OSHKOSH, WI (November 1, 2011) -- Oshkosh Corporation (NYSE: OSK) reports fiscal 2011 fourth quarter income from continuing operations of $37.5 million, or $0.41 per share, a 68% decrease compared to income from continuing operations of $116.6 million, or $1.28 per share, in the fourth quarter of fiscal 2010.
Sales to external customers in the access equipment segment, served by JLG, increased 60.7 percent to $619.6 million for the fourth quarter of fiscal 2011 compared to the prior year fourth quarter. Oshkosh attributes the surge primarily to demand for replacement equipment in North America and parts of Europe. Including sales to the defense segment, access equipment sales increased 25.5 percent for the fourth quarter.
The sales increase resulted in a fourth-quarter leap in access-segment operating income of 376.7 percent to $34.8 million, or 5.2 percent sales.
Oshkosh's consolidated net sales in the fourth quarter of fiscal 2011 were $2.12 billion, a slight increase compared to the prior year fourth quarter. Higher sales of Family of Medium Tactical Vehicles (FMTV) and increased demand for aerial work platforms and telehandlers in the access equipment segment were almost entirely offset by expected lower MRAP-All Terrain Vehicle (M-ATV) sales, a decrease in TAK-4 independent suspension system kit sales to other MRAP original equipment manufacturers (OEMs) and lower fire & emergency volume.
"We are pleased with the continued improvement in our global access equipment markets during the fourth quarter, with orders rising 91 percent compared to the fourth quarter of the prior year," said Charles L. Szews, Oshkosh Corporation president and chief executive officer. "Despite the continued uncertain economic environment, rental equipment utilization 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.
"During the fourth quarter, we made significant progress on the FMTV program, as sales increased nearly 70 percent and our operating performance improved significantly on both an absolute and on a per unit basis compared with our third quarter. The FMTV program remains on the path to profitability by the second quarter of fiscal 2012.
"As we look forward to fiscal 2012, we see the opportunity to set the foundation for another period of growth for Oshkosh. We continue to execute on our MOVE strategy with initiatives aimed at improving our cost structure, accelerating new product development and growing sales in emerging markets to drive earnings growth in fiscal 2013 and beyond. By focusing our efforts in these areas, we will be in an improved position to take full advantage of the eventual recovery in our markets," stated Szews.
Factors affecting fourth quarter results for the Company's business segments included:
Defense - Defense segment sales decreased 11.9 percent to $1.17 billion for the fourth quarter of fiscal 2011 compared with the prior year fourth quarter. The decrease was primarily due to lower production under the M-ATV contract, lower M-ATV related parts & service sales and a decrease in TAK-4independent suspension system kit sales to other MRAP OEMs. These decreases were offset in part by the continued ramp-up of production under the FMTV contract. Combined M-ATV related vehicle and parts & service sales totaled $292.2 million in the fourth quarter of fiscal 2011, a decrease of $378.6 million compared to the fourth quarter of the prior year.