Oshkosh Corporation reported net sales increased 2.1 percent to $952.5 million in the third quarter of fiscal 2016 for JLG Industries Inc., its access equipment segment. The increase in sales was primarily due to higher telehandler unit sales in North America, offset in part by a challenging pricing environment.
JLG's operating income decreased 10.4 percent to $122.1 million, or 12.8 percent of sales, in the third quarter of fiscal 2016 compared to $136.4 million, or 14.6 percent of sales, in the third quarter of fiscal 2015. The decrease in operating income was primarily the result of a challenging pricing environment and higher incentive compensation expense, offset in part by lower spending on engine emissions standards changes and the impact of higher sales volume. In the third quarter of fiscal 2015, the access equipment segment recorded a reduction in accrued incentive compensation expense as a result of lowering its fiscal 2015 projected results.
“Our access equipment segment continues to manage production levels while delivering high-quality aerial products in a market that we expect to be down compared with fiscal 2015,” said Wilson Jones, president and chief executive officer of Oshkosh Corporation. “The team made great progress this quarter lowering inventory as we work to optimize our working capital.