Oshkosh shifts focus towards industry

JLG's parent company Oshkosh has announced its intention to develop from a "USA focused manufacturer, anchored in defence" to a "globally balanced and integrated industrial company".

The company has identified that international markets represent strong opportunities and that green energy efficient solutions will become increasingly important. In the access sector aging fleets and rising used equipment values are positive indicators. Oshkosh believes that major non-defence markets have significant growth potential which approaches $500 million in recovery.

Conversely the US defence budget looks unsettled, troops are withdrawing from Iraq and domestic defence spending reductions are expected although global instability, particularly in the Middle East, may promote custom from other countries.

Oshkosh is continuing to pursue a strategy of reducing costs "aggressively," focusing on optimising cash flow, preserving balance sheet strength and seeking organic growth. At this time the company does not think that the sale or disposal of assets will add fair value.

Following a comprehensive strategic planning process Oshkosh is implementing a strategy with the acronym MOVE. MOVE stands for Market recovery and growth; Optimise cost and capital structure; Value innovation; Emerging market expansion.

The intension is to take full advantage of economic recovery and win new customers; to operate efficiently for the benefit of customers and shareholders; to continue product innovation and drive international growth in targeted regions.