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oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
oshkosh   Q208_Slides
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oshkosh Q208_Slides

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  • 1. Earnings Conference Call Second Quarter Fiscal 2008 May 1, 2008 Robert G. Bohn Chairman and Chief Executive Officer Charles L. Szews President and Chief Operating Officer David M. Sagehorn Executive Vice President and Chief Financial Officer Patrick N. Davidson Vice President of Investor Relations
  • 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 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 presentation, 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 Company’s ability to turn around its Geesink Norba Group business sufficiently to support its current valuation resulting in no impairment charge; the consequences of financial leverage associated with the JLG acquisition; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a recession, which many believe the U.S. has already entered; the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof; risks related to reductions in government expenditures and the uncertainty of government contracts; risks associated with international operations and sales, including foreign currency fluctuations; risks related to the collectibility of access equipment receivables; the Company’s ability to offset rising steel costs through cost decreases or product selling price increases; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors and assumptions is contained in our filings with the SEC, including our Form 8-K filed May 1, 2008. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward- looking statements. 2
  • 3. Oshkosh Fiscal Q2 2008 Highlights Sales increased 6.7% OSK Q2 Performance to $1.8 billion (millions) Operating income increased $2,000 $180.0 $1,773 $1,800 $1,661 Operating Income 24.8% to $168.2 million Sales Revenue $160.0 $1,600 $168.2 $1,400 $140.0 EPS up 42.6% to $0.97 $1,200 $134.8 $1,000 $120.0 $845 $800 Maintaining FY 2008 EPS $100.0 $600 estimate range of $400 $80.0 $200 $4.15 to $4.35 $79.7 $0 $60.0 2006 2007 2008 Strong demand for access Sales Revenue Operating Income equipment and defense vehicles driving performance 3
  • 4. Access Equipment Continued strong international markets for aerial products offsetting lower North American sales Strong performance from broad base of customers Well-attended and active ConExpo 2008. New product and service launches included: – Ground Support™ - JLG branded after sales support – ClearSky™ connected asset technology - global remote maintenance assurance – Super compact telehandler – LiftPod® 4
  • 5. Defense Performance driven by both new and remanufactured trucks Strong expectations for foreseeable future supported by solid backlog and funding requests Parts & service business expected to grow significantly in back half of FY08 JLTV Technology Development phase proposal submitted with partner Northrop Grumman 5
  • 6. Fire & Emergency Weak towing & recovery and mobile medical/broadcast markets Pierce fire apparatus – Strong order activity during the quarter – Launch of PUC evolution technology products at FDIC Continued strong international airport products activity Cost containment initiatives New president at JerrDan (towing & recovery business) 6
  • 7. Commercial Significant weakness remains in U.S. concrete markets – Maintaining price discipline Continued cost reduction activities Domestic refuse products stable in modestly down market Geesink Norba Group progress: – Production of Norba-branded units started in The Netherlands – Commenced JLG parts fabrication in Romania – New managing director 7
  • 8. Consolidated Results (Dollars in millions) Second Quarter Comments 2008 2007 • Strong results in access equipment and Net Sales $1,772.6 $1,660.7 defense % Growth 6.7% 96.6% • Challenging market conditions continue to Operating Income $ 168.2 $ 134.8 impact commercial and % Margin 9.5% 8.1% fire & emergency % Growth 24.8% 69.1% segments • Corporate expenses in Earnings Per Share $ 0.97 $ 0.68 line with expectations % Growth 42.6% 1.5% 8
  • 9. Access Equipment (Dollars in millions) Second Quarter Comments 2008 2007 • Strong sales in international markets Net Sales $813.1 $707.9 • Lower North American % Growth 14.9% NA sales as expected • Significant margin Operating Income $123.6 $ 53.2 improvement driven by: % Margin 15.2% 7.5% • Volume % Growth 132.5% NA • Product and customer mix • Currency • Prior year purchase accounting charges • Backlog down 29.8% vs. prior year 9
  • 10. Defense (Dollars in millions) Second Quarter Comments 2008 2007 • Continued strong demand for new and Net Sales $450.8 $306.0 remanufactured trucks % Growth 47.3% (8.4)% • Vehicle product mix, lower Operating Income $ 59.7 $ 52.8 margin service activity and higher bid & proposal % Margin 13.2% 17.3% spending impacted margin % Growth 13.0% (19.8)% • Backlog down 12.6% vs. prior year 10
  • 11. Fire & Emergency (Dollars in millions) Second Quarter Comments 2008 2007 • Lower segment sales due to OSV, JerrDan Net Sales $272.3 $294.2 and BAI % Growth (7.4)% 32.9% • Margins impacted mainly by lower Operating Income $ 20.6 $ 27.6 volumes % Margin 7.6% 9.4% % Growth (25.6)% 54.6% • Backlog down 1.9% vs. prior year 11
  • 12. Commercial (Dollars in millions) Comments Second Quarter • Weak U.S. concrete 2008 2007 market conditions and Net Sales $250.9 $361.9 Geesink drove loss % Growth (30.7)% 20.9% • Continued solid domestic refuse orders Operating Income $ (5.5) $ 22.1 • Backlog down 16.4% % Margin (2.2)% 6.1% vs. prior year % Growth (124.8)% 44.3% 12
  • 13. Oshkosh Fiscal 2008 Estimates Revenue of $7.1 to $7.3 billion Expectations: Access Equipment sales to increase 25% to 30% Defense sales to increase 25% to 30% Fire & Emergency sales to increase approximately 5% Commercial sales to decrease approximately 20% 13
  • 14. Oshkosh Fiscal 2008 Estimates Operating Income of $670 to $695 million Expectations: Access Equipment margins to improve by 250 to 300 bps Defense margins to decline by 250 to 300 bps Fire & Emergency margins to decline by 50 to 100 bps Commercial margins to decline by 500 to 550 bps Corporate expense to increase by approximately $25 to $30 million 14
  • 15. Oshkosh Fiscal 2008 Estimates Other Estimates Interest expense and other $210 to $215 million (expense) Effective tax rate 33.5% Equity in earnings $5.0 to $5.5 million (income) Average shares outstanding 75 million 15
  • 16. Oshkosh Fiscal 2008 Estimates FY08 EPS estimate range of $4.15 to $4.35 Q3 EPS estimate range of $1.40 to $1.50 Capital spending expected to approximate $110 million Expect debt between $2.65 and $2.75 billion at fiscal year-end 16
  • 17. Fiscal Q2 2008 Summary Positive outlook for sales, operating income and EPS growth against difficult economy and weak domestic end markets in several businesses – Continued strong demand for access equipment and defense products – Slowdown after 2007 engine emissions pre-buy and macroeconomic issues continue to pressure commercial and fire & emergency segments Long-term defense outlook bolstered by strong funding requests and JLTV program opportunity Expanding global footprint and strengthening management team 17

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