MOVE Strategy Evolving and Expected to Drive
Increased Value for Shareholders
Raises Fiscal 2016 Adjusted EPS Estimate to
Range of $2.85 to $3.00
Expects Year-Over-Year Growth in Revenue,
Operating Income and EPS in Fiscal 2017
Announces Fiscal 2017 EPS Estimate Range of
$3.00 to $3.40
Oshkosh Corporation (NYSE: OSK), a leading manufacturer of
specialty vehicles and vehicle bodies, is announcing at its Analyst
Day being held today that the Company is increasing its fiscal 2016
financial estimates and expects to deliver year-over-year growth in
revenue, operating income and earnings per share (EPS) in fiscal
2017.
“Oshkosh Corporation is a different integrated global industrial
company that is delivering solid results, underscored by our
updated fiscal 2016 estimates and confidence that we will build on
this performance in fiscal 2017,” said Wilson R. Jones, Oshkosh
Corporation president and chief executive officer. “Looking to next
year, we anticipate increases in revenue, operating income and EPS
despite expected lower sales and operating income in our access
equipment segment.
“Longer-term, we expect strong free cash flow over the cycle to
provide capital allocation alternatives that will benefit our
shareholders. We expect to achieve our fiscal 2017 estimates
through the continued execution and evolution of our MOVE strategy,
which has delivered for customers and shareholders alike over the
last several years. We look forward to sharing more about our
objectives and plans to continue driving shareholder value this
morning during our Analyst Day.”
The Company’s updated estimates for fiscal 2016 include:
- Revenues of $6.1 billion to $6.2
billion
- Adjusted operating income of $360
million to $375 million
- Adjusted EPS of $2.85 to $3.00
The Company now believes it will deliver stronger than
previously expected performance in the fiscal fourth quarter of
2016 as a result of expected higher deliveries of M-ATVs in the
Company’s defense segment, access equipment segment sales at the
high end of prior expectations and a lower tax rate.
The Company’s initial estimates for fiscal 2017 include:
- Revenues of $6.5 billion to $6.7
billion
- Operating income of $390 million to
$430 million
- EPS of $3.00 to $3.40
At the Company’s Analyst Day, the Oshkosh leadership team will
review each of its four business segments and provide updates on
expected segment performance in fiscal 2016 as well as discuss each
segment’s initial outlook for fiscal 2017.
Fiscal 2016 adjusted results exclude expected restructuring
charges of $27.0 million resulting from the Company's decision to
outsource certain aftermarket parts distribution center and
logistics operations in the U.S. and Europe in the Company's access
equipment segment. The Company expects the EPS impact of these
restructuring charges in fiscal 2016 will be $0.23. The Company
expects to finalize the amounts of the charges resulting from these
actions in the next several weeks, so actual amounts may be
slightly different.
The Oshkosh 2016 Analyst Day presentation and webcast will be
available on the Investor Relations portion of Oshkosh’s website,
at http://investor.oshkoshcorporation.com beginning at 9:00 a.m.
EDT. To access the webcast, investors should go to
www.oshkoshcorporation.com at least 15 minutes prior to the
event.
About Oshkosh
Corporation
Oshkosh Corporation is a leading designer, manufacturer and
marketer of a broad range of specialty access equipment,
commercial, fire & emergency and military vehicles and vehicle
bodies. Oshkosh Corporation manufactures, distributes and services
products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®,
Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™, CON-E-CO®,
London® and IMT®. Oshkosh products are valued worldwide in
businesses where high quality, superior performance, rugged
reliability and long-term value are paramount. For more
information, log on to www.oshkoshcorporation.com.
®, TM All brand names referred to in this news release are
trademarks of Oshkosh Corporation or its subsidiary companies.
