JLG parent to write down assets

Oshkosh Corporation, parent of access equipment manufacturer JLG in the US, said it is likely to charge $1.2 - $1.5 billion (€0.9 - 1.1 billion) against assets in the second quarter 2009. The company said the non-cash charge would reflect the write-down of goodwill and other assets that do not depreciate.

Financial accounting standards in the US require companies to assess their goodwill and similar assets annually or if circumstances indicate a possible decline in value. Oshkosh "...determined that indicators of potential impairment ...were present as a result of the sustained decline in the price of the company's common stock...as well as the further deteriorating macro-economic environment, particularly in construction markets in the United States and Europe."

Robert Bohn, Oshkosh Corporation chairman and CEO, said, "While the impairment charges are being driven by the short-term economic environment, we believe the long-term prospects remain promising for our market-leading businesses. The impairment charges are entirely non-cash. Oshkosh remains a strong company and continues to have sufficient liquidity."