Oshkosh Corporation Reports Fiscal 2018 Second Quarter Results
Oshkosh Corporation (NYSE: OSK) reported fiscal 2018 second quarter net income of $110.8 million, or $1.47 per diluted share, compared to $44.3 million, or $0.58 per diluted share, in the second quarter of fiscal 2017.
Results for the second quarter of fiscal 2018 included after-tax charges and inefficiencies of $5.8 million associated with restructuring actions in the access equipment and commercial segments. Results for the second quarter of fiscal 2017 included after-tax charges of $13.7 million associated with restructuring actions in the access equipment segment. Excluding these charges and inefficiencies, adjusted net income was $116.6 million, or $1.54 per diluted share, in the second quarter of fiscal 2018 compared to $58.0 million, or $0.76 per diluted share, in the second quarter of fiscal 2017.
Comparisons in this news release are to the corresponding period of the prior year, unless otherwise noted. Consolidated net sales in the second quarter of fiscal 2018 were $1.89 billion, an increase of 16.6 percent compared to the second quarter of fiscal 2017. The Company reported double-digit percentage sales growth in all nondefense segments. Consolidated operating income increased 93.9 percent to $155.9 million, or 8.3 percent of sales, in the second quarter of fiscal 2018 compared to $80.4 million, or 5.0 percent of sales, in the second quarter of fiscal 2017.
The increase in operating income in the second quarter of fiscal 2018 was primarily a result of the impact of higher consolidated sales volume, improved performance in the fire & emergency segment and lower costs related to restructuring actions. Excluding $7.0 million of pre-tax charges and inefficiencies related to restructuring actions in the access equipment and commercial segments, adjusted operating income in the second quarter of fiscal 2018 was $162.9 million or 8.6 percent of sales. Excluding $17.2 million of pre-tax restructuring-related charges in the access equipment segment, adjusted operating income in the second quarter of fiscal 2017 was $97.6 million, or 6.0 percent of sales.
“We are pleased to report another quarter of solid results highlighted by growth in revenue, adjusted operating income and adjusted earnings per share,” said Wilson R. Jones, president and chief executive officer of Oshkosh Corporation. “We continued to benefit in the quarter from a positive economic environment in the United States and strong demand globally for our products. We are also experiencing some challenges related to the positive economic environment, including a tight labor market, a more constrained supply chain and higher logistics and material costs. We are proactively addressing these headwinds, including implementing steel and aluminum surcharges in our non-defense segments.
“During the quarter, our defense segment was awarded the U.S. Army’s FMTV A2 contract providing our team with another tactical wheeled vehicle program of record and solidifying our position as the United States’ premier manufacturer of world class military vehicles. This award gives us visibility to supply the United States military with these impressive medium payload vehicles well into the next decade.
“As a result of our solid second quarter performance and our positive outlook for the remainder of the year, we are raising our full-year fiscal 2018 earnings per share estimate range to $5.10 to $5.55 and our adjusted earnings per share estimate range to $5.40 to $5.85,” said Jones.
The rest of the company’s financial report can be found here: Oshkosh Corporation Reports Fiscal 2018 Second Quarter Results
