oshkosh   Q407_Earnings
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oshkosh Q407_Earnings

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oshkosh   Q407_Earnings oshkosh Q407_Earnings Presentation Transcript

  • Earnings Conference Call Fourth Quarter Fiscal 2007 November 1, 2007 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 1 Patrick N. Davidson November 1, 2007 Vice President of Investor Relations
  • 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, debt levels and cash flows, 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,” “estimate,” “anticipate,” “believe,” “should,” “plan,” 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 2008, the Company’s ability to integrate the acquired JLG Industries, Inc. business, the consequences of financial leverage associated with the JLG acquisition, the Company’s ability to turn around the Geesink Norba Group business sufficiently to support its valuation resulting in no impairment charges for goodwill, the expected level of U.S. Department of Defense procurement of the Company’s products and services, the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, risks related to reductions in government expenditures, 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 and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors is contained in our filings with the SEC, including our Form 8-K filed November 1, 2007. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward-looking statements. 2 November 1, 2007
  • Oshkosh Fiscal 2007 Highlights • All-time records: OSK 5-yr Annual Performance – $6.3 billion sales (millions) – $590 million operating income $7,000.0 $700.0 – $3.58 EPS $6,307.3 $6,000.0 $600.0 • Repaid $256.5 million of debt Operating Income Sales Revenue $5,000.0 $500.0 $590.3 post JLG acquisition $4,000.0 $400.0 $3,427.4 $2,959.9 $3,000.0 $300.0 • Innovative new product offerings $325.9 $2,262.3 $267.2 $1,926.0 $2,000.0 $200.0 • Strengthened operating team $180.4 $1,000.0 $100.0 $129.2 • Outstanding performance from $0.0 $0.0 2003 2004 2005 2006 2007 JLG acquisition Sales Revenue Operating Income • Continuing to work on JLG integration 3 November 1, 2007
  • Access Equipment • Continued strength in international markets, particularly for aerial work platforms • Strong North American aerial work platform business, but softer telehandler business • Increased operating income margin 4 November 1, 2007
  • Defense • Continued strong performance driven by tactical vehicle needs • Solid visibility for fiscal 2008 supported by high levels of funding from recent budgets and supplementals • LVSR production ramping up • Delivered Bull™ MRAP II vehicles for evaluation and testing Bull™ is a trademark of Ideal Innovations, Inc. 5 November 1, 2007
  • Fire & Emergency • Airport products performed well in Q4 • Industry-leading fire apparatus maker Pierce increased market share • First commercial PUC delivered to Miami-Dade • Record year for Frontline broadcast vehicles 6 November 1, 2007
  • Commercial • Continued strong U.S. refuse results • Concrete placement sales declined due to: – Slowdown after 2007 engine emissions pre-buy – Challenging U.S. residential construction market • Initiated restructuring plan for European refuse business, with more actions expected in fiscal 2008 – Facility consolidation – Headcount reduction 7 November 1, 2007
  • Consolidated Results Dollars in millions, except per share amounts Fourth Quarter Comments 2006 2007 Net Sales $1,792.4 $904.4 • Access equipment % Growth 98.2% 9.8% and defense led the Operating Income $ 179.2 $ 76.6 way % Margin 10.0% 8.5% • JLG accretive to EPS % Growth 134.1% 3.5% by $0.54 Earnings Per Share $ 1.14 $ 0.66 • Debt reduced by % Growth 72.7% 13.8% $31.6 million 8 November 1, 2007
  • Access Equipment Dollars in millions Fourth Quarter Comments 2006 2007 • Strength around the world Net Sales $840.0 NA % Growth N/A NA • Strong U.S. non-residential construction helps offset Operating Income $114.5 NA soft telehandler market % Margin 13.6% NA • Backlog up 32.3%(1) over % Growth N/A NA prior year (1) Compared to JLG stand-alone results. 9 November 1, 2007
  • Defense Dollars in millions Fourth Quarter Comments 2006 2007 Net Sales $422.5 $328.6 • Reaping benefits of production ramp-up in % Growth 28.6% (7.4)% FHTV requirements Operating Income $ 72.4 $ 54.8 • Lower parts business % Margin 17.1% 16.7% during the quarter % Growth 32.0% (13.2)% • Backlog up 82.4% over prior year 10 November 1, 2007
  • Fire & Emergency Dollars in millions Fourth Quarter Comments 2006 2007 • Solid sales growth at Net Sales $291.8 $268.4 Pierce and airport % Growth 8.7% 27.0% products Operating Income $ 26.3 $ 21.4 • Improved performance at Medtec % Margin 9.0% 8.0% • Backlog down 10.2% % Growth 22.8% 12.6% 11 November 1, 2007
  • Commercial Dollars in millions Fourth Quarter Comments 2006 2007 • Continued weak concrete Net Sales $249.6 $319.1 mixer demand, as % Growth (21.8)% 19.7% expected Operating Income $ (3.1) $ 17.2 • U.S. refuse sales up 5.6% % Margin (1.2)% 5.4% • GNG facility rationalization charges of $4.8 million % Growth (118.0)% 278.4% • Backlog down 54.3% 12 November 1, 2007
  • Oshkosh Fiscal 2008 Estimates Sales of $7.1 to $7.3 billion Expectations: • Access equipment sales to increase about 20% • Defense sales to grow 20% to 25% • Fire & emergency sales to increase 5% to 10% • Commercial sales to decline slightly 13 November 1, 2007
  • Oshkosh Fiscal 2008 Estimates Operating Income of $690 to $715 Million Expectations: • Access equipment margins to improve by 150 to 200 bps • Defense margins to decline by 200 to 250 bps • Fire & emergency margins to improve by 50 to 100 bps • Commercial margins to decline slightly • Corporate expense to increase by approximately $30 million 14 November 1, 2007
  • Oshkosh Fiscal 2008 Estimates Other Estimates Fiscal 2008 Estimates Interest expense and other $215 to $225 million (expense) Effective tax rate 34.0% Equity in earnings $3.5 to $4.0 million (income) Average shares outstanding 76,500,000 15 November 1, 2007
  • Oshkosh Fiscal 2008 Estimates • Estimated annual EPS range of $4.15 to $4.35 • Q1 EPS estimate of $0.35 to $0.40 – Seasonally weak quarter – Difficult comparison due to prior year engine emissions related pre-buy • Anticipated capital spending of approximately $110 million • Debt expected to be approximately $2.65 to $2.75 billion by September 30, 2008 16 November 1, 2007
  • Q4 2007 Summary • Strong global outlook in access equipment • Good visibility in defense, with margins moving into lower, more sustainable range • Positive outlook for market share gains with Pierce • Commercial segment faces headwinds in fiscal 2008, but looks better in fiscal 2009 ahead of 2010 engine emissions standards changes • Complementary business segments underscore Oshkosh Truck’s winning strategy 17 November 1, 2007
  • 18 November 1, 2007