Raises Fiscal 2019 Estimated EPS Range
Declares Quarterly Cash Dividend of $0.27 Per Share
OSHKOSH, Wis.--(BUSINESS WIRE)--
Oshkosh Corporation (NYSE: OSK) today reported fiscal 2019 second
quarter net income of $128.5 million, or $1.82 per diluted share,
compared to $110.8 million, or $1.47 per diluted share, in the second
quarter of fiscal 2018. Results for the second quarter of fiscal 2018
included after-tax charges of $5.8 million associated with restructuring
actions in the access equipment and commercial segments. Excluding these
charges, fiscal 2018 second quarter adjusted1 net income was
$116.6 million, or $1.54 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 second quarter of fiscal 2019 increased
5.5 percent to $1.99 billion compared to the second quarter of fiscal
2018 due to higher access equipment, defense and fire & emergency
segment sales. The commercial segment reported lower sales in the second
quarter of fiscal 2019 as a result of unusually severe winter weather,
which caused disruptions at one of its manufacturing facilities.
Consolidated sales for the second quarter of fiscal 2019 without the
adoption of the new revenue recognition standard would have been
$1.97 billion, an increase of 4.7 percent compared to the second quarter
of fiscal 2018.
Consolidated operating income in the second quarter of fiscal 2019
increased 12.3 percent to $175.6 million, or 8.8 percent of sales,
compared to $156.4 million, or 8.3 percent of sales, in the second
quarter of fiscal 2018. This increase was primarily a result of improved
access equipment segment results and the absence of
restructuring-related charges, offset in part by lower commercial
segment results. Consolidated operating income for the second quarter of
fiscal 2019 without the adoption of the new revenue recognition standard
would have been $168.8 million, or 8.5 percent of sales. Excluding
$7.0 million of pre-tax charges and operating inefficiencies related to
restructuring actions in the access equipment and commercial segments,
adjusted1 operating income in the second quarter of fiscal
2018 was $163.4 million, or 8.7 percent of sales.
“We are pleased to report another quarter of strong performance
highlighted by growth in revenue, operating income and earnings per
share,” said Wilson R. Jones, president and chief executive officer of
Oshkosh Corporation. “We delivered increased sales in three of our four
segments, leading to earnings per share of $1.82, which exceeded our
fiscal 2018 second quarter results.
“This quarter truly exemplifies why we are a different integrated global
industrial. Our diverse end market exposure coupled with our integrated
operations and supply chain allowed us to overcome a number of
challenges, including a significant weather-related disruption in our
commercial segment to deliver higher consolidated year-over-year sales
and earnings.
“As a result of our continued strong execution, healthy backlogs and
solid outlook for our markets, we are increasing our expectations for
fiscal 2019 earnings per share to be in a range of $7.40 to $7.70 or
$7.50 to $7.80 on an adjusted1 earnings per share basis,”
said Jones.
Factors affecting second quarter results for the Company’s business
segments included:
Access Equipment - Access equipment segment net sales in the
second quarter of fiscal 2019 increased 6.4 percent to $987.6 million.
The increase in sales was due to increased sales volume and higher
pricing in response to higher material costs. Sales grew in all regions
in the second quarter of fiscal 2019, led by the Pacific Rim.
Access equipment segment operating income in the second quarter of
fiscal 2019 increased 22.7 percent to $119.8 million, or 12.1 percent of
sales, compared to $97.6 million, or 10.5 percent of sales, in the
second quarter of fiscal 2018. The increase in operating income was
primarily due to improved pricing, the impact of higher sales volume,
the absence of restructuring-related expenses and improved operational
efficiencies, including fewer supplier disruptions, offset in part by
higher material costs. The second quarter of fiscal 2018 also included a
benefit of $7.7 million related to the recognition of deferred margin
upon the receipt of cash from a customer on the cost recovery method of
accounting.
Access equipment segment results for the second quarter of fiscal 2018
included pre-tax charges and operating inefficiencies associated with
restructuring actions of $5.2 million. Excluding these charges and
inefficiencies, adjusted1 operating income in the second
quarter of fiscal 2018 was $102.8 million, or 11.1 percent of sales.
