JLG Strengthens Oshkosh Truck's Financial Results
November 2, 2007 • Oshkosh Truck Corporation,
For the fourth quarter of fiscal 2007, EPS increased 72.7 percent to $1.14 on sales of $1.8 billion and net income of $85.4 million. These results compare with EPS of $0.66 on sales of $0.9 billion and net income of $49.2 million for last year's fourth quarter.
"The Oshkosh Truck family of companies delivered another exceptional quarter, led by our newest segment, access equipment,” said Robert Bohn, chairman and CEO of Oshkosh Truck. “This truly outstanding performance by JLG during the quarter propelled us to another all-time record for full-year sales and net income as JLG became a more integral part of our business. I can't say enough about the efforts put forth by everyone involved as we work together to grow this great company."
Sales in the fourth quarter of fiscal 2007 increased $888 million, or 98.2 percent, as compared to last year's fourth quarter. The acquisition of JLG Industries, Inc. contributed sales of $840 million in the fourth quarter of fiscal 2007. Sales grew in the company's fire and emergency and defense segments, while its commercial segment sales declined because of lower demand for concrete mixers in North America subsequent to the diesel engine emissions standards changes effective January 2007 and lower residential construction activity.
Fourth quarter operating income increased 134.1 percent to $179.2 million, or 10 percent of sales. The company achieved operating income margins of 10 percent or greater for the second consecutive quarter. The company's access equipment segment contributed operating income of $114.5 million. Access equipment segment sales were $840 million for the quarter, while operating income was $114.5 million, or 13.6 percent of sales. Sales for the segment were 46.6 percent higher in the quarter than sales for JLG as a stand-alone company for the same period last year. Compared to JLG's pre-acquisition results for the same period in 2006, sales reflected higher worldwide demand for aerial work platforms and the addition of the sales of Caterpillar branded telehandlers, offset in part by lower demand for JLG-owned telehandler brands in
JLG was accretive to EPS for the fourth quarter by $0.54. The company had previously estimated that JLG would be accretive to fourth quarter EPS by $0.20 to $0.25. The improvement from previous estimates resulted from higher international sales and favorable exchange rates.
Oshkosh Truck Corporation reported that EPS increased 29.7 percent to $3.58 for fiscal 2007 on sales of $6.3 billion and net income of $268.1 million compared to EPS of $2.76 for fiscal 2006 on sales of $3.4 billion and net income of $205.5 million. The JLG acquisition contributed significantly to the increase in both sales and net income compared to the prior year. The JLG acquisition was accretive to EPS for fiscal 2007 by $0.75 despite the impact of certain purchase accounting adjustments and completion of the JLG acquisition during a seasonally slow holiday period.
Operating income increased 81.1 percent to $590.3 million, or 9.4 percent of sales, in fiscal 2007 compared to $325.9 million, or 9.5 percent of sales, in fiscal 2006. The increase in operating income compared to the prior year was driven primarily by the JLG acquisition.
The company reaffirmed its fiscal 2008 EPS estimate range of $4.15 to $4.35 compared to $3.58 in fiscal 2007. The company expects sales in its access equipment and defense segments to grow by double-digit percentages in fiscal 2008. The company also expects such sales increases and cost reduction plans across all segments to be the primary drivers of its estimated EPS growth in fiscal 2008.
Oshkosh Truck Corporation's board of directors declared a quarterly dividend of $0.10 per share of common stock. The dividend, unchanged from the immediately preceding quarter, will be payable Nov. 26, 2007, to shareholders of record as of Nov. 15, 2007.
