Oshkosh Corporation Third Quarter Fiscal 2012 July 26, 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 presentation, 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 cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially in the current environment where there are conflicting signs regarding the future global economic outlook; the expected level and timing of the U.S. Department of Defense (DoD) procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; risks that profit on the definitization of contracts with the DoD could differ from the Company’s estimates; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to increase prices to raise margins or offset higher input costs; risks related to the Company’s exit from its ambulance and European mobile medical businesses, including the amounts of related costs and charges; risks related to facilities consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; 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 Company or 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; 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; 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 today. 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 Third Quarter 2012 Earnings Call July 26, 2012 2
Oshkosh Q3 FY12 Results Sales of $2.18 billion and EPS* of $0.82 OSK Fiscal Q3 Performance Another quarter of solid performance $3,000 $3.00 $2,500 $2.50 Growth in all non-defense $2,176 $2,023 Net Sales (millions) segments $2,000 $2.00 EPS* – Led by continued recovery in $1,500 $1.50 access equipment segment $0.82 $1,000 $1.00 $0.75 Executive promotions to focus $500 $0.50 on MOVE and strengthen $0 $0.00 organization FY12 FY11 Net Sales EPS * The current year quarter included $6.3 million ($0.07 per share) of tax benefits related to discrete tax items. MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 2012 3
Market Conditions Strong global access equipment sales – Solid industry metrics driving North American replacement demand – Product adoption & infrastructure buildout expected to drive emerging markets demand – Monitoring European and emerging market conditions Received order for 750 M-ATVs from U.A.E. – Working on additional international defense opportunities Strong international defense interest at Eurosatory trade show in June Continuing success with international orders in fire & emergency segment Slow improvement in construction trends supporting improved commercial segment sales MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 2012 4
Operations Update Oshkosh Operating System driving organizational momentum Improved margins in access equipment segment FMTV program margins continued to improve – Modified production and delivery schedules for FY13 & FY14 Rationalizing two smaller businesses – Ambulance – European mobile medical vehicles Commercial segment benefiting from streamlining operations MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 2012 5
Consolidated Results (Dollars in millions, except per share amounts) Third Quarter Comments 2012 2011 Sales impacted by: Net Sales $2,176.3 $2,022.9 + Non-defense volumes % Change 7.6% (17.1)% + Higher FMTV volume – Lower FHTV volume – Lower defense Operating Income $124.5 $126.0 aftermarket parts % Change (1.2)% (63.0)% Margins impacted by: % Margin 5.7% 6.2% – Adverse sales mix in defense segment + Higher access equipment and Earnings Per Share $0.82 $0.75 commercial segment margins % Change 9.3% (67.5)% EPS includes $0.07 benefit from discrete tax items in current year quarter MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 2012 6
Updated Expectations for FY12 (1) Measure Access Defense Fire & Commercial Equipment Emergency (2) Sales ~ 40% higher ~ 10% lower Up slightly ~ 20% higher Operating Income 7.5% - 8.0% 5.0% - 5.5% Small loss 3.5% - 4.0% Margin Flat corporate expenses Tax rate of 29% to 30% CapEx of $50 to $60 million Modestly positive free cash flow (1) All comparisons are vs. FY11 (2) Before impact of expected costs associated with exiting ambulance and European mobile medical businesses MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 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: Access Equipment (Dollars in millions) Comments Third Quarter Sales impacted by: 2012 2011 Replacement demand in Net Sales $814.6 $580.1 North America Broad international demand % Change 40.4% (18.4)% Price realization Margins impacted by: Operating Income $88.2 $29.5 + Improved absorption related % Change 199.7% (8.1)% to higher volumes % Margin 10.8% 5.1% + Price realization + Improved manufacturing efficiencies - Material costs Backlog up 19% vs. prior year to $730 million MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 2012 9
Appendix: Defense (Dollars in millions) Comments Third Quarter Sales impacted by: 2012 2011 Lower FHTV and Net Sales $958.5 $1,107.0 M-ATV volume % Change (13.4)% (34.9)% Lower aftermarket parts sales + Higher FMTV volume Operating Income $40.2 $112.5 Margins impacted by: % Change (64.3)% (63.0)% Adverse sales mix % Margin 4.2% 10.2% Undefinitized contract adjustments Lack of FMTV startup costs Backlog down 33% vs. prior year to $3.3 billion MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 2012 10
Appendix: Fire & Emergency (Dollars in millions) Comments Third Quarter Sales impacted by: 2012 2011 + International volume Net Sales $246.1 $216.0 + Air Force deliveries % Change 13.9% (2.7)% Margins impacted by: + Improved absorption Operating Income $6.4 $4.4 related to higher volumes % Change 44.2% (75.8)% Backlog up 16% vs. prior % Margin 2.6% 2.0% year to $530 million* * Includes backlog of $29.5 million related to businesses to be exited. MISSION DRIVEN: To Move the World at Work OSK Third Quarter 2012 Earnings Call July 26, 2012 11
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