Defense - Defense segment net sales for the second quarter of
fiscal 2019 increased 13.7 percent to $486.7 million. The increase in
sales was due to the continued ramp up of sales to the U.S. government
under the Joint Light Tactical Vehicle program and changes associated
with the application of the new revenue recognition standard. Defense
segment sales for the second quarter of fiscal 2019 without the adoption
of the new revenue recognition standard would have been $472.8 million,
an increase of 10.4 percent compared to the second quarter of fiscal
2018.
Defense segment operating income in the second quarter of fiscal 2019
increased 7.9 percent to $52.2 million, or 10.7 percent of sales,
compared to $48.4 million, or 11.3 percent of sales, in the second
quarter of fiscal 2018. The increase in operating income was due to
changes associated with the application of the new revenue recognition
standard, including an increase in contract margins on the Family of
Heavy Tactical Vehicle program upon the receipt of orders in the second
quarter of fiscal 2019, and the impact of higher sales volume, offset in
part by an adverse product mix and costs to start up a manufacturing
facility in Tennessee. Defense segment operating income for the second
quarter of fiscal 2019 without the adoption of the new revenue
recognition standard would have been $44.8 million, or 9.5 percent of
sales.
Fire & Emergency - Fire & emergency segment net sales for the
second quarter of fiscal 2019 increased 3.7 percent to $283.2 million as
a result of the sale of higher content units and improved pricing. Fire
& emergency segment sales for the second quarter of fiscal 2019 without
the adoption of the new revenue recognition standard would have been
$286.1 million, an increase of 4.8 percent compared to the second
quarter of fiscal 2018.
Fire & emergency segment operating income in the second quarter of
fiscal 2019 increased 1.7 percent to $36.6 million, or 12.9 percent of
sales, compared to $36.0 million, or 13.2 percent of sales, in the
second quarter of fiscal 2018. Improved pricing in the quarter was
almost completely offset by higher material costs. Fire & emergency
segment operating income for the second quarter of fiscal 2019 without
the adoption of the new revenue recognition standard would have been
$38.0 million, or 13.3 percent of sales.
Commercial - Commercial segment net sales for the second quarter
of fiscal 2019 decreased 9.9 percent to $237.9 million on lower
deliveries as severe winter weather impacted one of its manufacturing
facilities, including a partial roof collapse due to extreme snow
accumulation. Commercial segment sales for the second quarter of fiscal
2019 without the adoption of the new revenue recognition standard would
have been $233.7 million, a decrease of 11.4 percent compared to the
second quarter of fiscal 2018.
Commercial segment operating income in the second quarter of fiscal 2019
decreased 52.4 percent to $7.8 million, or 3.3 percent of sales,
compared to $16.4 million, or 6.2 percent of sales, in the second
quarter of fiscal 2018. The decrease in operating income was largely a
result of the impact of the weather-related production disruptions.
Excluding restructuring-related charges of $1.8 million in the prior
year, adjusted1 operating income was $18.2 million, or 6.9
percent of sales, in the second quarter of fiscal 2018. Commercial
segment operating income for the second quarter of fiscal 2019 without
the adoption of the new revenue recognition standard would have been
$6.6 million, or 2.8 percent of sales.
Corporate - Corporate operating costs in the second quarter of
fiscal 2019 decreased $1.2 million to $40.8 million.
Interest Expense Net of Interest Income - Interest expense net of
interest income in the second quarter of fiscal 2019 increased
$3.7 million to $11.7 million primarily due to the receipt of interest
income in the second quarter of fiscal 2018 from a customer that had
been on non-accrual status.
Provision for Income Taxes - The Company recorded income tax
expense in the second quarter of fiscal 2019 of $36.2 million, or
21.9 percent of pre-tax income, compared to $36.2 million, or
24.6 percent of pre-tax income, in the second quarter of fiscal 2018.
The decrease in the Company's effective income tax rate is primarily due
to tax reform enacted in the United States. The Company recorded
$0.2 million and $1.1 million of discrete tax benefits in the second
quarter of fiscal 2019 and 2018, respectively.
