Oshkosh Truck Reports Third Quarter EPS up 23.5%; Raises Full-Year Outlook to $4.30 and Announces Fiscal 2006 EPS Expected Range of $4.80 to $5.00

Oshkosh Truck Corporation (NYSE:OSK), a leadingmanufacturer of specialty trucks and truck bodies, today reported thatfor the quarter ended June 30, 2005, earnings per share increased 23.5percent to $1.05 per share, on sales of $818.9 million and net incomeof $38.7 million. The results included a $4.3 million ($3.0 millionafter-tax), or $0.08 per share, charge for workforce reductions at theCompany's European refuse business. This compares with earnings pershare of $0.85 on sales of $599.8 million and net income of $30.6million for last year's third quarter. These results exceededOshkosh's most recent sales and earnings estimates for the thirdquarter of fiscal 2005 of $794.0 million and $1.03 per share,respectively. Oshkosh also increased its sales and earnings per shareestimates for the full year ending September 30, 2005 to $2.96 billionand $4.30 per share, respectively. All per share amounts included inthis release are reported on a pre-split basis with respect to atwo-for-one split of the Company's common stock as separatelyannounced today.

Sales increased 36.5 percent in the third quarter. Operatingincome increased 28.1 percent to $63.0 million, or 7.7 percent ofsales, compared to $49.2 million, or 8.2 percent of sales, in theprior year's third quarter. Operating results for the quarters endedJune 30, 2005 and 2004 included charges for workforce reductions andlife-to-date adjustments to the margins on the Medium Tactical VehicleReplacement ("MTVR") base contract in each period as described below.

Commenting on the results, Robert G. Bohn, Oshkosh chairman,president and chief executive officer, said, "I am pleased with theexceptional financial performance provided by our defense and fire andemergency businesses, which contributed to record third quarterearnings. Defense parts and truck revenue growth were significantfactors in our quarterly performance, and the outlook for futurebusiness remains positive. And, our fire and emergency businessincreased both revenues and earnings sharply from both acquisitionsand significant organic growth.

"In our commercial business, we are aggressively pursuingimprovement and anticipate this will yield positive results for thissegment beginning in fiscal 2006. Commercial results are beingpositively influenced by "lean" initiatives. In the U.S., this hasyielded record deliveries, improved lead times for our customers, andinventory reductions, each of which are underlying indicators ofperformance improvement. To restore profitability to our Europeanrefuse business, we regret that these initiatives will mean areduction of the workforce in The Netherlands. In addition, steelcosts have stabilized, which should be a factor in recovering margins.

"Oshkosh Truck is focused on growth, as we ramp up defenseremanufacturing, expand our fire apparatus manufacturing capacity, andtarget better results in our commercial segment. In addition, webelieve our markets continue to exhibit the fundamentals necessary forfuture growth, and we today announce our earnings per share estimatedrange for fiscal 2006 of $4.80 to $5.00, up 11.6 percent to 16.3percent from our current full year fiscal 2005 estimates."

Factors affecting third quarter results for the Company's businesssegments included:

Fire and emergency--Fire and emergency segment sales increased56.2 percent, to $222.7 million for the quarter compared to the prioryear. Operating income was up 75.4 percent to $23.1 million, or 10.4percent of sales, compared to prior year operating income of $13.2million, or 9.2 percent of sales. The JerrDan and BAI acquisitionscontributed sales of $42.0 million and operating income of $4.1million during the quarter. Sales and operating income from otherbusinesses in this segment grew 26.7 percent and 44.0 percent,respectively, for the quarter. The higher sales level for thesebusinesses reflected strong order flow for fire apparatus andsubstantially higher airport product sales. Operating income marginsfor the businesses increased due to a substantially improved sales mixof custom pumpers, aerials and airport products.

Defense--Defense segment sales increased 47.1 percent to $281.0million for the quarter compared to the prior year's third quarter dueto a near doubling of parts and service sales as a result of theconflict in Iraq and substantially higher truck sales. Operatingincome in the third quarter was up 35.4 percent, to $46.0 million, or16.4 percent of sales, compared to prior year operating income of$33.9 million, or 17.8 percent of sales. Third quarter earnings werefavorably impacted by the increase in relatively higher-margin partsand service sales and higher truck sales which were offset in part bysubstantially higher new product development spending. Third quarterearnings reflected a $2.1 million life-to-date adjustment to operatingincome to increase margins on the Company's MTVR base contract from9.9 percent to 10.1 percent. The Company had reported a life-to-dateadjustment to MTVR base contract margins during the third quarter offiscal 2004 of $7.1 million to raise its margins to a 7.1 percent rateat that time.

