Patrick N. Davidson Vice President, Investor Relations - - PowerPoint PPT Presentation
MOVING THE WORLD AT WORK Oshkosh Corporation Charles L. Szews Chief Executive Officer Wilson R. Jones First Quarter Fiscal 2014 President and Chief Operating Officer January 28, 2014 David M. Sagehorn Executive Vice President and Chief
Charles L. Szews Chief Executive Officer Wilson R. Jones President and Chief Operating Officer David M. Sagehorn Executive Vice President and Chief Financial Officer Patrick N. Davidson Vice President, Investor Relations
MOVING THE WORLD AT WORK
This presentation contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this presentation, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially with the current outlook for U.S. and European economic recoveries; the strength of emerging market growth and projected adoption rate
and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures, sequestration and an uncertain DoD tactical wheeled vehicle strategy, including the Company’s ability to successfully manage the cost reductions required as a result of the significant projected decrease in sales levels in the defense segment; the Company’s ability to win a U.S. JLTV production contract award; the Company’s ability to increase prices to raise margins or
related to facilities consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; the duration of the ongoing global economic uncertainty, which could lead to additional impairment charges related to many of the Company’s intangible assets and/or a slower recovery in the Company’s cyclical businesses than Company or equity market expectations; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks related to production or shipment delays arising from quality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; and risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and
disclaims any obligation, to update information contained in this presentation. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.
January 28, 2014 OSK First Quarter 2014 Earnings Call 2
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margins
Net Sales
(billions)
Adjusted EPS
* Non-GAAP results. See appendix for reconciliation to GAAP results. January 28, 2014 OSK First Quarter 2014 Earnings Call 3
$1.53 $1.75 $0.63 $0.62 $0.00 $0.25 $0.50 $0.75 $1.00 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 FY14 FY13*
Net Sales EPS
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January 28, 2014 OSK First Quarter 2014 Earnings Call 4
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Expecting market to grow slowly in 2014
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January 28, 2014 OSK First Quarter 2014 Earnings Call 7
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‒ Significantly lower defense volumes + Non-defense demand
+ Strong access equipment results Lower defense segment sales Higher corporate spending
(Dollars in millions, except per share amounts)
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
January 28, 2014 OSK First Quarter 2014 Earnings Call 8
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Sales (billions) $3.35-$3.40 $1.75 - $1.80 $0.80 - $0.825 $0.85 - $0.90 Operating Income Margin 14.25% - 14.5% 3.75% - 4.0% 4.0% - 4.5% 6.75% - 7.0%
non-defense segments
sales and operating income
M-ATV sales
* Non-GAAP results. See Appendix for reconciliation to GAAP results.
January 28, 2014 OSK First Quarter 2014 Earnings Call 9
Patrick N. Davidson Vice President, Investor Relations (920) 966-5939 pdavidson@oshkoshcorp.com Jeff Watt Director, Investor Relations (920) 233-9406 jwatt@oshkoshcorp.com
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(Dollars in millions)
Higher North American AWP volume (partially Tier 4 timing) Higher European volume Price realization Lower U.S. military telehandler sales
Product mix Price realization Positive impact of military contract finalization
$468 million due to timing of orders
Strong January 2014
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* 17.2% excluding military. Non-GAAP results. See Appendix for reconciliation to GAAP results.
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Significantly lower volume due to reduced U.S. defense spending Higher international M-ATV sales
Significantly lower volume Improved operations performance and product mix
(Dollars in millions)
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(Dollars in millions)
+ Volume, primarily international airport and domestic fire truck deliveries
+ Prior year claim
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+ Higher parts & service sales + Higher concrete placement volume
+ Improved absorption on higher sales
(Dollars in millions)
January 28, 2014 OSK First Quarter 2014 Earnings Call 14
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ARFF Aircraft Rescue and Firefighting MECV Modernized Expanded Capability Vehicle AWP Aerial Work Platform MRAP Mine Resistant Ambush Protected CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada) DoD Department of Defense MTT Medium Tactical Truck EAME Europe, Africa & Middle East NPD New Product Development EMD Engineering & Manufacturing Development OI Operating Income EPS Diluted Earnings Per Share PLS Palletized Load System FHTV Family of Heavy Tactical Vehicles PUC Pierce Ultimate Configuration FMS Foreign Military Sales RCV Refuse Collection Vehicle FMTV Family of Medium Tactical Vehicles RFP Request for Proposal HEMTT Heavy Expanded Mobility Tactical Truck ROW Rest of World HET Heavy Equipment Transporter SMP Standard Military Pattern (Canadian MSVS) HEWATT HEMTT-Based Water Tender TACOM Tank-automotive and Armaments Command HMMWV High Mobility Multi-Purpose Wheeled Vehicle TDP Technical Data Package JLTV Joint Light Tactical Vehicle TFFT Tactical Fire Fighting Truck JPO Joint Program Office TPV Tactical Protector Vehicle JROC Joint Requirements Oversight Council TWV Tactical Wheeled Vehicle JUONS Joint Urgent Operational Needs Statement UCA Undefinitized Contract Action L-ATV Light Combat Tactical All-Terrain Vehicle UIK Underbody Improvement Kit (for M-ATV) LVSR Logistic Vehicle System Replacement M-ATV MRAP All-Terrain Vehicle
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comparable GAAP measures (in millions, except per share amounts):
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2013 2012 Access equipment segment sales excluding military (Non-GAAP) 661.1 $ 564.1 $ Military telehandler sales
Final pricing adjustment on multi-year military contract 7.5
668.6 $ 581.3 $ Non-GAAP operating expenses-Corporate (35.6) $ (26.4) $ Tender offer and proxy contest costs
GAAP operating expenses-Corporate (35.6) $ (42.7) $ Non-GAAP operating income 96.5 $ 96.6 $ Tender offer and proxy contest costs
GAAP operating income 96.5 $ 80.3 $ Non-GAAP income from continuing operations, net of tax 54.9 $ 56.7 $ Tender offer and proxy contest costs, net of tax
GAAP income from continuing operations, net of tax 54.9 $ 46.3 $ Non-GAAP earnings per share from continuing operations-diluted 0.63 $ 0.62 $ Tender offer and proxy contest costs, net of tax
GAAP earnings per share from continuing operations-diluted 0.63 $ 0.51 $ Fiscal Year Ended September 30, 2013 Non-GAAP operating expenses-Corporate (147.6) $ Tender offer and proxy contest costs (16.3) GAAP operating expenses-Corporate (163.9) $ Three Months Ended December 31,
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comparable GAAP measures (in millions, except per share amounts):
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Fiscal 2014 Expectations Net cash flows provided by operating activities 293.0 $ Additions to property, plant and equipment (80.0) Additions to equipment held for rental (13.0) Proceeds from sale of equipment held for rental
200.0 $