Share Repurchases -The Company repurchased 313,626 shares of
Common Stock for $25.0 million in the second quarter of fiscal 2019.
Share repurchases completed during the previous twelve months benefited
earnings per share in the second quarter of fiscal 2019 by $0.12
compared to the second quarter of fiscal 2018.
Six-month Results
The Company reported net sales for the first six months of fiscal 2019
of $3.79 billion and net income of $237.5 million, or $3.33 per diluted
share. This compares with net sales of $3.47 billion and net income of
$167.2 million, or $2.21 per diluted share, in the first six months of
2018. Results for the first six months of fiscal 2019 included a
$7.0 million tax charge related to an adjustment of the repatriation tax
required under tax legislation passed in the United States in December
2017. Excluding this item, adjusted1 net income for the first
six months of fiscal 2019 was $244.5 million, or $3.43 per diluted
share. 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. The impact of
higher consolidated sales, the absence of restructuring-related charges
and the application of the new revenue recognition standard contributed
to the improvement in net income for the first six months of fiscal 2019
compared to the first six months of fiscal 2018. Share repurchases
completed during the previous twelve months benefited earnings per share
in the first six months of fiscal 2019 by $0.19 compared to the first
six months of fiscal 2018. The adoption of the new revenue recognition
standard benefited consolidated sales and operating income for the first
six months of fiscal 2019 by $53.6 million and $32.0 million,
respectively.
Fiscal 2019 Expectations
The Company is raising its fiscal 2019 full year outlook. The Company
now expects consolidated sales to be $8.20 billion to $8.30 billion, an
increase from the Company’s previous sales estimate range of
$8.05 billion to $8.25 billion. The increase reflects higher sales
expectations for the access equipment and fire & emergency segments,
offset in part by lower commercial segment sales expectations as a
result of the weather-related production disruptions that occurred in
the second quarter of fiscal 2019.
The Company now expects its fiscal 2019 consolidated operating income to
be $725 million to $755 million, an increase from the Company’s previous
sales estimate range of $685 million to $735 million. The expected
improvement in consolidated operating income reflects the higher
consolidated sales estimates as well as expected improved performance in
the access equipment segment, offset in part by expected lower
commercial segment results.
The Company now expects its fiscal 2019 diluted earnings per share to be
in the range of $7.40 to $7.70. Excluding the impact of discrete items
associated with tax legislation in the U.S., the Company expects its
fiscal 2019 adjusted1 diluted earnings per share to be in the
range of $7.50 to $7.80 compared to its prior adjusted1 diluted
earnings per share estimated range of $7.00 to $7.50.
Dividend Announcement
The Company’s Board of Directors today declared a quarterly cash
dividend of $0.27 per share of Common Stock. The dividend will be