Commercial--Commercial segment sales increased 18.5 percent, to$322.3 million, for the quarter on strong order intake in U.S.markets. Operating income decreased 46.0 percent to $7.2 million, or2.2 percent of sales, compared to $13.4 million, or 4.9 percent ofsales, in the prior year quarter. The CON-E-CO and London acquisitionscontributed sales of $20.0 million and operating income of $1.5million during the quarter. The decrease in operating income marginsfrom the prior year was a result of the $4.3 million (1.3 percent ofsales) charge for workforce reductions at the Company's Europeanrefuse business, continued operating losses in the Company's Europeanrefuse business and price increases for concrete placement anddomestic refuse products that were not high enough to recover highersteel and component costs. Results for the third quarter of fiscal2004 included a $1.8 million (0.7 percent of sales) charge forworkforce reductions at the Company's European refuse business.

Corporate and other--Operating expenses and inter-segment profitelimination increased $2.0 million to $13.3 million, due largely toincreased personnel costs. Net interest expense in the third quarterincreased $0.4 million to $1.4 million, compared to the prior yearquarter. Higher interest costs were largely due to higher averageborrowings as a result of acquisitions.

Total debt decreased during the quarter to $23.6 million at June30, 2005 from $69.4 million at March 31, 2005 and cash increased to$43.1 million at June 30, 2005 from $23.2 million at March 31, 2005due to strong cash flow from operations.

Nine-Month Results

The Company reported that earnings per share increased 39.1percent to $3.20 per share for the first nine months of fiscal 2005 onsales of $2,136.2 million and net income of $117.5 million compared to$2.30 per share for the first nine months of fiscal 2004 on sales of$1,611.2 million and net income of $82.8 million. Results for thefirst nine months of fiscal 2005 included MTVR base contractlife-to-date margin adjustments totaling $24.7 million and a favorableproduct liability settlement totaling $4.2 million that increasedoperating income for the period and a charge for workforce reductionsof $4.3 million. Results for the first nine months of fiscal 2004include MTVR base contract life-to-date margin adjustments totaling$14.2 million that increased operating income for the period and a$1.8 million charge for workforce reductions.

Operating income increased 47.5 percent to $193.2 million, or 9.0percent of sales, in the first nine months of fiscal 2005 compared to$131.0 million, or 8.1 percent of sales, in the first nine months offiscal 2004.

Oshkosh Truck Corporation officials will comment on third quarterearnings and expectations for the remainder of fiscal 2005 and fiscal2006 during a live conference call at 11:00 a.m. Eastern Daylight Timetoday. Viewer-controlled slides for the call will be available on theCompany's website beginning at 9:30 a.m. Eastern Daylight Time thismorning. The call will be available simultaneously via a webcast overthe Internet as a service to investors. It will be listen-only formatfor on-line listeners. To access the webcast, investors should go towww.oshkoshtruckcorporation.com at least 15 minutes prior to the eventand follow instructions for listening to the broadcast. An audioreplay of such conference call and related question and answer sessionwill be available for at least twelve months at this website.

Oshkosh Truck Corporation is a leading designer, manufacturer andmarketer of a broad range of specialty commercial, fire and emergencyand military trucks and truck bodies under the Oshkosh(R),McNeilus(R), Pierce(R), Medtec(TM), CON-E-CO(R), London(R), Geesinkand Norba brand names. Oshkosh's products are valued worldwide by fireand emergency units, defense forces, municipal and airport supportservices, and concrete placement and refuse businesses where highquality, superior performance, rugged reliability and long-term valueare paramount.

