Access sales make big impact on Oshkosh Q1 results
By Maria Hadlow31 January 2012
Oshkosh's first quarter profits of 2012 were down compared to 2011, but in the company's access equipment sector (JLG) external sales increased 73.8% to $505.1 million in the same time frame.
Overall Oshkosh sales were up 10.5% to $1.88 billion in 2012 compared to 2011 with international sales increasing 40%. The company said that an increase in demand for aerial work platforms, telehandlers and the family of medium tactical vehicles was offset by expected declines in sales of the family of heavy tactical vehicles and aftermarket parts for the MRAP-all terrain vehicle (M-ATV).
President and chief executive officer Charles Szews said, "Our access equipment segment reported strong orders in the first quarter, and we expect our previously announced 5% price increase will benefit margins in this segment during the remainder of fiscal 2012."
In the access equipment sector Oshkosh reported double-digit sales increases in all regions of the world and across all product lines. The company said that these results were driven by replacement of older equipment in North America and parts of Europe as well as economic growth and increased product adoption in emerging markets.
The access equipment segment made a profit of $13.1 million equivalent to 2.1% of sales, for the first quarter of 2012 compared to an operating loss of $16.7 million, or 5.1% of sales, in the prior year quarter. The increase in operating results was attributed to a higher volume of sales coming from external customers and lower facility rationalisation costs - at the beginning of last year substantial percentage of JLG's income still came from the manufacture of the Oshkosh MATV. Profits were offset by an increase in raw material prices and increased investment in new product development.