payable on May 30, 2019, to shareholders of record as of May 16, 2019.
Conference Call
The Company will host a conference call at 9:00 a.m. EDT this morning to
discuss its fiscal 2019 second quarter results and its full-year fiscal
2019 outlook. 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
simultaneously webcast. To access the webcast, 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 freight 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;
performance issues with key suppliers or subcontractors; 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
March 31,
|
|
Six Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Net sales
|
|
$
|
1,990.2
|
|
|
$
|
1,886.4
|
|
|
$
|
3,793.6
|
|
|
$
|
3,472.7
|
|
|
Cost of sales
|
|
1,632.3
|
|
|
1,550.4
|
|
|
3,107.4
|
|
|
2,893.7
|
|
|
Gross income
|
|
357.9
|
|
|
336.0
|
|
|
686.2
|
|
|
579.0
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
173.0
|
|
|
170.4
|
|
|
331.6
|
|
|
328.3
|
|
|
Amortization of purchased intangibles
|
|
9.3
|
|
|
9.2
|
|
|
18.5
|
|
|
19.8
|
|
|
Total operating expenses
|
|
182.3
|
|
|
179.6
|
|
|
350.1
|
|
|
348.1
|
|
|
Operating income
|
|
175.6
|
|
|
156.4
|
|
|
336.1
|
|
|
230.9
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(13.7
|
)
|
|
(16.1
|
)
|
|
(27.4
|
)
|
|
(31.5
|
)
|
|
Interest income
|
|
2.0
|
|
|
8.1
|
|
|
4.2
|
|
|
9.8
|
|
|
Miscellaneous, net
|
|
1.2
|
|
|
(1.3
|
)
|
|
—
|
|
|
(1.5
|
)
|
|
Income before income taxes and earnings (losses)
of unconsolidated affiliates
|
|
165.1
|
|
|
147.1
|
|
|
312.9
|
|
|
207.7
|
|
|
Provision for income taxes
|
|
36.2
|
|
|
36.2
|
|
|
75.9
|
|
|
40.9
|
|
|
Income before earnings (losses) of unconsolidated affiliates
|
|
128.9
|
|
|
110.9
|
|
|
237.0
|
|
|
166.8
|
|
|
Equity in earnings (losses) of unconsolidated affiliates
|
|
(0.4
|
)
|
|
(0.1
|
)
|
|
0.5
|
|
|
0.4
|
|
|
Net income
|
|
$
|
128.5
|
|
|
$
|
110.8
|
|
|
$
|
237.5
|
|
|
$
|
167.2
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.84
|
|
|
$
|
1.49
|
|
|
$
|
3.37
|
|
|
$
|
2.24
|
|
|
Diluted
|
|
1.82
|
|
|
1.47
|
|
|
3.33
|
|
|
2.21
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares outstanding
|
|
70,042,761
|
|
|
74,519,741
|
|
|
70,761,437
|
|
|
74,685,082
|
|
|
Dilutive equity-based compensation awards
|
|
714,033
|
|
|
977,808
|
|
|
675,685
|
|
|
1,077,722
|
|
|
Diluted weighted-average shares outstanding
|
|
70,756,794
|
|
|
75,497,549
|
|
|
71,437,122
|
|
|
75,762,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OSHKOSH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions; unaudited)
|
|
|
|
|
|
|
|
March 31,
|
|
September 30,
|
|
|
2019
|
|
2018
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
321.9
|
|
|
$
|
454.6
|
|
|
Receivables, net
|
|
1,077.8
|
|
|
1,521.6
|
|
|
Unbilled receivables, net
|
|
384.5
|
|
|
—
|
|
|
Inventories, net
|
|
1,503.5
|
|
|
1,227.7
|
|
|
Other current assets
|
|
82.0
|
|
|
66.0
|
|
|
Total current assets
|
|
3,369.7
|
|
|
3,269.9
|
|
|
Property, plant and equipment:
|
|
|
|
|
|
Property, plant and equipment
|
|
1,277.5
|
|
|
1,222.7
|
|
|
Accumulated depreciation
|
|
(773.5
|
)
|
|
(741.6
|
)
|
|
Property, plant and equipment, net
|
|
504.0
|
|
|
481.1
|
|
|
Goodwill
|
|
1,001.6
|
