018
of $3.47 billion and net income of $167.2 million, or $2.21 per diluted
share. This compares with net sales of $2.83 billion and net income of
$63.5 million, or $0.84 per diluted share, in the first six months of
the prior year. Results for the first six months of fiscal 2018 included
after-tax charges and inefficiencies of $19.9 million associated with
restructuring actions in the access equipment and commercial segments as
well as one-time discrete tax benefits of $6.5 million related to the
implementation of tax reform in the United States. Excluding these
items, adjusted1 net income for the first six months of
fiscal 2018 was $180.6 million or $2.38 per diluted share. Results for
the first six months of fiscal 2017 included $13.7 million of after-tax
restructuring-related charges in the access equipment segment. Excluding
this item, adjusted1 net income for the first six months of
fiscal 2017 was $77.2 million, or $1.02 per diluted share. The impact of
higher consolidated sales, improved performance in the defense and fire
& emergency segments and a lower effective tax rate as a result of tax
reform in the United States contributed to the significant improvement
in net income for the first six months of fiscal 2018 compared to the
first six months of fiscal 2017.
Fiscal 2018 Expectations
As a result of the combined impacts of the positive second quarter
results, improved demand outlook for access equipment sales, challenges
related to the ramp up in production in the access equipment segment and
material cost increases, the Company is raising its fiscal 2018 full
year outlook. The Company now expects consolidated sales to be
$7.4 billion to $7.6 billion, an increase of $300 million from the
Company’s previous sales estimate range of $7.1 billion to $7.3 billion.
All of the increase in expected sales is attributable to the access
equipment segment.
The Company now expects its fiscal 2018 consolidated operating income to
be $540 million to $590 million. Excluding anticipated charges and
inefficiencies associated with announced restructuring actions in the
access equipment and commercial segments, the Company expects its fiscal
2018 adjusted1 operating income to be $575 million to
$625 million, compared to its previous estimated adjusted operating
income range of $550 million to $600 million. The increase is
attributable to expected higher sales in the access equipment segment
and improved margins in the defense and fire & emergency segments,
offset in part by expected lower margins in the access equipment segment.
The Company now expects its fiscal 2018 diluted earnings per share to be
in the range of $5.10 to $5.55. Excluding anticipated charges and
inefficiencies associated with announced restructuring actions in the
access equipment and commercial segments as well as the impact of
one-time discrete items associated with tax reform in the U.S., the
Company expects its fiscal 2018 adjusted1 diluted earnings
per share to be in the range of $5.40 to $5.85, compared to the prior
adjusted diluted earnings per share estimated range of $5.00 to $5.45.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash
dividend of $0.24 per share of Common Stock. The dividend will be
payable on May 29, 2018, to shareholders of record as of May 14, 2018.
Conference Call
The Company will comment on its fiscal 2018 second quarter earnings and
its full-year fiscal 2018 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 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 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; 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; the Company’s ability to increase prices
to raise margins or offset higher input costs, including increasing
commodity and other raw material costs due to a sustained economic
recovery, tariffs or other factors; 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 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; 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.
