Oshkosh Profit Falls On Slow Defense Sales
OSHKOSH, Wis. (AP) — Truck maker Oshkosh Corp. said Tuesday that its profit fell by nearly two-thirds in its fiscal first quarter on lower sales of some military vehicles and parts.
Lower spending by cities, fewer sales to airports and "operational challenges" at a Florida plant hurt sales of fire and other emergency vehicles in the quarter, the company added. It said performance at the Florida plant would improve as the year goes along.
Net income was $38.9 million, or 42 cents per share, for the three months ended Dec. 31 compared with $99.6 million, or $1.09 per share, a year earlier.
Excluding expenses related to a proxy fight, currency-exchange losses and tax benefits, the company said it would have earned 41 cents per share.
Analysts surveyed by FactSet expected earnings of 34 cents per share.
Revenue rose 10.5 percent to $1.88 billion from $1.7 billion a year ago, topping analysts' forecast of $1.85 billion.
Defense segment revenue fell 5.6 percent to $1.05 billion on lower sales of heavy tactical vehicles and parts.
Oshkosh has been dealing with a proxy fight from activist investor Carl Icahn. On Friday, the company said 12 of its 13 nominees for the company board had been elected, with one seat too close to call.
Icahn, who owns about 9.5 percent of Oshkosh shares, had offered a slate of six candidates. The company is expected to announce the outcome of the voting for all 13 seats this week.