|
|
1,007.9
|
|
|
Purchased intangible assets, net
|
|
450.9
|
|
|
469.4
|
|
|
Other long-term assets
|
|
143.2
|
|
|
65.9
|
|
|
Total assets
|
|
$
|
5,469.4
|
|
|
$
|
5,294.2
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Revolving credit facilities and current maturities of long-term debt
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Accounts payable
|
|
825.4
|
|
|
776.9
|
|
|
Customer advances
|
|
497.8
|
|
|
444.9
|
|
|
Payroll-related obligations
|
|
142.5
|
|
|
192.5
|
|
|
Other current liabilities
|
|
344.4
|
|
|
275.8
|
|
|
Total current liabilities
|
|
1,810.1
|
|
|
1,690.1
|
|
|
Long-term debt, less current maturities
|
|
818.5
|
|
|
818.0
|
|
|
Other long-term liabilities
|
|
341.1
|
|
|
272.6
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Shareholders’ equity
|
|
2,499.7
|
|
|
2,513.5
|
|
|
Total liabilities and shareholders’ equity
|
|
$
|
5,469.4
|
|
|
$
|
5,294.2
|
|
|
|
|
|
|
|
|
|
|
|
OSHKOSH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions; unaudited)
|
|
|
|
|
|
Six Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
Operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
237.5
|
|
|
$
|
167.2
|
|
|
Depreciation and amortization
|
|
57.1
|
|
|
61.3
|
|
|
Stock-based compensation expense
|
|
15.3
|
|
|
13.8
|
|
|
Deferred income taxes
|
|
3.4
|
|
|
(21.8
|
)
|
|
(Gain) loss on sale of assets
|
|
0.7
|
|
|
(0.6
|
)
|
|
Foreign currency transaction (gains) losses
|
|
1.7
|
|
|
(0.7
|
)
|
|
Other non-cash adjustments
|
|
(0.5
|
)
|
|
1.1
|
|
|
Changes in operating assets and liabilities
|
|
(162.2
|
)
|
|
(176.4
|
)
|
|
Net cash provided by operating activities
|
|
153.0
|
|
|
43.9
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
(50.6
|
)
|
|
(37.9
|
)
|
|
Additions to equipment held for rental
|
|
(12.2
|
)
|
|
(2.9
|
)
|
|
Proceeds from sale of equipment held for rental
|
|
6.6
|
|
|
4.4
|
|
|
Other investing activities
|
|
(0.1
|
)
|
|
(0.5
|
)
|
|
Net cash used by investing activities
|
|
(56.3
|
)
|
|
(36.9
|
)
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
Proceeds from issuance of debt
|
|
—
|
|
|
13.1
|
|
|
Repayments of debt
|
|
—
|
|
|
(17.9
|
)
|
|
Repurchases of Common Stock
|
|
(202.3
|
)
|
|
(136.2
|
)
|
|
Dividends paid
|
|
(38.3
|
)
|
|
(35.9
|
)
|
|
Proceeds from exercise of stock options
|
|
8.6
|
|
|
12.5
|
|
|
Net cash used by financing activities
|
|
(232.0
|
)
|
|
(164.4
|
)
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
2.6
|
|
|
(1.7
|
)
|
|
Decrease in cash and cash equivalents
|
|
(132.7
|
)
|
|
(159.1
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
454.6
|
|
|
447.0
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
321.9
|
|
|
$
|
287.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OSHKOSH CORPORATION
SEGMENT INFORMATION
(In millions; unaudited)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2019
|
|
2018
|
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
$
|
463.5
|
|
|
$
|
—
|
|
|
$
|
463.5
|
|
|
$
|
487.2
|
|
|
$
|
—
|
|
|
$
|
487.2
|
|
|
Telehandlers
|
|
319.5
|
|
|
—
|
|
|
319.5
|
|
|
234.9
|
|
|
—
|
|
|
234.9
|
|
|
Other
|
|
204.6
|
|
|
—
|
|
|
204.6
|
|
|
205.8
|
|
|
—
|
|
|
205.8
|
|
|
Total access equipment
|
|
987.6
|
|