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OSHKOSH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except share and per share amounts; unaudited)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
March 31,
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Six Months Ended
March 31,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Net sales
|
|
|
$
|
1,886.4
|
|
|
$
|
1,618.3
|
|
|
$
|
3,472.7
|
|
|
$
|
2,829.7
|
|
|
Cost of sales
|
|
|
1,551.0
|
|
|
1,357.0
|
|
|
2,895.1
|
|
|
2,368.7
|
|
|
Gross income
|
|
|
335.4
|
|
|
261.3
|
|
|
577.6
|
|
|
461.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
170.3
|
|
|
169.8
|
|
|
328.1
|
|
|
320.8
|
|
|
Amortization of purchased intangibles
|
|
|
9.2
|
|
|
11.1
|
|
|
19.8
|
|
|
23.6
|
|
|
Total operating expenses
|
|
|
179.5
|
|
|
180.9
|
|
|
347.9
|
|
|
344.4
|
|
|
Operating income
|
|
|
155.9
|
|
|
80.4
|
|
|
229.7
|
|
|
116.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(16.1
|
)
|
|
(15.1
|
)
|
|
(31.5
|
)
|
|
(29.8
|
)
|
|
Interest income
|
|
|
8.1
|
|
|
1.0
|
|
|
9.8
|
|
|
1.8
|
|
|
Miscellaneous, net
|
|
|
(0.8
|
)
|
|
1.2
|
|
|
(0.3
|
)
|
|
2.5
|
|
|
Income before income taxes and earnings of unconsolidated affiliates
|
|
|
147.1
|
|
|
67.5
|
|
|
207.7
|
|
|
91.1
|
|
|
Provision for income taxes
|
|
|
36.2
|
|
|
23.6
|
|
|
40.9
|
|
|
28.8
|
|
|
Income before earnings of unconsolidated affiliates
|
|
|
110.9
|
|
|
43.9
|
|
|
166.8
|
|
|
62.3
|
|
|
Equity in earnings (losses) of unconsolidated affiliates
|
|
|
(0.1
|
)
|
|
0.4
|
|
|
0.4
|
|
|
1.2
|
|
|
Net income
|
|
|
$
|
110.8
|
|
|
$
|
44.3
|
|
|
$
|
167.2
|
|
|
$
|
63.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
1.49
|
|
|
$
|
0.59
|
|
|
$
|
2.24
|
|
|
$
|
0.85
|
|
|
Diluted
|
|
|
1.47
|
|
|
0.58
|
|
|
2.21
|
|
|
0.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding
|
|
|
74,519,741
|
|
|
74,696,616
|
|
|
74,685,082
|
|
|
74,486,209
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|
|
Dilutive stock options and other equity-based compensation awards
|
|
|
977,808
|
|
|
1,086,846
|
|
|
1,077,722
|
|
|
1,095,693
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|
|
Diluted weighted-average shares outstanding
|
|
|
75,497,549
|
|
|
75,783,462
|
|
|
75,762,804
|
|
|
75,581,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OSHKOSH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions; unaudited)
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
September 30,
|
|
|
|
|
2018
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
287.9
|
|
|
$
|
447.0
|
|
|
Receivables, net
|
|
|
1,457.3
|
|
|
1,306.3
|
|
|
Inventories, net
|
|
|
1,321.8
|
|
|
1,198.4
|
|
|
Other current assets
|
|
|
86.6
|
|
|
88.1
|
|
|
Total current assets
|
|
|
3,153.6
|
|
|
3,039.8
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
|
Property, plant and equipment
|
|
|
1,210.3
|
|
|
1,188.8
|
|
|
Accumulated depreciation
|
|
|
(751.6
|
)
|
|
(718.9
|
)
|
|
Property, plant and equipment, net
|
|
|
458.7
|
|
|
469.9
|
|
|
Goodwill
|
|
|
1,020.4
|
|
|
1,013.0
|
|
|
Purchased intangible assets, net
|
|
|
490.4
|
|
|
507.8
|
|
|
Other long-term assets
