Oshkosh Corporation First Quarter Fiscal 2012 January 31, 2012 MISSION DRIVEN : To Move the World at Work Charles L. Szews President and Chief Executive Officer David M. Sagehorn Executive Vice President and Chief Financial Officer Patrick N. Davidson Vice President, Investor Relations
Forward Looking Statements This presentation contains statements that the Company believes to be “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 Company’s 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 press release, 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 Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the expected level and timing of DoD procurement of products and services and funding thereof, including the impact of the DoD’s allocation of certain tires which will restrict and delay certain FHTV sales; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during periods of global economic uncertainty, lower municipal spending and tight credit markets; the Company’s ability to produce vehicles under the FMTV contract at targeted margins; the duration of the ongoing global economic weakness, which could lead to additional impairment charges related to many of the Company’s intangible assets and/or a slower recovery in the Company’s cyclical businesses than equity market expectations; the potential for the U.S. government to competitively bid the Company’s Army and Marine Corps contracts; the consequences of financial leverage, which could limit the Company’s ability to pursue various opportunities; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to pass on to customers price increases to offset higher input costs; risks related to costs and charges as a result of facilities consolidation and alignment, including that anticipated cost savings may not be achieved; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks related to production or shipment delays arising from quality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; the potential for increased costs relating to compliance with changes in laws and regulations; risks related to disruptions in the Company’s distribution networks; risks related to actions of activist shareholders; and the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission, including the Form 8-K filed January 31, 2012. The Company assumes no obligation, and disclaims any obligation, to update information contained in this presentation. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all. MISSION DRIVEN: To Move the World at Work OSK First Quarter 2012 Earnings Call January 31, 2012 2
Oshkosh Q1 FY12 Results Sales of $1.9 billion and EPS of $0.42 OSK Fiscal Q1 Performance FMTV profitable this quarter, ahead of most recent $3,000 $3.00 expectations $2,500 $2.50 (millions) Net Sales $1,879 Access equipment recovery $2,000 $2.00 $1,701 EPS* continuing $1,500 $1.50 $1.09 Investing in MOVE strategy $1,000 $1.00 $0.42 – Cost optimization $500 $0.50 – New product innovations $0 $0.00 2012 2011 Net Sales EPS – Emerging markets * Fiscal 2012 EPS includes discrete income tax benefits of $0.07 per share, after-tax restructuring related costs of $0.05 per share, foreign currency transaction losses of $0.04 per share and proxy contest costs of $0.02 per share. Fiscal 2011 EPS includes discrete income tax benefits of $0.10 per share and after-tax restructuring related costs of $0.15 per share. Restructuring related costs include certain non-GAAP restructuring costs. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure can be found at the back of these slides. MISSION DRIVEN: To Move the World at Work OSK First Quarter 2012 Earnings Call January 31, 2012 3
Market Conditions President’s FY12 defense budget signed – FY13 budget details not yet available – Oshkosh is well positioned for new vehicle programs Bridge contract for FHTV through FY14 Access equipment replacement demand continues to drive higher sales – North America remains strongest region – Previously announced price increase effective January 2012 U.S. fire truck market remains weak – Robust global opportunities have longer sales cycle Improving RCV outlook MISSION DRIVEN: To Move the World at Work OSK First Quarter 2012 Earnings Call January 31, 2012 4
Operations Update Defense segment – Strong progress from FMTV project teams Access equipment segment – European restructuring largely complete – Reduced supply chain constraints Benefiting from lean driven efficiencies in commercial segment Fire & emergency segment restructuring – Addressing inefficiencies related to relocation of ambulance and mobile medical unit production to Florida MISSION DRIVEN: To Move the World at Work OSK First Quarter 2012 Earnings Call January 31, 2012 5
Consolidated Results (Dollars in millions, First Quarter Comments except per share amounts) 2012 2011 Sales impacted by: Net Sales $1,878.6 $1,700.8 + FMTV volume + Traditional access equipment % Change 10.5% (30.1)% demand – Lower FHTV vehicle and M-ATV aftermarket parts volume Operating Income $75.3 $168.7 Margins impacted by: % Change (55.3)% (51.7)% – Adverse sales mix in defense % Margin 4.0% 9.9% segment – Higher material costs in access equipment segment Earnings Per Share* $0.42 $1.09 $40 million of debt % Change (61.5)% (48.1)% reduction * Operating income results include restructuring related costs of $6.8 million and proxy contest costs of $2.8 million in fiscal 2012 and restructuring related costs of $14.7 million in fiscal 2011. Fiscal 2012 EPS includes discrete income tax benefits of $0.07 per share, after-tax restructuring related costs of $0.05 per share, foreign currency transaction losses of $0.04 per share and proxy contest costs of $0.02 per share. Fiscal 2011 EPS includes discrete income tax benefits of $0.10 per share and after-tax restructuring related costs of $0.15 per share. Restructuring related costs include certain non-GAAP restructuring costs. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure can be found at the back of these slides. MISSION DRIVEN: To Move the World at Work OSK First Quarter 2012 Earnings Call January 31, 2012 6
Updated Expectations for FY12* Measure Defense Access Fire & Commercial Equipment Emergency Sales ~15% lower 25% - 30% Up slightly ~15% higher higher Operating Nearly 5% Mid to high Very low Low single Income single digits single digits digits Margin Slightly higher corporate expenses Tax rate of 32% to 34% CapEx of $85 to $95 million Slightly positive free cash flow * All comparisons are vs. FY11. MISSION DRIVEN: To Move the World at Work OSK First Quarter 2012 Earnings Call January 31, 2012 7
MISSION DRIVEN : To Move the World at Work For information contact: Patrick N. Davidson Vice President, Investor Relations 920 966-5939 pdavidson@oshkoshcorp.com Tina Schmiedel Director, Investor Relations 920 233-9235 tschmiedel@oshkoshcorp.com
Appendix: Defense (Dollars in millions) First Quarter Comments 2012 2011 Sales impacted by: Net Sales $1,051.0 $1,113.7 Lower FHTV vehicle and M-ATV aftermarket parts % Change (5.6)% (40.1)% sales + Higher FMTV sales Operating Income $92.4 $217.9 Margins impacted by: % Margin 8.8% 19.6% Adverse sales mix FMTV profitable ahead of most recent expectations Backlog down 21% vs. prior year to $4.3 billion MISSION DRIVEN: To Move the World at Work OSK First Quarter 2012 Earnings Call January 31, 2012 9
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