Forward-Looking Statements

This press release contains statements that the Company believesare "forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. All statements other thanstatements of historical fact, including statements regarding theCompany's future financial position, business strategy, targets,projected sales, costs, earnings, capital spending and debt levels,and plans and objectives of management for future operations, areforward-looking statements. When used in this press release, wordssuch as the Company "expects," "intends," "estimates," "anticipates,"or "believes" and similar expressions are generally intended toidentify forward-looking statements. These forward-looking statementsare not guarantees of future performance and are subject to risks,uncertainties, assumptions and other factors, some of which are beyondthe Company's control, that could cause actual results to differmaterially from those expressed or implied by such forward-lookingstatements. These factors include, without limitation, the Company'sability to turnaround its Geesink Norba Group and McNeilus businesses,the cyclical nature of the Company's commercial and fire and emergencymarkets, risks related to reductions in government expenditures, theuncertainty of government contracts, the challenges of identifyingacquisition candidates and integrating acquired businesses, rapidlyrising steel and component costs and the Company's ability to avoidsuch cost increases based on its supply contracts or recover suchrising costs with increases in selling prices of its products, thesuccess of the launch of the Revolution(R) composite concrete mixerdrum, and risks associated with international operations and sales,including foreign currency fluctuations. In addition, the Company'sexpectations for fiscal 2005 and 2006 are based in part on certainassumptions made by the Company, including, without limitation, thoserelating to the Company's ability to turnaround the business of theGeesink Norba Group sufficiently to support its current valuationresulting in no non-cash impairment charge for Geesink Norba Groupgoodwill; the Company's ability to increase its operating incomemargins at McNeilus; the ability of the Company to recover steel andcomponent cost increases from its customers; increasing concreteplacement activity; the performance of the U.S. and European economiesgenerally; when the Company will receive sales orders and payments;achieving cost reductions; production and margin levels under theFamily of Heavy Tactical Vehicles contract, the IndefiniteDemand/Indefinite Quantity contract, the MTVR follow-on contract andfor international defense trucks; the level of U.S. Department ofDefense procurement of replacement parts, services and remanufacturingof trucks; targets for Geesink Norba Group sales and operating losses;capital expenditures of municipalities, airports and large wastehaulers; the availability of commercial chassis and certain chassiscomponents; spending on bid and proposal activities and new productdevelopment; interest and personnel costs; the ability to integrateacquired businesses; and that the Company does not complete anyacquisitions. Additional information concerning these and otherfactors is contained in the Company's filings with the Securities andExchange Commission, including the Form 8-K filed today.
OSHKOSH TRUCK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Three Months Ended Nine Months Ended
June 30, June 30,
-------------------------------------------
2005 2004 2005 2004
-------------------------------------------
(In thousands, except per share amounts)

Net sales $818,912 $599,824 $2,136,184 $1,611,231
Cost of sales 695,068 500,576 1,776,856 1,345,798
-------------------------------------------
Gross income 123,844 99,248 359,328 265,433

Operating expenses:
Selling, general and
administrative 58,827 48,417 160,332 129,457
Amortization of
purchased intangibles 2,046 1,666 5,768 4,998
-------------------------------------------
Total operating expenses 60,873 50,083 166,100 134,455
-------------------------------------------

Operating income 62,971 49,165 193,228 130,978

Other income (expense):
Interest expense (1,880) (1,459) (6,370) (4,008)
Interest income 481 411 1,499 992
Miscellaneous, net (224) 119 (837) 679
-------------------------------------------
(1,623) (929) (5,708) (2,337)
-------------------------------------------

Income before provision
for income taxes, equity in
earnings of unconsolidated
affiliates and
minority interest 61,348 48,236 187,520 128,641

Provision for income taxes 23,493 18,215 72,195 47,563
-------------------------------------------

Income before equity in
earnings of unconsolidated
affiliates and
minority interest 37,855 30,021 115,325 81,078

Equity in earnings of
unconsolidated affiliates,
net of income taxes 977 602 2,317 1,716

Minority interest, net of
income taxes (143) - (189) -
-------------------------------------------

Net income $ 38,689 $ 30,623 $ 117,453 $ 82,794
===========================================

Earnings per share
Basic $ 1.07 $ 0.87 $ 3.27 $ 2.37
Diluted $ 1.05 $ 0.85 $ 3.20 $ 2.30

Basic weighted average
shares outstanding 36,010 34,299 35,374 34,154
Effect of dilutive
securities
Class A Common Stock 283 811 631 813
Stock options and incentive
compensation awards 649 945 730 994
-------------------------------------------
Diluted weighted average
shares outstanding 36,942 36,055 36,735 35,961
===========================================


