Oshkosh Corporation’s first quarter income decreases by $20 million

Special to The Freeman

Jan. 27, 2015

OSHKOSH — Due to the decrease in federal defense vehicle contracts, Oshkosh Corporation’s first quarter income took a direct hit.
 
According to the company Tuesday, its first quarter net income was $34.7 million, or $0.43 per diluted share, compared to $54.9 million, or $0.63 per diluted share, in the first quarter of fiscal 2014. Results for the first quarter of fiscal 2015 included a $2.1 million after-tax other postretirement benefit curtailment gain in the defense segment. Consolidated net sales in the first quarter of fiscal 2015 were $1.35 billion, a decrease of 11.6 percent.

“Expected lower defense segment sales and lower fire & emergency shipments as a result of a planned lower rate of production were offset in part by improved demand in the company’s access equipment and commercial segments,” according to Oshkosh Corp.

Consolidated operating income in the first quarter of fiscal 2015 was $65.7 million, or 4.9 percent of sales, compared to $96.5 million, or 6.3 percent of sales, in the prior year first quarter.

“We are pleased to announce first quarter adjusted results that exceeded our expectations, driven by better than expected results in each of our four segments,” said Charles L. Szews, Oshkosh Corporation chief executive office, in a statement. “We continued to experience, as expected, significantly lower defense segment sales in the quarter due to lower U.S. Department of Defense spending for tactical wheeled vehicles. However, we finished the quarter with strong orders and higher backlogs in all of our non-defense segments compared with the first quarter of fiscal 2014, which we believe is a positive reflection of our non-defense customers’ expectations for 2015.”

www.oshkoshcorporation.com