Oshkosh Corporation (OSK) has reported a 22.27 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $61.50 million, or $0.82 a share in the quarter, compared with $50.30 million, or $0.64 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $79 million, or $1.05 a share compared with $52.70 million or $0.67 a share, a year ago. Revenue during the quarter grew 11.22 percent to $1,755.40 million from $1,578.30 million in the previous year period. Gross margin for the quarter expanded 122 basis points over the previous year period to 17.04 percent. Total expenses were 94.56 percent of quarterly revenues, up from 94.51 percent for the same period last year. That has resulted in a contraction of 5 basis points in operating margin to 5.44 percent.
Operating income for the quarter was $95.50 million, compared with $86.60 million in the previous year period.
However, the adjusted operating income for the quarter stood at $123.30 million compared to $89.50 million in the prior year period. At the same time, adjusted operating margin improved 135 basis points in the quarter to 7.02 percent from 5.67 percent in the last year period.
"We finished the year on a high note with fiscal fourth quarter adjusted(1) earnings per share of $1.05, which exceeded both our most recent estimates for the quarter and our results from the fourth quarter of fiscal 2015," said Wilson Jones, president and chief executive officer of Oshkosh Corporation. "Higher than expected sales in the access equipment segment as well as lower bid & proposal costs due to the timing of the FMTV request for proposal and favorable LIFO, warranty and benefits costs in the defense segment drove the higher than expected results for the quarter. Our improved year-over-year performance compared to the fourth quarter of fiscal 2015 was led primarily by significantly stronger results in our defense segment, including the sale of 325 international M-ATVs."
For fiscal year 2017, Oshkosh Corporation forecasts revenue to be in the range of $6,500 million to $6,700 million. The company forecasts operating income to be in the range of $390 million to $430 million. It company expects diluted earnings per share to be in the range of $3 to $3.40.
Operating cash flow improves significantly
Oshkosh Corporation has generated cash of $577.70 million from operating activities during the year, up 600.24 percent or $495.20 million, when compared with the last year. The company has spent $89.20 million cash to meet investing activities during the year as against cash outgo of $140.10 million in the last year. It has incurred net capital expenditure of $87.10 million on net basis during the year, down 33.61 percent or $44.10 million from year ago.
The company has spent $215.80 million cash to carry out financing activities during the year as against cash outgo of $212.90 million in the last year period.
Cash and cash equivalents stood at $321.90 million as on Sep. 30, 2016, up 650.35 percent or $279 million from $42.90 million on Sep. 30, 2015.
Debt comes down
Oshkosh Corporation has recorded a decline in total debt over the last one year. It stood at $846.20 million as on Sep. 30, 2016, down 8.79 percent or $81.60 million from $927.80 million on Sep. 30, 2015. Total debt was 18.75 percent of total assets as on Sep. 30, 2016, compared with 20.11 percent on Sep. 30, 2015. Debt to equity ratio was at 0.43 as on Sep. 30, 2016, down from 0.49 as on Sep. 30, 2015.
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