Oshkosh Corp. last week reported fiscal 2013 fourth-quarter net income of $35.7 million, or $0.40 per diluted share, compared to $83.7 million, or $0.91 per diluted share, in the fourth quarter of fiscal 2012. However, access equipment segment sales increased 8.9 percent to $780.6 million for the fourth quarter of fiscal 2013 compared to the prior-year fourth quarter. The increase was principally the result of higher unit volumes in North America, the realization of previously announced price increases and higher aftermarket parts & service sales, which more than offset lower sales volume in Australia.
In the fourth quarter of fiscal 2013, access equipment segment operating income increased 36.6 percent to $81.2 million, or 10.4 percent of sales, compared to prior-year fourth-quarter operating income of $59.5 million, or 8.3 percent of sales.
Overall results for the fourth quarter of fiscal 2013 were adversely impacted by a $5.5 million after-tax non-cash impairment charge related to an intangible asset in the access equipment segment and after-tax costs of $2.4 million related to the extension of a union contract with defense segment production employees.
Consolidated net sales in the fourth quarter of fiscal 2013 were $1.73 billion, a decrease of 15.8 percent compared to the prior-year fourth quarter. Higher sales in the company’s non-defense segments were more than offset by lower defense segment sales.
Consolidated operating income in the fourth quarter of fiscal 2013 was $65.2 million, or 3.8 percent of sales, compared to $98.3 million, or 4.8 percent of sales, in the prior-year fourth quarter. Operating income margins in the fourth quarter of fiscal 2013 declined primarily as a result of lower volume in the company’s defense segment and higher corporate operating expenses, offset in part by favorable performance in the company’s access equipment and commercial segments.
“We delivered fourth-quarter results that exceeded the high end of our most recently announced estimated earnings range, finishing up a year that significantly exceeded our initial expectations,” said Charles Szews, Oshkosh Corp. CEO. “Continued strong demand for access equipment in North America and improved demand for concrete mixers in the U.S. partially offset a significant sales decline in our defense segment in the fourth quarter.
“The power of the company’s MOVE strategy was evident in fiscal 2013, as each non-defense segment — access equipment, fire & emergency and commercial — increased operating income margins over the prior year. We believe we are on track to achieve our fiscal 2015 earnings per share target range of $4.00 to $4.50.
“Today, we introduced our initial outlook for fiscal 2014, with earnings expectations of $3.10 to $3.40 per share. We expect improved performance in fiscal 2014 in each of our non-defense segments as we continue to implement our MOVE initiatives and take advantage of expected recovering markets.”
The company also announced it has reinstated a dividend. The board of directors announced a quarterly cash dividend of $0.15 per share payable on Dec. 2 to shareholders of record on Nov. 18.
Oshkosh reported net sales for the fiscal year ended Sept. 30, 2013 of $7.67 billion and net income of $316.3 million, or $3.53 per diluted share. This compares with net sales of $8.14 billion and net income of $245.2 million, or $2.67 per diluted share in fiscal 2012.
The company also announced its fiscal 2014 earnings per share expectations of $3.10 to $3.40 on projected net sales of $6.6 billion to $6.9 billion.
Oshkosh Corp. is a maker of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. It manufactures, distributes and services products under the brands of Oshkosh, JLG, Pierce, McNeilus, Jerr-Dan, Frontline, CON-E-CO, London and IMT.
