Oshkosh reports access orders up 91% and profit up over 370%
By Maria Hadlow01 November 2011
Oshkosh, the parent company of JLG reported a 91% rise in orders in the company's fourth quarter (ending 30 September 2011). Sales increased 60.7% to $619.6 million in the final quarter compared to 2010 and profit increased 376.7% to $34.8 million (5.2% of sales)
Charles Szews, Oshkosh president and chief executive officer said, "We are pleased with the continued improvement in our global access equipment markets during the fourth quarter, with orders rising 91% compared to the fourth quarter of the prior year. Despite the continued uncertain economic environment, rental equipment utilisation and rental rates strengthened during the fourth quarter in North America, and emerging markets continue to exhibit positive growth trends. We continue to expect strong growth in this segment in fiscal 2012."
Growth in sales was attributed to increased demand for replacement equipment in North America and parts of Europe.
The substantial increase in operating income (profit) reflected higher volume sales with external customers (the access manufacturing facility had been making parts for Oshkosh's military telehandlers during the down time) and lower facility rationalization costs, offset in part by an increase in raw material costs.
For the year end Oshkosh access equipment segment sales amounted to $2052.1 million - less on paper than last year but attributable to a large increase in external sales, profit is $65.3 million and order backlogs have a value of $729.2 million.