Oshkosh Reports Decrease in Access Equipment Sales
November 3, 2008 – Oshkosh, Wis.-based Oshkosh Corporation, JLG Industries’ parent company, today reported that sales in the fourth quarter of fiscal 2008 increased 5.8 percent compared to last year's fourth quarter. These results were buoyed by strong demand in its defense, refuse collection and fire apparatus segments, but were offset in part by a decrease in sales for the company's access equipment segment products as a result of the slowdown in the Operating income in the segment in the fourth quarter decreased 56.2 percent to $50.2 million, or 6.8 percent of sales, compared to the prior year fourth quarter operating income of $114.5 million, or 13.6 percent of sales. The decrease in operating income was primarily the result of lower volume, higher raw material costs, in particular steel, and adverse product mix, offset in part by favorable foreign currency exchange rates. The company’s fourth quarter operating income decreased 31.9 percent to $122.1 million, or 6.4 percent of sales, compared to the prior year fourth quarter operating income of $179.2 million, or 10 percent of sales. "We finished the year with a solid fourth quarter performance, driving strong cash flow and more than $200 million of debt reduction," said Robert Bohn, Oshkosh Corporation chairman and CEO. "Our growing defense business led the way in the quarter, which helped propel our full year revenue to more than $7 billion for the first time in our history. Bohn said that in fiscal 2009, debt reduction and cost management will remain priorities for the company during the period of weaker global economies and uncertain credit markets. The company also announced its fiscal 2009 EPS expectations of $1.65 to $2.05 on projected sales of $6.3 to $6.7 billion. The company expects continued weakness in economies worldwide to significantly affect sales in fiscal 2009, particularly in the access equipment and commercial segments, driving consolidated sales down from $7.1 billion in fiscal 2008. Click here for the complete financial report.
Access equipment segment sales decreased 11.7 percent to $742.1 million for the fourth quarter of fiscal 2008 compared to the prior year quarter. Sales in North America declined more than 20 percent versus the comparable prior year quarter on significantly lower aerial work platform shipments as a result of weak