|
—
|
|
|
987.6
|
|
|
927.9
|
|
|
—
|
|
|
927.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
486.2
|
|
|
0.5
|
|
|
486.7
|
|
|
427.8
|
|
|
0.4
|
|
|
428.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
279.0
|
|
|
4.2
|
|
|
283.2
|
|
|
269.1
|
|
|
4.0
|
|
|
273.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
115.3
|
|
|
—
|
|
|
115.3
|
|
|
114.6
|
|
|
—
|
|
|
114.6
|
|
|
Refuse collection
|
|
92.0
|
|
|
—
|
|
|
92.0
|
|
|
117.8
|
|
|
—
|
|
|
117.8
|
|
|
Other
|
|
29.8
|
|
|
0.8
|
|
|
30.6
|
|
|
29.1
|
|
|
2.4
|
|
|
31.5
|
|
|
Total commercial
|
|
237.1
|
|
|
0.8
|
|
|
237.9
|
|
|
261.5
|
|
|
2.4
|
|
|
263.9
|
|
|
Corporate & eliminations
|
|
0.3
|
|
|
(5.5
|
)
|
|
(5.2
|
)
|
|
0.1
|
|
|
(6.8
|
)
|
|
(6.7
|
)
|
|
|
$
|
1,990.2
|
|
|
$
|
—
|
|
|
$
|
1,990.2
|
|
|
$
|
1,886.4
|
|
|
$
|
—
|
|
|
$
|
1,886.4
|
|
|
|
|
|
|
Six Months Ended March 31,
|
|
|
2019
|
|
2018
|
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
External
Customers
|
|
Inter-
segment
|
|
Net
Sales
|
|
Access equipment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerial work platforms
|
|
$
|
801.2
|
|
|
$
|
—
|
|
|
$
|
801.2
|
|
|
$
|
810.7
|
|
|
$
|
—
|
|
|
$
|
810.7
|
|
|
Telehandlers
|
|
589.0
|
|
|
—
|
|
|
589.0
|
|
|
364.4
|
|
|
—
|
|
|
364.4
|
|
|
Other
|
|
423.9
|
|
|
—
|
|
|
423.9
|
|
|
381.0
|
|
|
—
|
|
|
381.0
|
|
|
Total access equipment
|
|
1,814.1
|
|
|
—
|
|
|
1,814.1
|
|
|
1,556.1
|
|
|
—
|
|
|
1,556.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense
|
|
950.0
|
|
|
0.8
|
|
|
950.8
|
|
|
921.0
|
|
|
0.7
|
|
|
921.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire & emergency
|
|
570.2
|
|
|
8.5
|
|
|
578.7
|
|
|
494.0
|
|
|
8.2
|
|
|
502.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concrete placement
|
|
197.0
|
|
|
—
|
|
|
197.0
|
|
|
226.1
|
|
|
—
|
|
|
226.1
|
|
|
Refuse collection
|
|
201.2
|
|
|
—
|
|
|
201.2
|
|
|
219.0
|
|
|
—
|
|
|
219.0
|
|
|
Other
|
|
60.5
|
|
|
1.4
|
|
|
61.9
|
|
|
56.1
|
|
|
4.1
|
|
|
60.2
|
|
|
Total commercial
|
|
458.7
|
|
|
1.4
|
|
|
460.1
|
|
|
501.2
|
|
|
4.1
|
|
|
505.3
|
|
|
Corporate & eliminations
|
|
0.6
|
|
|
(10.7
|
)
|
|
(10.1
|
)
|
|
0.4
|
|
|
(13.0
|
)
|
|
(12.6
|
)
|
|
|
$
|
3,793.6
|
|
|
$
|
—
|
|
|
$
|
3,793.6
|
|
|
$
|
3,472.7
|
|
|
$
|
—
|
|
|
$
|
3,472.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Six Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
Access equipment
|
|
$
|
119.8
|
|
|
$
|
97.6
|
|
|
$
|
186.2
|
|
|
$
|
111.3
|
|
|
Defense
|
|
52.2
|
|
|
48.4
|
|
|
123.3
|
|
|
114.2
|
|
|
Fire & emergency
|
|
36.6
|
|
|
36.0
|
|
|
76.5
|
|
|
61.3
|
|
|
Commercial
|
|
7.8
|
|
|
16.4
|
|
|
26.5
|
|
|
24.7
|
|
|
Corporate
|
|
(40.8
|
)
|
|
(42.0
|
)
|
|
(76.4
|
)
|
|
(80.6
|
)
|
|
|
$
|
175.6
|
|
|
$
|
156.4
|
|
|
$
|
336.1
|
|
|
$
|
230.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
2019
|
|
2018
|
|
Period-end backlog:
|
|
|
|
|
|
Access equipment
|
|
$
|
1,548.2
|
|
|
$
|
1,788.8
|
|
Defense
|
|
3,087.9
|
|
|
1,699.8
|
|
Fire & emergency
|
|
1,093.9
|
|
|
1,028.4
|
|
Commercial
|
|
448.9
|
|
|
424.0
|
|
|
$
|
6,178.9
|
|
|
$
|
4,941.0
|
|
|
|
|
|
|
|
|
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
March 31,
|
|
Six Months Ended
