In its Q2 fiscal 2012 financial statement, Charles Szews, president and CEO of Oshkosh Corp., Oshkosh, Wis., said the strong performance by the access equipment segment drove the company’s quarterly results above expectations. This segment includes sales of JLG telehandlers and aerial work platforms. "We believe customer actions and industry metrics point to a sustained recovery in global access equipment markets,” he said. “Our success in responding to this recovery enables us to raise our performance outlook for the full fiscal year 2012."
Oshkosh reported fiscal 2012 second quarter net income attributable to Oshkosh Corp. of $37.3 million, or $0.41 per diluted share, compared to $67.9 million, or $0.74 per diluted share, in the second quarter of fiscal 2011. Results for the second quarter of fiscal 2012 included after-tax charges of $0.02 per diluted share related to the proxy contest in connection with the company's 2012 annual shareholders' meeting and $0.02 per diluted share related to the company's exit from its U.S. mobile medical trailer product line and workforce reductions at Pierce.
Consolidated net sales in the second quarter of fiscal 2012 were $2.08 billion, an increase of 18.9 percent compared to the prior year second quarter. 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.
Sales for the access equipment segment 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.
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. Oshkosh 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.
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