Oshkosh Touts JLG's Positive Impact on Earnings

February 6, 2008 • Oshkosh, Wis.-based Oshkosh Truck Corporation, parent company to JLG Industries, recently reported its first quarter of fiscal 2008, stating its earnings per share (EPS) was $0.50, on sales of $1.5 billion and net income of $37.3 million. These results compare with EPS of $0.55 on sales of $1 billion and net income of $41.2 million for last year's first quarter. Oshkosh's EPS exceeded the company's most recent earnings estimate range for the first quarter of $0.35 - $0.40. Oshkosh also reaffirmed its estimate range for fiscal 2008 EPS of $4.15 - $4.35.

"We've just completed our first full year of ownership of JLG Industries and we couldn't be happier with its positive impact on the Oshkosh family," said Robert Bohn, Oshkosh Truck Corporation chairman and CEO. "Our access equipment segment continued to deliver double-digit sales growth with its dynamic products, driven by demand in international markets.”

 

Bohn predicts that the well-performing access equipment and defense segments will propel the company's growth throughout fiscal 2008. “As a result, we are maintaining our positive outlook for the company as we expect both top and bottom line growth to lead to an EPS range of $4.15 to $4.35 in fiscal 2008,” he said. “This is an increase of between 16 and 22 percent over the prior year.”

 

Bohn added that the company is meeting weak market conditions head on by investing in global initiatives to improve distribution in key international growth markets and reducing costs across all businesses, which permits the company to maintain its positive outlook for fiscal 2008.

 

Sales in the first quarter of fiscal 2008 increased $493.1 million, or 49 percent, as compared to last year's first quarter. The acquisition of JLG was the primary driver of the increase as it was a part of the company for the entire first quarter in fiscal 2008, versus 25 days in last year's first quarter.

 

Access equipment segment sales were $610.5 million for the quarter, while operating income was $61.1 million, or 10 percent of sales. Sales for the segment were 18.9 percent higher in the quarter than JLG sales for the comparable prior year period, including sales prior to Oshkosh ownership. Sales reflected substantially higher demand internationally, offset in part by lower telehandler sales in North America. Operating income in the first quarter benefited from higher sales, favorable product mix and favorable foreign exchange rates.

 

The company reaffirmed its fiscal 2008 EPS estimate range of $4.15 to $4.35 compared to EPS of $3.58 in fiscal 2007. The company expects its second quarter EPS to be in the range of $0.85 to $0.90.

 

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 Feb. 25, to shareholders of record as of Feb. 15.