OSHKOSH TRUCK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, September 30,
2005 2004
------------- -------------
(Unaudited)
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 43,062 $ 30,081
Receivables, net 290,437 252,253
Inventories 546,466 368,067
Deferred income taxes 37,912 41,033
Other current assets 25,118 19,273
------------- -------------
Total current assets 942,995 710,707
Investment in unconsolidated affiliates 20,065 21,187
Property, plant and equipment 342,897 316,538
Less accumulated depreciation (162,586) (147,962)
------------- -------------
Net property, plant and equipment 180,311 168,576
Goodwill, net 398,268 385,063
Purchased intangible assets, net 130,291 140,506
Other long-term assets 36,593 26,375
------------- -------------
Total assets $ 1,708,523 $ 1,452,414
============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Revolving credit facility and current
maturities of long-term debt $ 20,938 $ 72,739
Accounts payable 213,079 200,290
Customer advances 306,091 209,656
Floor plan notes payable 37,204 25,841
Payroll-related obligations 47,363 43,978
Income taxes 12,033 17,575
Accrued warranty 38,825 35,760
Other current liabilities 104,446 73,842
------------- -------------
Total current liabilities 779,979 679,681
Long-term debt 2,652 3,209
Deferred income taxes 64,829 66,543
Other long-term liabilities 66,902 64,259
Minority interest 2,760 2,629
Commitments and contingencies
Shareholders' equity 791,401 636,093
------------- -------------
Total liabilities and shareholders' equity $ 1,708,523 $ 1,452,414
============= =============


OSHKOSH TRUCK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Nine Months Ended
June 30,
---------------------
2005 2004
---------- ---------
(In thousands)
Operating activities:
Net income $ 117,453 $ 82,794
Non-cash and other adjustments 26,446 24,304
Changes in operating assets and liabilities (42,206) (27,382)
---------- ---------
Net cash provided by operating activities 101,693 79,716

Investing activities:
Acquisition of businesses, net of cash acquired (31,302) -
Additions to property, plant and equipment (21,716) (19,203)
Proceeds from sale of assets 194 108
Decrease (increase) in other long-term assets 4,986 (16,339)
---------- ---------
Net cash used by investing activities (47,838) (35,434)

Financing activities:
Net repayments under revolving credit facility (52,263) (37,000)
Proceeds from exercise of stock options 24,149 4,471
Proceeds from issuance of long-term debt - 965
Repayment of long-term debt (603) (1,872)
Dividends paid (11,073) (6,032)
---------- ---------
Net cash used by financing activities (39,790) (39,468)

Effect of exchange rate changes on cash (1,084) 1,217
---------- ---------

Increase in cash and cash equivalents 12,981 6,031

Cash and cash equivalents at beginning of period 30,081 25,276
---------- ---------

Cash and cash equivalents at end of period $ 43,062 $ 31,307
========== =========

Supplementary disclosure:
Depreciation and amortization $ 25,707 $ 20,073


OSHKOSH TRUCK CORPORATION
SEGMENT INFORMATION
(Unaudited)

Three Months Ended Nine Months Ended
June 30, June 30,
--------------------- -----------------------
2005 2004 2005 2004
----------- --------- ----------- -----------
(In thousands)
Net sales to unaffiliated
customers:
Fire and emergency $ 222,670 $ 142,572 $ 630,051 $ 401,072
Defense 280,985 191,051 706,095 549,575
Commercial 322,346 272,019 819,186 672,817
Intersegment
eliminations (7,089) (5,818) (19,148) (12,233)
----------- --------- ----------- -----------
Consolidated $ 818,912 $ 599,824 $ 2,136,184 $ 1,611,231
=========== ========= =========== ===========

Operating income (expense):
Fire and emergency $ 23,132 $ 13,186 $ 60,580 $ 36,003
Defense (1) 45,955 33,946 147,037 94,145
Commercial 7,212 13,359 19,295 29,985
Corporate and other (13,328) (11,326) (33,684) (29,155)
----------- --------- ----------- -----------
Consolidated $ 62,971 $ 49,165 $ 193,228 $ 130,978
=========== ========= =========== ===========

Period-end backlog:
Fire and emergency $ 520,982 $ 457,139
Defense 1,163,137 876,253
Commercial 246,010 219,302
----------- -----------
Consolidated $ 1,930,129 $ 1,552,694
=========== ===========

(1) Includes the following cumulative life-to-date adjustments to
operating income due to an increase in margins on the Company's
MTVR contract.

Three Months Nine Months
Ended Ended
June 30, June 30,
------------------------------
2005 2004 2005 2004
------------------------------
(In thousands, except percentages)

Increase in operating income $ 2,100 $ 7,100 $ 24,700 $14,200
Increase in margin percentage 0.2% 0.8% 2.5% 1.6%
Margin percentage at period-end 10.1% 7.1%