|
|
|
71.4
|
|
|
68.4
|
|
|
Total assets
|
|
|
$
|
5,194.5
|
|
|
$
|
5,098.9
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Revolving credit facilities and current maturities of long-term debt
|
|
|
$
|
8.7
|
|
|
$
|
23.0
|
|
|
Accounts payable
|
|
|
706.0
|
|
|
651.0
|
|
|
Customer advances
|
|
|
566.2
|
|
|
513.4
|
|
|
Payroll-related obligations
|
|
|
154.9
|
|
|
191.8
|
|
|
Other current liabilities
|
|
|
304.0
|
|
|
303.9
|
|
|
Total current liabilities
|
|
|
1,739.8
|
|
|
1,683.1
|
|
|
Long-term debt, less current maturities
|
|
|
818.8
|
|
|
807.9
|
|
|
Other long-term liabilities
|
|
|
286.3
|
|
|
300.5
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
2,349.6
|
|
|
2,307.4
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
5,194.5
|
|
|
$
|
5,098.9
|
|
|
|
|
|
|
|
|
|
|
|
|
OSHKOSH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
March 31,
|
|
|
|
|
2018
|
|
2017
|
|
Operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
$
|
167.2
|
|
|
$
|
63.5
|
|
|
Depreciation and amortization
|
|
|
61.3
|
|
|
64.4
|
|
|
Stock-based compensation expense
|
|
|
13.8
|
|
|
12.2
|
|
|
Deferred income taxes
|
|
|
(21.8
|
)
|
|
1.0
|
|
|
Gain on sale of assets
|
|
|
(0.6
|
)
|
|
(4.2
|
)
|
|
Foreign currency transaction (gains) losses
|
|
|
(0.7
|
)
|
|
0.2
|
|
|
Other non-cash adjustments
|
|
|
1.1
|
|
|
0.5
|
|
|
Changes in operating assets and liabilities
|
|
|
(176.4
|
)
|
|
10.5
|
|
|
Net cash provided by operating activities
|
|
|
43.9
|
|
|
148.1
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
(37.9
|
)
|
|
(28.0
|
)
|
|
Additions to equipment held for rental
|
|
|
(2.9
|
)
|
|
(24.6
|
)
|
|
Proceeds from sale of equipment held for rental
|
|
|
4.4
|
|
|
19.8
|
|
|
Other investing activities
|
|
|
(0.5
|
)
|
|
(0.9
|
)
|
|
Net cash used by investing activities
|
|
|
(36.9
|
)
|
|
(33.7
|
)
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
Proceeds from issuance of debt
|
|
|
13.1
|
|
|
—
|
|
|
Repayments of debt
|
|
|
(17.9
|
)
|
|
(20.0
|
)
|
|
Repurchases of common stock
|
|
|
(136.2
|
)
|
|
(3.0
|
)
|
|
Dividends paid
|
|
|
(35.9
|
)
|
|
(31.3
|
)
|
|
Proceeds from exercise of stock options
|
|
|
12.5
|
|
|
33.2
|
|
|
Net cash used by financing activities
|
|
|
(164.4
|
)
|
|
(21.1
|
)
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
(1.7
|
)
|
|
(1.8
|
)
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(159.1
|
)
|
|
91.5
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
447.0
|
|
|
321.9
|
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
287.9
|
|
|
$
|
413.4
|
|
|
|
|
|
|
|
|
|
|
|
|
OSHKOSH CORPORATION
SEGMENT INFORMATION
(In millions; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
|
$
|
487.2
|
|
|
$
|
—
|
|
|
$
|
487.2
|
|
|
$
|
369.4
|
|
|
$
|
—
|
|
|
$
|
369.4
|
|
|
Telehandlers
|
|
|
234.9
|
|
|
—
|
|
|
234.9
|
|
|
161.6
|
|
|
—
|
|
|
161.6
|
|
|
Other
|
|
|
205.8
|
|
|
—
|
|
|
205.8
|
|
|
192.2
|
|
|
—
|
|
|
192.2
|
|
|
Total access equipment
|
|
|
927.9
|
|
|
—
|
|
|
927.9
|
|
|
723.2
|
|
|
—
|
|
|
723.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
427.8
|
|
|
0.4
|
|
|
428.2
|
|
|
445.7
|
|
|
0.4
|
|
|