March 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Access equipment segment operating income (GAAP)
|
|
$
|
119.8
|
|
|
$
|
97.6
|
|
|
$
|
186.2
|
|
|
$
|
111.3
|
|
|
Costs and inefficiencies related to restructuring actions
|
|
—
|
|
|
5.2
|
|
|
—
|
|
|
21.3
|
|
|
Adjusted access equipment segment operating income (non-GAAP)
|
|
$
|
119.8
|
|
|
$
|
102.8
|
|
|
$
|
186.2
|
|
|
$
|
132.6
|
|
|
|
|
|
|
|
|
|
|
|
Commercial segment operating income (GAAP)
|
|
$
|
7.8
|
|
|
$
|
16.4
|
|
|
$
|
26.5
|
|
|
$
|
24.7
|
|
|
Restructuring costs
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
4.3
|
|
|
Adjusted commercial segment operating income (non-GAAP)
|
|
$
|
7.8
|
|
|
$
|
18.2
|
|
|
$
|
26.5
|
|
|
$
|
29.0
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income (GAAP)
|
|
$
|
175.6
|
|
|
$
|
156.4
|
|
|
$
|
336.1
|
|
|
$
|
230.9
|
|
|
Costs and inefficiencies related to restructuring actions
|
|
—
|
|
|
7.0
|
|
|
—
|
|
|
25.6
|
|
|
Adjusted consolidated operating income (non-GAAP)
|
|
$
|
175.6
|
|
|
$
|
163.4
|
|
|
$
|
336.1
|
|
|
$
|
256.5
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes (GAAP)
|
|
$
|
36.2
|
|
|
$
|
36.2
|
|
|
$
|
75.9
|
|
|
$
|
40.9
|
|
|
Income tax benefit of costs and inefficiencies related to
restructuring actions
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
5.7
|
|
|
Revaluation of net deferred tax liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.9
|
|
|
Repatriation tax
|
|
—
|
|
|
—
|
|
|
(7.0
|
)
|
|
(17.4
|
)
|
|
Adjusted provision for income taxes (non-GAAP)
|
|
$
|
36.2
|
|
|
$
|
37.4
|
|
|
$
|
68.9
|
|
|
$
|
53.1
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP)
|
|
$
|
128.5
|
|
|
$
|
110.8
|
|
|
$
|
237.5
|
|
|
$
|
167.2
|
|
|
Costs and inefficiencies related to restructuring actions, net of tax
|
|
—
|
|
|
5.8
|
|
|
—
|
|
|
19.9
|
|
|
Revaluation of net deferred tax liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.9
|
)
|
|
Repatriation tax
|
|
—
|
|
|
—
|
|
|
7.0
|
|
|
17.4
|
|
|
Adjusted net income (non-GAAP)
|
|
$
|
128.5
|
|
|
$
|
116.6
|
|
|
$
|
244.5
|
|
|
$
|
180.6
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share-diluted (GAAP)
|
|
$
|
1.82
|
|
|
$
|
1.47
|
|
|
$
|
3.33
|
|
|
$
|
2.21
|
|
|
Costs and inefficiencies related to restructuring actions, net of tax
|
|
—
|
|
|
0.07
|
|
|
—
|
|
|
0.25
|
|
|
Revaluation of net deferred tax liabilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.31
|
)
|
|
Repatriation tax
|
|
—
|
|
|
—
|
|
|
0.10
|
|
|
0.23
|
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
$
|
1.82
|
|
|
$
|
1.54
|
|
|
$
|
3.43
|
|
|
$
|
2.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal 2019 Expectations
|
|
|
Low
|
|
High
|
|
|
|
|
|
|
Earnings per share-diluted (GAAP)
|
|
$
|
7.40
|
|
|
$
|
7.70
|
|
Repatriation tax adjustment
|
|
0.10
|
|
|
0.10
|
|
Adjusted earnings per share-diluted (non-GAAP)
|
|
$
|
7.50
|
|
|
$
|
7.80
|
|
|
|
|
|
|
|
|
_____________________________________
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/20190430005346/en/
Financial:
Patrick Davidson
Sr. Vice President, Investor
Relations
920.966.5939
Media:
Bryan Brandt
Sr.
Vice President and Chief Marketing Officer
920.966.5982
Source: Oshkosh Corporation