Decrease in defense spending and foreign currency hurt Oshkosh Corp.

Freeman Staff

April 28, 2015

OSHKOSH —The net income reported by Oshkosh Corporation for its second quarter was negatively affected by a decrease in defense vehicle spending, weather and foreign currency rates. According to a report Tuesday, Oshkosh Corporation had net income of $54.6 million, or $0.69 per diluted share during the second quarter of fiscal 2015, compared to $71.5 million, or $0.83 per diluted share, during the same period last year.
Results for the second quarter of fiscal 2015 included after-tax costs of $9.3 million incurred in connection with the refinancing of the company’s senior notes due 2020.

Consolidated net sales for this past quarter were $1.55 billion, a decrease of 7.4 percent, according to Oshkosh Corporation. The company also reported that non-defense segment contracts helped to offset the “significantly lower defense segment sales.” On a constant currency basis, sales decreased 5.7 percent compared to the second quarter of fiscal 2014.

“Our team performed well in the quarter as we managed through a previously announced break in production under the Family of Heavy Tactical Vehicle program in our defense segment, foreign currency headwinds and severe weather conditions in the Northeast U.S. to deliver adjusted earnings per share in line with our expectations and slightly above the prior year quarter adjusted earnings per share,” said Charles L. Szews, Oshkosh Corporation chief executive officer, in a statement. “Sales and operating income were higher in each of our non-defense segments, reflecting the continued recovery of those markets and the execution of our MOVE strategy. The improved operating results in our non-defense segments helped to mitigate much of the impact of significantly lower defense segment sales and earnings.