Oshkosh Corp (OSK), a manufacturer of specialty vehicles and vehicle bodies, has announced a 29.32 percent decline in profit for the quarter ended Jun. 30, 2014. The company earned $105.10 million or $1.22 a share in the third-quarter compared with $148.70 million or $1.67 a share a year ago. Adjusted earnings per share came in at $1.23, when analysts expected $1.37.
Revenue during the third-quarter declined 12.34 percent to $1932.40 million from $2204.40 million in the last year period.
Gross margin expanded by 46 basis points over the last year period to 17.95 percent. Total expenses as a percentage of revenues increased to 90.98 percent from 89.77 percent in the same period last year. That has resulted in contraction of 121 basis points in operating margins to 9.02 percent.
The company reported operating income of $174.30 million, compared with $225.60 million in the previous year period.
''We are pleased with our overall third quarter results, led by record performance in the access equipment segment and breakthrough improvement in the commercial segment,'' said Charlie Szews, Oshkosh Corporation chief executive officer.
''For fiscal 2014, we are narrowing our estimate range for full year adjusted1 earnings per share to $3.40 to $3.55 as we head into the final quarter of the fiscal year. Looking forward, we continue to believe the outlook for our non-defense markets in 2015 is positive, and we expect MOVE initiatives to continue to contribute to margin expansion in 2015 and beyond,'' added Szews.
Oshkosh has narrowed range for full-year fiscal 2014 adjusted earnings per share to $3.40 to $3.55. The company expects consolidated sales for fiscal 2014 will be approximately $6.70 billion to $6.75 billion.
Cash Flow
Oshkosh Corp has generated cash of $69.40 million from operating activities during the nine month period, down 71.96 percent or $178.10 million when compared with the last year period. The company has generated 1.35 cents of operating cash flow in every sales dollar for the nine month period, down from 4.17 cents in the same period last year.
The company has spent $67.90 million cash to meet investing activities during the nine month period, as against cash outgo of $53.80 million in the last year period. It has made net capital expenditure of $10.40 million during the nine month period, which was higher by 67.74 percent or $4.20 million, from a year ago.
The company's free cash flow accounted for 85.01 percent of operating cash flow for the nine month period, compared with 97.49 percent in the last year period.
The company has spent $208.50 million cash to meet financing activities during the nine month period, as against cash outgo of $148.50 million in the last year period. It has made net repayment of $55 million debt during the nine month period. It has spent net of $102.40 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $525.70 million, down 10.26 percent or $60.10 million from Jun. 30, 2013.
Working Capital
Oshkosh Corp has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1,276 million as at Jun. 30, 2014, up $135.20 million or 11.85 percent from $1140.80 million on Jun. 30, 2013. It registered an increase in current ratio to 1.95 as at Jun. 30, 2014 from 1.83 on Jun. 30, 2013.
Debt Position
Oshkosh Corp has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $900 million, down 5.76 percent or $55 million, from Jun. 30, 2013. The company's total debt was 18.71 percent of total assets as on Jun. 30, 2014, compared with 20.19 percent on Jun. 30, 2013.
Shares of the company declined $3.59 or 6.75 percent to trade at $49.60 on Tuesday (9.56AM).