446.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
269.1
|
|
|
4.0
|
|
|
273.1
|
|
|
233.5
|
|
|
4.0
|
|
|
237.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
114.6
|
|
|
—
|
|
|
114.6
|
|
|
112.7
|
|
|
—
|
|
|
112.7
|
|
|
Refuse collection
|
|
|
117.8
|
|
|
—
|
|
|
117.8
|
|
|
79.1
|
|
|
—
|
|
|
79.1
|
|
|
Other
|
|
|
29.1
|
|
|
2.4
|
|
|
31.5
|
|
|
22.3
|
|
|
1.9
|
|
|
24.2
|
|
|
Total commercial
|
|
|
261.5
|
|
|
2.4
|
|
|
263.9
|
|
|
214.1
|
|
|
1.9
|
|
|
216.0
|
|
|
Corporate & eliminations
|
|
|
0.1
|
|
|
(6.8
|
)
|
|
(6.7
|
)
|
|
1.8
|
|
|
(6.3
|
)
|
|
(4.5
|
)
|
|
|
|
|
$
|
1,886.4
|
|
|
$
|
—
|
|
|
$
|
1,886.4
|
|
|
$
|
1,618.3
|
|
|
$
|
—
|
|
|
$
|
1,618.3
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended March 31,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
|
$
|
810.7
|
|
|
$
|
—
|
|
|
$
|
810.7
|
|
|
$
|
603.1
|
|
|
$
|
—
|
|
|
$
|
603.1
|
|
|
Telehandlers
|
|
|
364.4
|
|
|
—
|
|
|
364.4
|
|
|
254.9
|
|
|
—
|
|
|
254.9
|
|
|
Other
|
|
|
381.0
|
|
|
—
|
|
|
381.0
|
|
|
354.4
|
|
|
—
|
|
|
354.4
|
|
|
Total access equipment
|
|
|
1,556.1
|
|
|
—
|
|
|
1,556.1
|
|
|
1,212.4
|
|
|
—
|
|
|
1,212.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
|
921.0
|
|
|
0.7
|
|
|
921.7
|
|
|
739.9
|
|
|
0.7
|
|
|
740.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
|
494.0
|
|
|
8.2
|
|
|
502.2
|
|
|
462.6
|
|
|
7.4
|
|
|
470.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
|
226.1
|
|
|
—
|
|
|
226.1
|
|
|
197.1
|
|
|
—
|
|
|
197.1
|
|
|
Refuse collection
|
|
|
219.0
|
|
|
—
|
|
|
219.0
|
|
|
171.3
|
|
|
—
|
|
|
171.3
|
|
|
Other
|
|
|
56.1
|
|
|
4.1
|
|
|
60.2
|
|
|
43.8
|
|
|
3.0
|
|
|
46.8
|
|
|
Total commercial
|
|
|
501.2
|
|
|
4.1
|
|
|
505.3
|
|
|
412.2
|
|
|
3.0
|
|
|
415.2
|
|
|
Corporate & eliminations
|
|
|
0.4
|
|
|
(13.0
|
)
|
|
(12.6
|
)
|
|
2.6
|
|
|
(11.1
|
)
|
|
(8.5
|
)
|
|
|
|
|
$
|
3,472.7
|
|
|
$
|
—
|
|
|
$
|
3,472.7
|
|
|
$
|
2,829.7
|
|
|
$
|
—
|
|
|
$
|
2,829.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
|
|
|
|
|
$
|
97.7
|
|
|
$
|
42.1
|
|
|
$
|
111.5
|
|
|
$
|
66.5
|
|
|
Defense
|
|
|
|
|
|
|
47.8
|
|
|
48.7
|
|
|
113.0
|
|
|
72.5
|
|
|
Fire & emergency
|
|
|
|
|
|
|
36.0
|
|
|
21.8
|
|
|
61.1
|
|
|
38.8
|
|
|
Commercial
|
|
|
|
|
|
|
16.4
|
|
|
6.0
|
|
|
24.7
|
|
|
10.6
|
|
|
Corporate
|
|
|
|
|
|
|
(42.0
|
)
|
|
(38.2
|
)
|
|
(80.6
|
)
|
|
(71.8
|
)
|
|
|
|
|
|
|
|
|
$
|
155.9
|
|
|
$
|
80.4
|
|
|
$
|
229.7
|
|
|
$
|
116.6
|
|
|
|
|
|
|
|
March 31,
|
|
|
2018
|
|
2017
|
|
Period-end backlog:
|
|
|
|
|
|
Access equipment
|
$
|
1,788.8
|
|
|
$
|
737.9
|
|
|
Defense
|
|
1,699.8
|
|
|
1,827.7
|
|
|
Fire & emergency
|
|
1,028.4
|
|
|
1,005.9
|
|
|
Commercial
|
|
424.0
|
|
|
353.8
|
|
|
|
$
|
4,941.0
|
|
|
$
|
3,925.3
|
|
|
|
|
|
|
|
|
|
|
|
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
March 31,
|
|
Six Months Ended
March 31,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Access equipment segment operating income (GAAP)
|
|
|
$
|
97.7
|
|
|
$
|
42.1
|
|
|
$
|
111.5
|
|
|
$
|
66.5
|
|
Costs and inefficiencies related to restructuring actions
|
|
|
5.2
|
|
|
17.2
|
|
|
21.3
|
|
|
17.2
|
|
