Oshkosh (OSK) Falls on Weaker 3rd Quarter Earnings
Founded in 1917, Oshkosh manufactures and markets a wide range of specialty vehicles and vehicle bodies.
Shares of Oshkosh, Wisconsin, based Oshkosh Corporation (OSK) fell on Tuesday in a mixed day in the financial markets overall. The company's stock was down 13.82%, falling $7.35 per share to close at $45.84, on volume of 4,293,362 shares. The company reported weaker earnings for its fiscal 2014 third quarter results.
On Tuesday the company announced lower than expected results for it's fiscal third quarter ended on June 30th. It also cut its full year earnings outlook as a result of an ongoing decline in equipment sales from its defense segment. Declines in the defense division more than offset increased sales in the access equipment and commercial segments.
Compared to the third quarter of 2013, consolidated revenues were down 12.3% to $1.93 billion, while net income fell to $105.1 million, down from $148.4 a year earlier. The company also cut its 2014 full year earnings target from its previously announced range of $3.40-$3.65 per share, to $3.40-$3.55 per share.
For the nine months ended June 30th, net income fell to $5,140.5 billion in 2014, from $5,938.6 billion for the first nine months of 2013, while net income fell to $231.5 million in 2014, from $281.7 million for the first nine months of 2013.
Despite the negative results across the board, Oshkosh Chief Executive Officer Charlie Szews had an optimistic view of the company's future. "We are pleased with our overall third quarter results, led by record performance in the access equipment segment and breakthrough improvement in the commercial segment," he wrote. "Each area of focus in our MOVE strategy - powered by the Oshkosh Operating System - is helping us to meet our performance targets. This balanced strategy is guiding our team to produce results from the initiatives that we can control by optimizing costs, innovating to meet customers' evolving demands and winning new business in emerging markets, even as some of our markets continue to recover at an uneven pace."
Despite increases in other segments, the defense segment has experienced sharp declines as a result of lower sales to the US Department of Defense. For the third quarter, defense segment sales declined 46.5% from the same period in 2013. Net income from the defense segment declined 77.7% from the third quarter of 2013 to the third quarter of 2014.
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