Oshkosh Truck Corp., a leading manufacturer of specialty vehicles and vehicle bodies, last week reported that, for its second quarter of fiscal 2007, earnings per share were $0.68, on sales of $1.7 billion and net income of $50.9 million. These results compare with EPS of $0.67 on sales of $844.8 million and net income of $49.8 million for last year's second quarter. Oshkosh's EPS exceeded the company's most recent earnings estimate range for the quarter of $0.50 to $0.57 per share. Oshkosh also reaffirmed its estimated range of fiscal 2007 earnings per share of $3.15 to $3.25.
Sales in the second quarter of fiscal 2007 nearly doubled, increasing 96.6 percent as compared to the second quarter of fiscal 2006. The recent acquisition of JLG Industries contributed sales of $707.9 million to the second quarter of fiscal 2007.
Operating income increased 69.1 percent to $134.8 million, or 8.1 percent of sales. The company's access equipment segment contributed operating income of $53.2 million.
“We're pleased with this most recent performance, and especially encouraged by the strength we continue to experience with JLG, which comprises our new access equipment segment,” said Robert Bohn, chairman, president and CEO. “JLG is the latest and largest of Oshkosh Truck's acquisitions, and is proving to be the strong and transformational business that we thought it would be. In addition to the solid results from JLG this quarter, we also increased our sales and earnings expectations for JLG for fiscal 2007 and now expect the acquisition to be approximately $0.25 to $0.35 accretive to earnings in fiscal 2007.”
Access equipment segment sales were $707.9 million for the quarter, while operating income was $53.2 million, or 7.5 percent of sales. These results included charges totaling 3.5 percent of sales, consisting of $8.5 million related to the revaluation of inventory at the acquisition date of JLG and $16.1 million related primarily to recurring amortization of intangible and tangible assets established in the preliminary purchase accounting for the JLG acquisition. Sales reflected strong demand in Europe for all products and for aerial work platforms in North America, but the segment experienced softer demand for traditional telehandler business in North America. Sales for the segment were 19.6-percent higher in the quarter than sales for JLG as a stand-alone company for the same period last year.
The company reported that earnings per share decreased 11.5 percent to $1.23 per share for the first six months of fiscal 2007 on sales of $2.7 billion and net income of $92.1 million compared to $1.39 per share for the first six months of fiscal 2006 on sales of $1.6 billion and net income of $102.9 million. The JLG acquisition contributed significantly to both the increase in sales and decrease in net income compared to the prior year.
Operating income increased 31.0 percent to $218.4 million, or 8.2 percent of sales, in the first six months of fiscal 2007 compared to $166.7 million, or 10.2 percent of sales, in the first six months of fiscal 2006. The increase in operating income compared to the prior year was driven primarily by the JLG acquisition.
The company’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 May 25, to shareholders of record as of May 17.
Oshkosh Truck Corp. is a designer, manufacturer and marketer of a broad range of specialty access equipment, military, commercial and fire and emergency vehicles and vehicle bodies. It is the parent company of JLG Industries.