Adjusted access equipment segment operating income (non-GAAP)
|
|
|
$
|
102.9
|
|
|
$
|
59.3
|
|
|
$
|
132.8
|
|
|
$
|
83.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial segment operating income (GAAP)
|
|
|
$
|
16.4
|
|
|
$
|
6.0
|
|
|
$
|
24.7
|
|
|
$
|
10.6
|
|
Restructuring costs
|
|
|
1.8
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
Adjusted commercial segment operating income (non-GAAP)
|
|
|
$
|
18.2
|
|
|
$
|
6.0
|
|
|
$
|
29.0
|
|
|
$
|
10.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income (GAAP)
|
|
|
$
|
155.9
|
|
|
$
|
80.4
|
|
|
$
|
229.7
|
|
|
$
|
116.6
|
|
Costs and inefficiencies related to restructuring actions
|
|
|
7.0
|
|
|
17.2
|
|
|
25.6
|
|
|
17.2
|
|
Adjusted consolidated operating income (non-GAAP)
|
|
|
$
|
162.9
|
|
|
$
|
97.6
|
|
|
$
|
255.3
|
|
|
$
|
133.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (GAAP)
|
|
|
$
|
36.2
|
|
|
$
|
23.6
|
|
|
$
|
40.9
|
|
|
$
|
28.8
|
|
Income tax benefit of costs and inefficiencies related to
restructuring actions
|
|
|
1.2
|
|
|
3.5
|
|
|
5.7
|
|
|
3.5
|
|
Revaluation of net deferred tax liabilities
|
|
|
—
|
|
|
—
|
|
|
23.9
|
|
|
—
|
|
Repatriation tax
|
|
|
—
|
|
|
—
|
|
|
(17.4
|
)
|
|
—
|
|
Adjusted provision for income taxes (non-GAAP)
|
|
|
$
|
37.4
|
|
|
$
|
27.1
|
|
|
$
|
53.1
|
|
|
$
|
32.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP)
|
|
|
$
|
110.8
|
|
|
$
|
44.3
|
|
|
$
|
167.2
|
|
|
$
|
63.5
|
|
Costs and inefficiencies related to restructuring actions, net of tax
|
|
|
5.8
|
|
|
13.7
|
|
|
19.9
|
|
|
13.7
|
|
Revaluation of net deferred tax liabilities
|
|
|
—
|
|
|
—
|
|
|
(23.9
|
)
|
|
—
|
|
Repatriation tax
|
|
|
—
|
|
|
—
|
|
|
17.4
|
|
|
—
|
|
Adjusted net income (non-GAAP)
|
|
|
$
|
116.6
|
|
|
$
|
58.0
|
|
|
$
|
180.6
|
|
|
$
|
77.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted (GAAP)
|
|
|
$
|
1.47
|
|
|
$
|
0.58
|
|
|
$
|
2.21
|
|
|
$
|
0.84
|
|
Costs and inefficiencies related to restructuring actions, net of tax
|
|
|
0.07
|
|
|
0.18
|
|
|
0.25
|
|
|
0.18
|
|
Revaluation of net deferred tax liabilities
|
|
|
—
|
|
|
—
|
|
|
(0.31
|
)
|
|
—
|
|
Repatriation tax
|
|
|
—
|
|
|
—
|
|
|
0.23
|
|
|
—
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
|
$
|
1.54
|
|
|
$
|
0.76
|
|
|
$
|
2.38
|
|
|
$
|
1.02
|
|
|
|
|
|
|
|
|
|
Fiscal 2018 Expectations
|
|
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Consolidated operating income (GAAP)
|
|
|
$
|
540
|
|
|
$
|
590
|
|
|
Costs and inefficiencies related to restructuring actions
|
|
|
35
|
|
|
35
|
|
|
Adjusted consolidated operating income (non-GAAP)
|
|
|
$
|
575
|
|
|
$
|
625
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted (GAAP)
|
|
|
$
|
5.10
|
|
|
$
|
5.55
|
|
|
Costs and inefficiencies related to restructuring actions, net of tax
|
|
|
0.38
|
|
|
0.38
|
|
|
Revaluation of net deferred tax liabilities
|
|
|
(0.31
|
)
|
|
(0.31
|
)
|
|
Repatriation tax
|
|
|
0.23
|
|
|
0.23
|
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
|
$
|
5.40
|
|
|
$
|
5.85
|
|
____________________________
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/20180426005470/en/
Source: Oshkosh Corporation