Powered by a 61.4 percent increase in access equipment sales in the second quarter of fiscal 2012, Oshkosh Corp., Oshkosh, Wis., the parent company of JLG, McConnellsberg, Pa., reported an 18.9 percent increase in second quarter net sales to $2.08 billion compared to the same time period last year.
The company said increased replacement-driven demand for aerial work platforms and telehandlers in the access equipment segment and higher defense segment family of medium tactical vehicles (FMTV) sales were offset in part by the expected decline in sales of family of heavy tactical vehicles (FHTV) and aftermarket parts, also in the defense segment.
Consolidated operating income in the second quarter of fiscal 2012 was $75.9 million, or 3.7 percent of sales, compared to $132.4 million, or 7.6 percent of sales, in the prior year second quarter. Increased earnings on higher access equipment segment sales were more than offset by lower defense segment earnings that resulted from an adverse product mix.
Access equipment segment sales increased 61.4 percent to $760.4 million for the second quarter of fiscal 2012 compared to the prior year second quarter principally as a result of higher unit volumes and the realization of previously announced price increases. Sales grew by double-digit percentages compared to the prior year quarter in all major regions of the globe, with the largest increase in North America driven largely by replacement of aged equipment.
In the second quarter of fiscal 2012, access equipment segment operating income increased 285.3 percent to $68.4 million, or 9.0 percent of sales, compared to prior year second quarter operating income of $17.7 million, or 3.8 percent of sales. The increase in operating results reflected higher volume, the realization of previously announced price increases, improved product mix and improved absorption related to higher sales volume, offset in part by higher raw material costs and higher new product development spending.
“Strong performance by our access equipment segment drove quarterly results above our expectations,” said Charles Szews, Oshkosh Corp. president and CEO. “We believe customer actions and industry metrics point to a sustained recovery in global access equipment markets. Our success in responding to this recovery enables us to raise our performance outlook for the full fiscal year 2012.”
The company reported net sales for the first six months of fiscal 2012 of $3.95 billion and net income attributable to Oshkosh Corp. of $76.2 million, or $0.83 per share. This compares with net sales of $3.45 billion and net income attributable to Oshkosh Corp. of $167.5 million, or $1.83 per share, in the first six months of the prior year. The decrease in net income attributable to Oshkosh Corp. was primarily attributable to changes in the defense segment where an adverse product mix negatively impacted operating income comparisons, offset in part by improved access equipment segment results.
However, the company is increasing its outlook for fiscal 2012 primarily due to stronger than expected orders and sales in the access equipment segment in the second quarter of fiscal 2012. The company now expects sales in the access equipment segment will be 35 percent to 40 percent higher in fiscal 2012 compared to fiscal 2011 with operating income margins of 7.5 percent to 8.0 percent in the segment.