oshkosh Q207_Slides

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  • 1. Earnings Conference Call Second Quarter Fiscal 2007 May 3, 2007Robert G. BohnChairman, President and Chief Executive Officer Charles L. SzewsExecutive Vice President and Chief Financial Officerand President, JLG Industries, Inc. 1Patrick N. DavidsonVice President of Investor Relations

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., 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 adjust its operating expenses in the second half of 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, 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 May 3, 2007. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward-looking statements. 2 3. Oshkosh Q2 2007 Highlights Sales increased 96.6% to OSK Q2 Performance $1.66 billion(millions) Operating income $2,000 $160.0$1,800 increased 69.1% to$134.8 $140.0$1,600 $1,661Operating Income $120.0Sales Revenue$1,400 $134.8 million$100.0$1,200$79.7 $1,000 $80.0 EPS up 1.5% to $0.68$62.6 $800$60.0$845 $600$672 $40.0 Large contract awards for $400 $20.0 $200defense $0$0.02005 20062007 Met fiscal 2007 debtSales Revenue Operating Income retirement target six months early 3 4. Access Equipment Met financial and operationsexpectations in Q2 Strong international markets,particularly in Europe Strong aerial work platformbusiness in U.S., but softertraditional telehandlerbusiness BAUMA demonstrated powerof JLG brand4 5. Defense Lower sales and operating income compared to prior year quarter Scheduled deliveries shifted to secondhalf of 2007 Lower margin driven by product mixand FHTV contract renewal Multiple contract awards during quarter FHTV MRAP TPER MTT Strong funding outlook Budget Spring supplemental 5 6. Fire & Emergency Continuing strong performance at Pierce Successful PUC launch at FDIC show Solid results in airport products and towing equipment groups Consolidating activities at Oshkosh Specialty Vehicles6 7. Commercial Continued marginimprovement at McNeilus 2007 engine emissionsstandards changes expectedto impact second half results Significant progress atGeesink Norba Group in Q2: Rationalized workforce and facilities Leveraging facilities with JLG Required Q2 charges IMT integration progressingwith solid results 7 8. JLG Integration Update Met or exceeded significant 100 day goals Numerous customer visits and trade shows Power of cream and orange isevident Expect to exceed previous fiscal 2007 synergy, earnings and cash flow targets Solid progress building team and strategies to drive JLG forward8 9. Consolidated Results Dollars in millions, except per share amountsSecond Quarter Comments2006 2007 Defense timing and Net Sales$1,660.7 $844.8product mix adversely% Growth96.6% 25.6% impacted results Operating Income $ 134.8$ 79.7 JLG dilutive to EPS by$0.02 per share% Margin 8.1%9.4% $10.1 million ($0.09% Growth69.1% 27.3%per share) of inventory Earnings Per Share $0.68$ 0.67 revaluation chargesin Q2% Growth 1.5% 28.8% Re-priced Term Loan Band executed interestrate swap 9 10. Access Equipment Dollars in millionsSecond Quarter Comments 20062007 Sales up in all regions Net Sales $707.9NAworldwide(1)% GrowthNA NA Purchase accounting Operating Income$ 53.2NAcharges:% Margin7.5% NA - $8.5 millioninventory revaluation% GrowthNA NA- $16.1 million recurringamortization anddepreciation Backlog up 26.0%(1)(1) Compared to JLG stand-alone results.10 11. Defense Dollars in millionsSecond Quarter Comments 20062007 Net Sales $306.0 $334.2 Results consistent with previous estimates% Growth (8.4)%59.4% Product mix and FHTV Operating Income$ 52.8 $ 65.8 contract renewal% Margin 17.3% 19.7% affected margins% Growth(19.8)%33.2% Production increase on schedule Backlog up 46.0% 11 12. Fire & Emergency Dollars in millions Second Quarter Comments20062007 Sales and margin Net Sales $294.2 $221.3 growth at Pierce% Growth 32.9% 3.8% Solid towing product Operating Income$ 27.6 $ 17.9 and airport product% Margin9.4% 8.1%results% Growth 54.6%(5.9)% Includes $35.8 million of sales from OSV Backlog up 11.9%, including OSV12 13. Commercial Dollars in millions Second Quarter Comments20062007 Continued strong Net Sales $361.9$299.5domestic sales volume% Growth 20.9%17.3%(pre-buy carryover for Operating Income$ 22.1$ 15.3 both concrete & refuse)% Margin6.1% 5.1% Workforce reductionsand other adjustments% Growth 44.3%137.5%totaled $4.9 million Includes $28.8 million ofsales from IMT Backlog down 31.1%,including IMT 13 14. Oshkosh Fiscal 2007 EstimatesSales of $6.1 to $6.2 billion Expect access equipment sales between $2.35 and $2.45 billion Anticipate defense sales increase of $100 to $150 million Expect fire and emergency sales to increase by approximately $200 million Commercial sales expected to be flat; includes impact of IMT 14 15. Oshkosh Fiscal 2007 Estimates Operating Income of $568 to $580 Million Anticipate access equipment margins of about 9.5%, including purchase accounting charges of $63 to $65 million Expect defense margins to decline by approximately 50 to 100 bps Project fire & emergency margins to be even with prior year Commercial margins expected to decline by 50-100 bps 15 16. Oshkosh Fiscal 2007 EstimatesOther EstimatesFiscal 2007 Estimates Interest expense and other$205 to $215 million (expense) Effective tax rate 36.0% Minority interest$0.5 million (expense) Equity in earnings $5.5 million (income) Average shares outstanding75,000,000 16 17. Oshkosh Fiscal 2007 Estimates Estimated annual EPS range of $3.15 - $3.25 Estimated Q3 EPS range of $0.90 - $0.95 Anticipated capital spending of approximately $105 to $115 million Debt expected to be approximately $3.0 - $3.1 billion at fiscal year-end 17 18. Q2 2007 Summary Reduced business risk Strong debt pay-down Aggressive steps taken to improve Europeanrefuse business Defense margins moving into lower, more sustainable range, but outlook is strengthening Access equipment beginning to contribute to overall performance Forecasting stronger earnings Success of diversification strategy is evident18 19. 19