MOVE Strategy Evolving and Expected to Drive Increased Value for
Shareholders
Raises Fiscal 2016 Adjusted EPS Estimate to Range of $2.85 to $3.00
Expects Year-Over-Year Growth in Revenue, Operating Income and EPS
in Fiscal 2017
Announces Fiscal 2017 EPS Estimate Range of $3.00 to $3.40
OSHKOSH, Wis.--(BUSINESS WIRE)--
Oshkosh Corporation (NYSE: OSK), a leading manufacturer of specialty
vehicles and vehicle bodies, is announcing at its Analyst Day being held
today that the Company is increasing its fiscal 2016 financial estimates
and expects to deliver year-over-year growth in revenue, operating
income and earnings per share (EPS) in fiscal 2017.
“Oshkosh Corporation is a different integrated global industrial company
that is delivering solid results, underscored by our updated fiscal 2016
estimates and confidence that we will build on this performance in
fiscal 2017,” said Wilson R. Jones, Oshkosh Corporation president and
chief executive officer. “Looking to next year, we anticipate increases
in revenue, operating income and EPS despite expected lower sales and
operating income in our access equipment segment.
“Longer-term, we expect strong free cash flow over the cycle to provide
capital allocation alternatives that will benefit our shareholders. We
expect to achieve our fiscal 2017 estimates through the continued
execution and evolution of our MOVE strategy, which has delivered for
customers and shareholders alike over the last several years. We look
forward to sharing more about our objectives and plans to continue
driving shareholder value this morning during our Analyst Day.”
The Company’s updated estimates for fiscal 2016 include:
-
Revenues of $6.1 billion to $6.2 billion
-
Adjusted operating income of $360 million to $375 million
-
Adjusted EPS of $2.85 to $3.00
The Company now believes it will deliver stronger than previously
expected performance in the fiscal fourth quarter of 2016 as a result of
expected higher deliveries of M-ATVs in the Company’s defense segment,
access equipment segment sales at the high end of prior expectations and
a lower tax rate.
The Company’s initial estimates for fiscal 2017 include:
-
Revenues of $6.5 billion to $6.7 billion
-
Operating income of $390 million to $430 million
-
EPS of $3.00 to $3.40
At the Company’s Analyst Day, the Oshkosh leadership team will review
each of its four business segments and provide updates on expected
segment performance in fiscal 2016 as well as discuss each segment’s
initial outlook for fiscal 2017.
Fiscal 2016 adjusted results exclude expected restructuring charges of
$27.0 million resulting from the Company's decision to outsource certain
aftermarket parts distribution center and logistics operations in the
U.S. and Europe in the Company's access equipment segment. The Company
expects the EPS impact of these restructuring charges in fiscal 2016
will be $0.23. The Company expects to finalize the amounts of the
charges resulting from these actions in the next several weeks, so
actual amounts may be slightly different.
The Oshkosh 2016 Analyst Day presentation and webcast will be available
on the Investor Relations portion of Oshkosh’s website, at http://investor.oshkoshcorporation.com
beginning at 9:00 a.m. EDT. To access the webcast, investors should go
to www.oshkoshcorporation.com
at least 15 minutes prior to the event.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of
a broad range of specialty access equipment, commercial, fire &
emergency and military vehicles and vehicle bodies. Oshkosh Corporation
manufactures, distributes and services products under the brands of
Oshkosh®, JLG®, Pierce®, McNeilus®,
Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™,
CON-E-CO®, London® and IMT®. Oshkosh
products are valued worldwide in businesses where high quality, superior
performance, rugged reliability and long-term value are paramount. For
more information, log on to www.oshkoshcorporation.com.
®, TM All brand names referred to in this news release are
trademarks of Oshkosh Corporation or its subsidiary companies.
Forward Looking Statements
This press release 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 cyclical nature of the Company’s
access equipment, commercial and fire & emergency markets, which are
particularly impacted by the strength of U.S. and European economies and
construction seasons; the Company’s estimates of access equipment demand
which, among other factors, is influenced by customer historical buying
patterns and rental company fleet replacement strategies; the strength
of the dollar and its impact on Company exports, translation of foreign
sales and purchased materials; the expected level and timing of U.S. DoD
and international defense customer procurement of products and services
and acceptance and funding or payments thereof; the Company’s ability to
utilize material and components which it has committed to purchase from
suppliers; higher material costs resulting from production variability
due to uncertainty of timing of funding or payments from international
defense customers; risks related to reductions in government
expenditures in light of U.S. defense budget pressures, sequestration
and an uncertain DoD tactical wheeled vehicle strategy; the impact of
any DoD solicitation for competition for future contracts to produce
military vehicles, including a future FMTV production contract; the
Company’s ability to increase prices to raise margins or offset higher
input costs; increasing commodity and other raw material costs,
particularly in a sustained economic recovery; risks related to
facilities expansion, consolidation and alignment, including the amounts
of related costs and charges and that anticipated cost savings may not
be achieved; global economic uncertainty, 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; projected adoption rates of work
at height machinery in emerging markets; the impact of severe weather or
natural disasters that may affect the Company, its suppliers or its
customers; 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 compliance with the Foreign Corrupt Practices Act; the
Company’s ability to comply with complex laws and regulations applicable
to U.S. government contractors; cybersecurity risks and costs of
defending against, mitigating and responding to a data security breach;
and risks related to 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.
All forward-looking statements speak only as of the date of this press
release. The Company assumes no obligation, and disclaims any
obligation, to update information contained in this press release.
Investors should be aware that the Company may not update such
information until the Company’s next quarterly earnings conference call,
if at all.
Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally
accepted accounting principles in the United States of America (GAAP).
The Company is presenting various operating results both on a reported
basis and on an adjusted basis that excludes items that affect
comparability of results. When the Company uses adjusted operating
results that exclude certain items as described below, they are
considered non-GAAP financial measures. The Company believes excluding
the impact of these items is useful to investors in comparing the
Company’s performance to prior period results. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative for,
the Company’s results prepared in accordance with GAAP. The table below
presents a reconciliation of the Company’s presented non-GAAP measures
to the most directly comparable GAAP measures (in millions, except per
share amounts):
|
|
|
Fiscal 2016 Estimates
|
|
|
|
Low
|
|
High
|
Operating income
|
|
|
|
|
|
Adjusted amount presented
|
|
$
|
360.0
|
|
|
$
|
375.0
|
|
|
Restructuring charges
|
|
|
(27.0
|
)
|
|
|
(27.0
|
)
|
|
GAAP
|
|
$
|
333.0
|
|
|
$
|
348.0
|
|
|
|
|
|
|
|
Earnings per share - diluted
|
|
|
|
|
|
Adjusted amount presented
|
|
$
|
2.85
|
|
|
$
|
3.00
|
|
|
Restructuring charges, net of tax
|
|
|
(0.23
|
)
|
|
|
(0.23
|
)
|
|
GAAP
|
|
$
|
2.62
|
|
|
$
|
2.77
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160923005391/en/
Oshkosh Corporation
Financial:
Patrick Davidson
Vice
President, Investor Relations
920.966.5939
or
Media:
Katie
Hoxtell
Assistant Marketing Manager
920.235.9151 x25324
Source: Oshkosh Corporation