Oshkosh Q4 Profit Down; Guides FY14 - Quick Facts

(RTTNews) - Oshkosh Corp. (OSK) reported fiscal 2013 fourth quarter income available to common shareholders was $35.5 million or $0.41 per share, down from $83.4 million or $0.86 per share in the same quarter last year.

Net income from continuing operations was $35.7 million, or $0.40 per share, compared to $83.7 million or $0.91 per share, in the fourth quarter of fiscal 2012.

Results for the fourth quarter of fiscal 2013 were adversely impacted by a $5.5 million after-tax non-cash impairment charge related to an intangible asset in the access equipment segment and after-tax costs of $2.4 million related to the extension of a union contract with defense segment production employees.

Results for the fourth quarter of fiscal 2012 included after-tax non-cash charges of $4.5 million related to the adjustment of stock-based compensation, after-tax charges of $2.2 million associated with the curtailment of pension and other postretirement benefit plans and discrete tax benefits of $31.0 million.

Excluding these items, fiscal 2013 fourth quarter adjusted net income from continuing operations was $43.6 million, or $0.49 per share, compared to $59.5 million, or $0.64 per diluted share, in the fourth quarter of fiscal 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated net sales in the fourth quarter of fiscal 2013 were $1.73 billion, a decrease of 15.8 percent compared to the prior year fourth quarter. Fourteen analysts estimated revenues of $1.75 billion for the quarter. Higher sales in the Company's non-defense segments were more than offset by lower defense segment sales.

The company's Board declared a quarterly cash dividend of $0.15 per share of Common Stock. The dividend will be payable December 2, 2013 to shareholders of record as of November 18, 2013.

The company also announced its fiscal 2014 earnings per share expectations of $3.10 to $3.40 on projected net sales of $6.6 billion to $6.9 billion. Street currently is looking for full-year 2014 earnings of $3.52 per share on annual revenues of $6.73 billion.

The company expects a reduction in the U.S. Department of Defense spending to significantly affect sales in fiscal 2014 driving consolidated sales down from $7.7 billion in fiscal 2013.

For fiscal 2014, the company expects that the decrease in defense segment sales will be partially offset by an increase in sales in the Company's non-defense segments as a result of improved end markets. The Company expects consolidated operating income to be between $455 million and $490 million as a result of lower sales expectations, partially offset by benefits of the Company's MOVE initiatives.