Oshkosh Corp. last week announced that it expects a loss of about $1.22 to $1.32 per share for its third quarter of fiscal 2008 compared to the company’s previous earnings per share estimate range of $1.40 to $1.50 of income for the quarter. The expected loss relates to a non-cash charge for the impairment of goodwill to be recorded in connection with the company’s European refuse collection vehicle manufacturer, the Geesink Norba Group.
Projected third fiscal quarter results also reflect weaker performance expectations compared with previous estimates for the company’s access segment – JLG – and, to a lesser extent, its fire and emergency and commercial segments.
“Lower than expected sales in both North American and Europe, driven by softness in non-residential construction and general economic weakness, and rising raw material and fuel costs, have caused us to reduce our outlook for the third quarter and full fiscal year 2008,” said Robert Bohn, Oshkosh chairman and CEO.
In a conference call with investors, Oshkosh officials said it has seen a downturn in European orders recently. Chief financial officer Charles Szews said European business was still strong, but was falling below expectations.
Oshkosh recently announced price increases across a broad range of products, including fire trucks, cement mixers and other heavy vehicles, with steel prices jumping 50 to 90 percent.
Oshkosh Corp. is based in Oshkosh, Wis. Its JLG division is based in McConnellsburg, Pa.
