oshkosh Q308_Slides

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  • 1. Earnings Conference Call Third Quarter Fiscal 2008 August 1, 2008 Robert G. Bohn Chairman and Chief Executive Officer Charles L. Szews President and Chief Operating Officer David M. Sagehorn Executive Vice President and Chief Financial Officer Patrick N. Davidson Vice 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 of 1995. All statements other than statements of historical fact, including without limitation, statements regarding the Companys 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 presentation, 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 Companys control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the consequences of financial leverage associated with the JLG acquisition and the level of the Companys associated borrowing costs; the cyclical nature of the Companys access equipment, commercial and fire & emergency markets, especially during a recession, which many believe the U.S. has already entered; the Companys ability to offset rising steel, fuel and other costs through other cost decreases or product selling price increases; the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof; risks related to reductions in government expenditures and the uncertainty of government contracts; risks associated with international operations and sales, including foreign currency fluctuations; risks related to the collectibility of access equipment receivables; the Companys ability to turn around its Geesink business; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors and assumptions is contained in our filings with the SEC, including our Form 8-K filed August 1, 2008. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward-looking statements. 2
  • 3. Oshkosh Fiscal Q3 2008 Highlights Sales increased 6.6% OSK Q3 Performance to $1.97 billion (millions) Operating income* decreased $2,500 $300.0 5.9% to $181.2 million Operating Income* Sales Revenue $250.0 $1,969 $2,000 $1,847 EPS* decreased 1.7% to $200.0 $1,500 $192.7 $1.19 $150.0 $181.2 $1,000 $888 $100.0 Revised FY 2008 EPS* $500 $82.6 $50.0 estimate range of $0 $0.0 $3.15 to $3.30 2006 2007 2008 Sales Revenue Operating Income* $78.6 million of debt pay down * Figures exclude non-cash charges to operating income for asset impairment of $175.2 million or $173.1 million net of tax 3
  • 4. Managing Proactively for Market Conditions Launched multiple cost reduction initiatives Reducing operating expenses Expanding global sourcing initiatives Aggressively raised pricing as previously announced Increasing focus on cash flow generation Inventory reduction Continuing to invest in areas of growth 4
  • 5. Access Equipment Europe: Double-digit growth in Q3, even with reduced outlook Mixed results expected in 2009 North America: IRC demand remained strong in Q3 Continuing to expand presence in emerging markets Adjusted production rates New pricing effective October 1 to address cost pressures 5
  • 6. Defense Significant parts & service growth in quarter Recently signed supplemental supports strong sales outlook Ramp-up of Harrison Street facility is complete JLTV downselect decision expected late summer or fall 6
  • 7. Fire & Emergency Strong orders and market share gains for Pierce in a down market New product innovations continue to drive customer activity at Pierce Continued strong international airport products activity, primarily in Asia Weakness remains for towing & recovery and mobile medical markets 7
  • 8. Commercial Geesink Norba Group update: Impairment charges of $175.2 million due to reduced outlook and higher operating costs as announced on June 26 New managing director reinvigorating team Restructuring actions expected to yield improved performance U.S. concrete markets remain soft Domestic refuse collection product sales grew over prior year quarter in slightly down market 8
  • 9. Consolidated Results (Dollars in millions, except per share amounts) Third Quarter Comments 2008* 2007 Solid results in access equipment and defense Net Sales $1,969.3 $1,847.3 Challenging market % Growth 6.6% 108.1% conditions impacting commercial and fire & emergency segments Operating Income $ 181.2 $ 192.7 Limited third quarter % Margin 9.2% 10.4%