Oshkosh Q2 Profit Rises; Lifts 2018 Outlook

(RTTNews) - Oshkosh Corp. (OSK) reported fiscal 2018 second quarter net income of $110.8 million, or $1.47 per share, up from $44.3 million, or $0.58 per 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 share, in the second quarter of fiscal 2018 compared to $58.0 million, or $0.76 per share, in the second quarter of fiscal 2017.

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 non-defense segments.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share and revenues of $1.74 billion for the second-quarter. Analysts' estimates typically exclude special items.

As a result of the combined impacts of the positive second quarter results, improved demand outlook for access equipment sales, challenges related to the ramp up in production in the access equipment segment and material cost increases, the Company raised its fiscal 2018 full year outlook. The Company now expects consolidated sales to be $7.4 billion to $7.6 billion, an increase of $300 million from the Company's previous sales estimate range of $7.1 billion to $7.3 billion. All of the increase in expected sales is attributable to the access equipment segment.

The Company now expects its fiscal 2018 consolidated operating income to be $540 million to $590 million. Excluding anticipated charges and inefficiencies associated with announced restructuring actions in the access equipment and commercial segments, the Company expects its fiscal 2018 adjusted operating income to be $575 million to $625 million, compared to its previous estimated adjusted operating income range of $550 million to $600 million. The increase is attributable to expected higher sales in the access equipment segment and improved margins in the defense and fire & emergency segments, offset in part by expected lower margins in the access equipment segment.

The Company now expects its fiscal 2018 earnings per share to be in the range of $5.10 to $5.55. Excluding anticipated charges and inefficiencies associated with announced restructuring actions in the access equipment and commercial segments as well as the impact of one-time discrete items associated with tax reform in the U.S., the Company expects its fiscal 2018 adjusted earnings per share to be in the range of $5.40 to $5.85, compared to the prior adjusted earnings per share estimated range of $5.00 to $5.45.

Wall Street currently is looking for fiscal year 2018 earnings of $5.34 per share on annual revenues of $7.31 billion.