oshkosh Q107_Slides

Click here to load reader

Embed Size (px)

description

 

Transcript of oshkosh Q107_Slides

  • 1. Earnings Conference Call First Quarter Fiscal 2007 February 2, 2007 Robert G. Bohn Chairman, President and Chief Executive Officer Charles L. Szews Executive Vice President and Chief Financial Officer and President, JLG Industries, Inc. 1 Patrick N. Davidson
  • 2. Forward Looking Statements Our remarks that follow, including answers to your questions and these slides, include statements that we believe are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. All of our statements, other than statements of historical fact, including statements regarding Oshkosh Trucks future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of words such as expect, intend, estimates, anticipate, believe, should, plans, or similar words. We cannot give any assurance that such expectations will prove to be correct. Some factors that could cause actual results to differ materially from our expectations include the accuracy of assumptions made with respect to our expectations for fiscal 2007, the Companys ability to integrate the JLG Industries, Inc., the Oshkosh Specialty Vehicles and Iowa Mold Tooling Co., Inc. acquisitions, the consequences of financial leverage associated with the JLG acquisition, the Companys ability to turn around the Geesink Norba Group and Medtec businesses sufficiently to support their valuations resulting in no non-cash impairment charges for goodwill, the Companys ability to grow operating income in fiscal 2007 at certain of its business units that anticipate lower industry demand resulting from changes to diesel engine emissions standards effective January 1, 2007, the expected level of U.S. Department of Defense procurement of the Companys products and services, the cyclical nature of the Companys access equipment, commercial and fire & emergency markets, risks related to reductions in government expenditures, the uncertainty of government contracts, the success of the launch of the Revolution drum, and risks associated with international operations. Additional information concerning these and other factors is contained in our filings with the SEC, including our Form 8-K filed February 2, 2007. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward- looking statements. 2
  • 3. Oshkosh Q1 2007 Highlights Closed on $3.1 billion OSK Q1 Performance acquisition of JLG Industries (millions) Acquisition meeting our expectations $1,200 $100.0 $87.0 $83.6 $90.0 Sales increased 27.4% to $1,000 $80.0 $67.6 Operating Income Sales Revenue $1,006.8 $1.01 billion $70.0 $790.3 $800 $60.0 $644.9 Operating income decreased $600 $50.0 $40.0 3.9% to $83.6 million $400 $30.0 $20.0 EPS down 23.6% to $0.55 $200 $10.0 $0 $0.0 Increased fiscal 2007 EPS 2005 2006 2007 estimate range by $0.10; Sales Revenue Operating Income now $3.15 to $3.25 3
  • 4. Defense Tough quarterly comparison with 2006, as expected Remanufacturing volume shifted to back half of fiscal 2007 Parts & service business impacted by low funding Increasing bid activity for armored vehicles Expect large spring 2007 supplemental; solidifies outlook for fiscal 2008 4
  • 5. Fire & Emergency Exceptional performance by Pierce led the way Velocity and Impel chassis gaining momentum Solid results in towing and airport groups Significant integration progress with recent acquisition, Oshkosh Specialty Vehicles (formerly known as AK Specialty Vehicles) 5
  • 6. Commercial Strong domestic results in advance of tighter 2007 engine emissions standards Chassis availability issues in France continue and U.K. demand remains weak IMT synergies and integration progressing as planned Successfully implemented 3rd and final phase of McNeilus ERP system 6
  • 7. Strategic Rationale for JLG Continue track record of outstanding shareholder value creation JLG is the world leader in aerial work platforms and telehandlers OSKs acquisition objectives: Support growth rate of >15% Diversify to complement strong and growing defense business Provide scale in procurement and global reach Execute within goals of long-term acquisition strategy 7
  • 8. JLG Meeting Expectations Fiscal 2007 outlook favorable Favorable contract renewals Prices increased Favorable mix shift to aerial work platforms Achieving scale as expected Procurement Global reach Excellent integration cooperation Strong cultural similarities with Oshkosh 8
  • 9. Integration Activities Formed value creation and back office integration teams Created management team to drive business forward Established 100 day goals Communicated sales and growth objectives Opportunities are matching expectations Expect to deliver fiscal 2007 synergy targets 9
  • 10. Driving JLG Forward OSK Annual Revenues (millions) Focused on delivering $7,000 value to customers $6,000 Implementing growth $5,000 drivers $4,000 $3,000 Creating velocity $2,000 Installing best practices $1,000 $0 - 96 01 02 03 04 05 20 6 E