Robert G. Bohn
Earnings Conference Call     Chairman, President and Chief Executive Officer
Second Quarter Fiscal 2006   C...
Forward Looking Statements
Our remarks that follow, including answers to your questions and these slides, include
statemen...
Oshkosh Second Quarter 2006 Highlights

• Record Q2 financial results                                 Second Quarter Resul...
Stewart & Stevenson Services, Inc. Auction

                                   • On March 30, 2006,
                      ...
Commercial
• Margin recovery continued in Q2
• Pre-buy due to 2007 diesel engine
  emissions standards change
  accelerate...
Defense
          • Strength of remanufacturing and
            new truck business drove
            exceptional results i...
Fire and Emergency
                     • Anticipated dip in earnings
                       in Q2
                       ...
Consolidated Results
Dollars in millions
                        Second Quarter                 Comments
                 ...
Fire and Emergency
Dollars in millions
                        Second Quarter                 Comments
                   ...
Defense
Dollars in millions
                                                 Comments
                         Second Quar...
Commercial
Dollars in millions
                                                     Comments
                         Seco...
Fiscal 2006 Estimates
    Sales of $3.3 - $3.4 Billion, Up 11.5% - 15%

                   • Fire and emergency sales
    ...
Fiscal 2006 Estimates
     Operating Income of $307.0 - $320.0 Million,
                    Up 15% to 20%
               •...
Fiscal 2006 Estimates
                        Other Estimates
                      (Dollars in millions)
                ...
Fiscal 2006 Estimates

• Annual EPS estimate range of $2.55 to $2.65,
  up 17.0% to 21.6%

• Third quarter EPS of $0.53 to...
Fiscal 2006 Estimates
                  • Capital spending expected
                    to approximate $64 million

      ...
oshkosh   Q206_Earnings_Presentation
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oshkosh Q206_Earnings_Presentation

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oshkosh Q206_Earnings_Presentation

