Oshkosh Downgrades Financial Outlook

June 26, 2008 • Oshkosh Corporation, Oshkosh, Wis., parent company to JLG Industries, has announced that it expects a loss of approximately $1.22 to $1.32 per share for its third quarter of fiscal 2008 compared to the company's prior earnings per share (EPS) estimate range of $1.40 to $1.50 of income for the quarter.

Lower than expected sales in both North America and Europe driven by softness in non-residential construction and general economic weakness, and rising raw material and fuel costs, caused the company to reduce its outlook for the third quarter and full fiscal year 2008, said Robert Bohn, Oshkosh chairman and CEO.

 

Projected third fiscal quarter results also reflect weaker performance expectations compared with previous estimates for, most notably, the company's access equipment segment.

 

The expected loss relates to a non-cash charge for the impairment of goodwill to be recorded in connection with the company's European refuse collection vehicle manufacturer, the Geesink Norba Group (Geesink). The impact of the impairment charge on third fiscal quarter earnings is estimated to be approximately $175 million, or $2.32 per share.

 

The company said it expects that fourth fiscal quarter EPS will be below prior year's levels and will provide a new EPS estimate range for full fiscal year 2008 when it announces its third fiscal quarter results.