Forward Looking
Statements
This press release contains statements that the Company believes
to be “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact, including, without
limitation, statements regarding the Company’s future financial
position, business strategy, targets, projected sales, costs,
earnings, capital expenditures, debt levels and cash flows, and
plans and objectives of management for future operations, are
forward-looking statements. When used in this press release, words
such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “should,” “project” or “plan” or the
negative thereof or variations thereon or similar terminology are
generally intended to identify forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to risks, uncertainties, assumptions and other
factors, some of which are beyond the Company’s control, which
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. These
factors include the cyclical nature of the Company’s access
equipment, commercial and fire & emergency markets, which are
particularly impacted by the strength of U.S. and European
economies and construction seasons; the Company’s estimates of
access equipment demand which, among other factors, is influenced
by customer historical buying patterns and rental company fleet
replacement strategies; the strength of the dollar and its impact
on Company exports, translation of foreign sales and purchased
materials; the expected level and timing of U.S. DoD and
international defense customer procurement of products and services
and acceptance and funding or payments thereof; the Company’s
ability to utilize material and components which it has committed
to purchase from suppliers; higher material costs resulting from
production variability due to uncertainty of timing of funding or
payments from international defense customers; risks related to
reductions in government expenditures in light of U.S. defense
budget pressures, sequestration and an uncertain DoD tactical
wheeled vehicle strategy; the impact of any DoD solicitation for
competition for future contracts to produce military vehicles,
including a future FMTV production contract; the Company’s ability
to increase prices to raise margins or offset higher input costs;
increasing commodity and other raw material costs, particularly in
a sustained economic recovery; risks related to facilities
expansion, consolidation and alignment, including the amounts of
related costs and charges and that anticipated cost savings may not
be achieved; global economic uncertainty, which could lead to
additional impairment charges related to many of the Company’s
intangible assets and/or a slower recovery in the Company’s
cyclical businesses than Company or equity market expectations;
projected adoption rates of work at height machinery in emerging
markets; the impact of severe weather or natural disasters that may
affect the Company, its suppliers or its customers; risks related
to the collectability of receivables, particularly for those
businesses with exposure to construction markets; the cost of any
warranty campaigns related to the Company’s products; risks related
to production or shipment delays arising from quality or production
issues; risks associated with international operations and sales,
including compliance with the Foreign Corrupt Practices Act; the
Company’s ability to comply with complex laws and regulations
applicable to U.S. government contractors; cybersecurity risks and
costs of defending against, mitigating and responding to a data
security breach; and risks related to the Company’s ability to
successfully execute on its strategic road map and meet its
long-term financial goals. Additional information concerning these
and other factors is contained in the Company’s filings with the
Securities and Exchange Commission. All forward-looking statements
speak only as of the date of this press release. The Company
assumes no obligation, and disclaims any obligation, to update
information contained in this press release. Investors should be
aware that the Company may not update such information until the
Company’s next quarterly earnings conference call, if at all.
Non-GAAP Financial
Measures
The Company reports its financial results in accordance with
generally accepted accounting principles in the United States of
America (GAAP). The Company is presenting various operating results
both on a reported basis and on an adjusted basis that excludes
items that affect comparability of results. When the Company uses
adjusted operating results that exclude certain items as described
below, they are considered non-GAAP financial measures. The Company
believes excluding the impact of these items is useful to investors
in comparing the Company’s performance to prior period results.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the Company’s results prepared in
accordance with GAAP. The table below presents a reconciliation of
the Company’s presented non-GAAP measures to the most directly
comparable GAAP measures (in millions, except per share
amounts):
Fiscal 2016 Estimates Low
High Operating income Adjusted amount
presented $ 360.0 $ 375.0
Restructuring charges (27.0 )
(27.0 ) GAAP $ 333.0
$ 348.0 Earnings per share -
diluted Adjusted amount presented $ 2.85
$ 3.00 Restructuring charges, net of tax
(0.23 ) (0.23 )
GAAP $ 2.62 $ 2.77
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version on businesswire.com: http://www.businesswire.com/news/home/20160923005391/en/
Oshkosh CorporationFinancial:Patrick DavidsonVice President,
Investor Relations920.966.5939orMedia:Katie HoxtellAssistant
Marketing Manager920.235.9151 x25324
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