  1. 1. Robert G. Bohn Earnings Conference Call Chairman, President and Chief Executive Officer Second Quarter Fiscal 2006 Charles L. Szews May 2, 2006 Executive Vice President and Chief Financial Officer
  2. 2. Forward Looking Statements Our remarks that follow, including answers to your questions and these slides, include statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. All of our statements, other than statements of historical fact, including statements regarding Oshkosh Truck’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of words such as “expect,” “intend,” “estimates,” “anticipate,” “believe,” “should,” “plans,” or similar words. We cannot give any assurance that such expectations will prove to be correct. Some factors that could cause actual results to differ materially from our expectations include the accuracy of assumptions made with respect to our expectations for fiscal 2006 and beyond, the Company’s ability to continue the turnaround of the business of the Geesink Norba Group sufficiently to support its valuation resulting in no non-cash impairment charge for Geesink Norba Group goodwill, the Company’s ability to increase its operating income margins at McNeilus, the ability of the Company to recover steel and component cost increases from its customers, risks associated with a three-phase enterprise resource planning system implementation at McNeilus, the expected level of U.S. Department of Defense procurement of the Company’s products and services, the cyclical nature of the Company’s commercial and fire and emergency markets, risks related to reductions in government expenditures, the uncertainty of government contracts, the challenges of identifying, completing and integrating acquisitions, the success of the launch of the Revolution® drum, and risks associated with international operations. Additional information concerning these and other factors is contained in our filings with the SEC, including our Form 8-K filed May 2, 2006. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward-looking statements. 2
  3. 3. Oshkosh Second Quarter 2006 Highlights • Record Q2 financial results Second Quarter Results – Sales increased 25.6% $1,000 $90 $79.7 $900 Operating Income (in millions) $80 – Operating income grew 27.3% $800 $844.8 $62.6 $70 Sales (in millions) – EPS increased 28.8% $700 $60 $672.4 $600 $35.1 $50 – Exceeded previous estimates $500 $518.2 $40 $400 • Re-affirmed fiscal 2006 $30 $300 EPS estimate range of $20 $200 $10 $100 $2.55 - $2.65 $0 $0 2004 2005 2006 3
  4. 4. Stewart & Stevenson Services, Inc. Auction • On March 30, 2006, Oshkosh acknowledged participation in auction • Oshkosh cannot respond to questions on the auction or closely related matters Stewart & Stevenson manufactures the U.S. Army’s Family of Medium Tactical Vehicles. 4
  5. 5. Commercial • Margin recovery continued in Q2 • Pre-buy due to 2007 diesel engine emissions standards change accelerated in Q2 – Expect segment sales to be strong through Q1 of fiscal 2007 • Implementation of enterprise resource planning system The new Oshkosh S-Series Front-Discharge continuing at measured pace Concrete Mixer with Revolution® drum was introduced at the World of Concrete show in – Not expected to cause production January 2006. issues 5
  6. 6. Defense • Strength of remanufacturing and new truck business drove exceptional results in Q2 – But, struggle continues to locate vehicle carcasses for remanufacturing • No award made yet on LVSR contract • Bidding Australian Defence Forces contract in May 2006 6
  7. 7. Fire and Emergency • Anticipated dip in earnings in Q2 – Airport product sales heavily weighted to second half • Component issues also delayed sales into Q3 • Successful FDIC fire apparatus show – Introduced 100’ aluminum ladder • Strong carrier and wrecker orders 7
  8. 8. Consolidated Results Dollars in millions Second Quarter Comments 2005 2006 • Defense drove results Net Sales $844.8 $672.4 despite $14.1 million MTVR margin % Growth 25.6% 29.7% adjustment in 2005 Operating Income $ 79.7 $ 62.6 • Commercial results % Margin 9.4% 9.3% also up sharply % Growth 27.3% 78.5% • Fire and emergency Earnings Per Share $ 0.67 $ 0.52 dip expected to be % Growth 28.8% 67.7% temporary 8
  9. 9. Fire and Emergency Dollars in millions Second Quarter Comments 2005 2006 • Sharply lower airport product sales, as Net Sales $221.3 $213.2 anticipated % Growth 3.8% 57.2% • Two component Operating Income $ 17.9 $ 19.0 issues delayed % Margin 8.1% 8.9% revenue recognition % Growth (5.9)% 69.5% • Recent price increase spurred orders • Backlog up 6.1% 9
  10. 10. Defense Dollars in millions Comments Second Quarter 2005 2006 • Remanufactured and new truck sales nearly Net Sales $334.2 $209.6 doubled % Growth 59.4% 24.7% • MTVR margin Operating Income $ 65.8 $ 49.4 adjustment of $14.1 % Margin 19.7% 23.6% million in Q2 of 2005 % Growth 33.2% 114.4% • Backlog up 17.0% 10
  11. 11. Commercial Dollars in millions Comments Second Quarter 2005 2006 • Sales benefiting from pre-buy Net Sales $299.5 $255.3 • European refuse % Growth 17.3% 17.2% profitable in Q2; $1.5 Operating Income $ 15.3 $ 6.5 million operating loss in Q2 of 2005 % Margin 5.1% 2.5% • Price increases % Growth 137.5% (31.6)% benefiting earnings • Backlog up 35.7% 11
  12. 12. Fiscal 2006 Estimates Sales of $3.3 - $3.4 Billion, Up 11.5% - 15% • Fire and emergency sales expected to rise by low teens percentage • Defense sales expected to grow 22.5% to 27.0% • Commercial sales expected to rise by low single digits percentage 12
  13. 13. Fiscal 2006 Estimates Operating Income of $307.0 - $320.0 Million, Up 15% to 20% • Anticipate flat margins in fire and emergency • Expect defense margins to decline about 200 basis points – No MTVR margin adjustments expected in 2006 • Expect commercial margins to double – European refuse expected to be modestly profitable – U.S. margins expected to be up over 100 basis points 13
  14. 14. Fiscal 2006 Estimates Other Estimates (Dollars in millions) Fiscal 2006 Estimates Interest expense and other $0.5 (income) Effective tax rate 38.5% Minority interest $0.5 (expense) Equity in earnings $2.0 Average shares outstanding 75,000,000 14
  15. 15. Fiscal 2006 Estimates • Annual EPS estimate range of $2.55 to $2.65, up 17.0% to 21.6% • Third quarter EPS of $0.53 to $0.57 compared to $0.52 in third quarter of fiscal 2005 15
  16. 16. Fiscal 2006 Estimates • Capital spending expected to approximate $64 million • Estimated balances at September 30,2006 – Debt of $20.0 - $25.0 million – Cash of $200.0 - $225.0 million 16

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