Oshkosh Corporation Third Quarter Fiscal 2013 July 30, 2013 - - PowerPoint PPT Presentation
Oshkosh Corporation Third Quarter Fiscal 2013 July 30, 2013 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.
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
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
markets, especially in the current environment where there are conflicting signs regarding the global economic outlook and the ability of the U.S. government to resolve budgetary and debt issues; the expected level and timing of the DoD procurement of products 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. Joint Light Tactical Vehicle production contract award; the Company’s ability to increase prices to raise margins or offset higher input costs; increasing commodity and other raw material costs, particularly in a sustained economic recovery; risks 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 weakness, 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 other factors is contained in the Company’s filings with the Securities and Exchange Commission, including the Form 8-K filed today. All forward-looking statements speak only as of the date of this presentation. The Company assumes no obligation, 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.
2 July 30, 2013 OSK Third Quarter 2013 Earnings Call
– Nearly double Q3 FY12 – Access equipment and defense segments led the way
– $3.60 to $3.70
3 OSK Third Quarter 2013 Earnings Call July 30, 2013
Net Sales
(millions)
EPS
$2,204 $2,160 $1.67 $0.84 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $0 $500 $1,000 $1,500 $2,000 $2,500 FY13 FY12 Net Sales EPS
* Continuing operations only. * * FY13 expectations exclude certain non-GAAP adjustments (see Appendix).
– Kingdom of Saudi Arabia follow-on
– Tremendous teamwork across the company
4 OSK Third Quarter 2013 Earnings Call July 30, 2013
OSK Third Quarter 2013 Earnings Call 5 July 30, 2013
OSK Third Quarter 2013 Earnings Call 6 July 30, 2013
OSK Third Quarter 2013 Earnings Call 7 July 30, 2013
Higher access equipment and commercial segment deliveries Lower volume in defense and fire & emergency segments
Strong performance by access equipment and defense segments Product mix, including international defense sales Price realization Product and process cost reductions
(Dollars in millions, except per share amounts)
OSK Third Quarter 2013 Earnings Call 8 July 30, 2013
* Continuing operations only. ** Includes $0.07 per share benefit as a result of lower average shares outstanding.
9
(higher share-based compensation and IT investments vs. FY12)
Sales (billions) ~$3.1 ~$3.1 Nearly $0.8 $0.72 - $0.75 Operating Income Margin 12.0%-12.25% ~7.5% 2.0%-2.5% 4.5%-5.0%
year due to seasonality and defense sales decline.
* FY13 expectations reflect certain non-GAAP adjustments (see Appendix).
July 30, 2013 OSK Third Quarter 2013 Earnings Call
** Excludes impact of any additional share repurchases in Q4.
Patrick N. Davidson Vice President, Investor Relations (920) 966-5939 pdavidson@oshkoshcorp.com Jeff D. Watt Director, Investor Relations (920) 233-9406 jwatt@oshkoshcorp.com
(Dollars in millions)
Higher volume in North America Price realization Higher aftermarket volume Lower volume in Australia
Price realization Product and process cost reduction Product mix
prior year to $621 million
Mostly due to lower military backlog
July 30, 2013 OSK Third Quarter 2013 Earnings Call 11
Lower U.S. DoD volume International truck shipments
Higher international sales mix Finalization of UCA pricing Operational efficiencies
(Dollars in millions)
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(Dollars in millions)
Lower unit volumes
Lower absorption Price realization
July 30, 2013 OSK Third Quarter 2013 Earnings Call 13
* Continuing operations only.
+ Higher concrete mixer sales + Higher content units Lower RCV sales
Restructuring related costs
July 30, 2013 14 OSK Third Quarter 2013 Earnings Call
(Dollars in millions)
July 30, 2013 15 OSK Third Quarter 2013 Earnings Call
ARFF Aircraft Rescue and Firefighting M-ATV MRAP All-Terrain Vehicle AWP Aerial Work Platform MECV Modernized Expanded Capability Vehicle CapEx Capital Expenditures MRAP Mine Resistant Ambush Protected CNG Compressed Natural Gas MSVS Medium Support Vehicle System (Canada) DoD Department of Defense NPD New Product Development EAME Europe, Africa & Middle East NOL Net Operating Loss 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 R&D Research & Development FMTV Family of Medium Tactical Vehicles RCV Refuse Collection Vehicle HEMTT Heavy Expanded Mobility Tactical Truck RFP Request for Proposal HET Heavy Equipment Transporter ROW Rest of World HMMWV High Mobility Multi-Purpose Wheeled Vehicle SMP Standard Military Pattern (Canadian MSVS) IT Information Technology TACOM Tank-automotive and Armaments Command JLTV Joint Light Tactical Vehicle TDP Technical Data Package JPO Joint Program Office TFFT Tactical Fire Fighting Truck JROC Joint Requirements Oversight Council TPV Tactical Protector Vehicle JUONS Joint Urgent Operational Needs Statement TWV Tactical Wheeled Vehicle L-ATV Light Combat Tactical All-Terrain Vehicle UCA Undefinitized Contract Action LVSR Logistic Vehicle System Replacement UIK Underbody Improvement Kit (for M-ATV)
July 30, 2013 16 OSK Third Quarter 2013 Earnings Call
most directly comparable GAAP measures (in millions, except per share amounts):
Fiscal 2013 Expectations Corporate Non-GAAP operating expenses (145.0) $ Tender offer and proxy contest costs (16.3) GAAP operating expenses (161.3) $ Low High Consolidated Non-GAAP operating income 515.0 $ 525.0 $ Tender offer and proxy contest costs (16.3) (16.3) GAAP operating income 498.7 $ 508.7 $ Non-GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.60 $ 3.70 $ Tender offer and proxy contest costs, net of tax (0.11) (0.11) GAAP earnings per share attributable to Oshkosh Corporation from continuing operations-diluted 3.49 $ 3.59 $ Net cash flows provided by operating activities 335.0 $ 360.0 $ Additions to property, plant and equipment (45.0) (45.0) Additions to equipment held for rental (19.0) (19.0) Proceeds from sale of equipment held for rental 4.0 4.0 Free cash flow 275.0 $ 300.0 $
Fiscal 2013 Expectations