Oshkosh Corp., a leading manufacturer of specialty vehicles and vehicle bodies, and parent company of McConnellsburg, Pa.-based JLG Industries’, last week reported that, for its second quarter of fiscal 2008, earnings per share were $0.97, on sales of $1.8 billion and net income of $72.6 million. These results compare with EPS of $0.68 on sales of $1.7 billion and net income of $50.9 million for the comparable prior-year quarter. Oshkosh’s EPS exceeded the company’s most recent earnings estimate range for the second quarter of $0.85 to $0.90.

“We are pleased to be reporting sales and EPS records for an Oshkosh Corporation second fiscal quarter,” said Robert Bohn, Oshkosh Corp. chairman and CEO. “While we faced some significant challenges in several of our markets, their effects were overcome by sharply higher sales in global markets for our JLG access equipment business as well as an on-going need for defense vehicles built by Oshkosh. Strong penetration in markets outside North America with our access equipment customers bolsters our perspective as we move forward.”

Sales in the second quarter of fiscal 2008 increased $111.9 million, or 6.7 percent, compared to last year's second quarter. The increase was primarily attributable to higher sales in the defense segment and strong international access equipment sales, offset in part by lower sales in the commercial and fire & emergency segments due to the weak U.S. economy, including sharply lower residential construction.

Second-quarter operating income increased 24.8 percent to $168.2 million, or 9.5 percent of sales. The increase in operating income was primarily related to strong performance in the access equipment segment and, to a lesser extent, the defense segment.

In the access equipment segment sales increased 14.9 percent to $813.1 million for the second quarter due to substantially higher shipments internationally and favorable foreign exchange rates, offset in part by lower sales in North America. Sales outside of North America nearly doubled over the comparable prior year quarter while sales in North America declined nearly 20 percent as a result of the weak U.S. economy, including lower sales to large rental customers, due in part to smaller, but more frequent orders spread out over the year.

Operating income in the second quarter increased 132.5 percent to $123.6 million, or 15.2 percent of sales, compared to the prior year quarter operating income of $53.2 million, or 7.5 percent of sales. Operating income in the second quarter benefited from higher sales, favorable product and customer mix and favorable foreign exchange rates. Also, prior year second-quarter results included a charge of $8.5 million related to expensing the revaluation of inventory at the acquisition date of JLG Industries.

The company reported that EPS increased 19.5 percent to $1.47 for the first six months of fiscal 2008 on sales of $3.3 billion and net income of $109.9 million, compared to $1.23 for the first six months of fiscal 2007 on sales of $2.7 billion and net income of $92.1 million. JLG was included in the company's operations for the entire six months of fiscal 2008 compared to only four months in the prior year following the December 2006 acquisition of the company.

Operating income increased 27.4 percent to $278.1 million, or 8.5 percent of sales, in the first six months of fiscal 2008 compared to $218.4 million, or 8.2 percent of sales, in the first six months of fiscal 2007. Increased operating income compared to the prior year was driven primarily by the inclusion of JLG results for a full six months in fiscal 2008 and increased defense segments sales, offset in part by lower earnings in the commercial and fire & emergency segments due to the weak U.S. economy and higher corporate costs largely due to higher personnel costs and information technology spending to support the company's growth objectives and increased stock-based compensation expense.

The company reaffirmed its fiscal 2008 EPS estimate range of $4.15 to $4.35 compared to EPS of $3.58 in fiscal 2007. The company expects its third-quarter EPS to be in the range of $1.40 to $1.50. These estimates reflect the company's performance in the first half of the year, anticipated continued strong performance in the access equipment and defense segments and an improvement in the effective income tax rate, offset by weaker economic conditions negatively impacting the commercial segment and, to a lesser extent, the fire & emergency segment.

Oshkosh Corp.’s board of directors declared a quarterly dividend of $0.10 per share of common stock. The dividend, unchanged from the immediately preceding quarter, will be payable May 23, to shareholders of record as of May 15.

Headquartered in Oshkosh, Wis., Oshkosh Corp. is a designer, manufacturer and marketer of a broad range of specialty access equipment, military, commercial and fire, and emergency vehicles and vehicle bodies.