Tough Market Continues to Haunt Access Equipment

In its fiscal 2009 third quarter results statement, Robert Bohn, chairman and CEO of Oshkosh Corp., Oshkosh, Wis., said it expects the company’s fourth quarter of fiscal 2009 will have solid performance from its defense and fire and emergency segments while its access equipment, including JLG Industries, will continue to face tough market conditions. The company reported today in its fiscal third quarter 2009 results that sales of aerial work platforms, telehandlers, and concrete placement products were all down 75 percent or more, contributing to the $22 million loss from continuing operations for the quarter. Net sales for the quarter reached $1.2 billion.

“Oshkosh continues to aggressively focus on cost reductions, operational improvements, and leaning out our factories,” Bohn said. “We expect to emerge from this recession as a stronger, more nimble and more competitive company.”

Access equipment segment sales decreased 77 percent for the quarter, compared with the third fiscal quarter of 2008, to $211.2 million. Sales reflected substantially lower global demand arising from recessionary economies and tight credit markets. Equipment sales for the North American and the European, African and Middle Eastern regions each declined about 85 percent compared with the third quarter of fiscal 2008.

The access equipment segment incurred an operating loss of $71.2 million, or 33.7 percent of sales, for the third quarter of fiscal 2009 compared with operating income of $125.2 million, or 13.6 percent of sales, in the prior year quarter. The decrease in operating results was primarily the result of lower sales volume and the related under absorption of fixed costs, additional credit loss provisions of $26.5 million and higher raw material costs, offset in part by lower operating expenses as a result of cost reduction initiatives.