Oshkosh Truck Reports Third Quarter EPS up 38.5 Percent to $0.72

Oshkosh Truck Corporation (NYSE:OSK), a leading manufacturer ofspecialty trucks and truck bodies, today reported that, for thequarter ended June 30, 2006, earnings per share increased 38.5 percentto $0.72 on sales of $887.9 million and net income of $53.4 million.This compares with earnings per share of $0.52 on sales of $818.9million and net income of $38.7 million for the prior year's thirdquarter. These results exceeded Oshkosh's most recent earnings pershare estimate range for the third quarter of fiscal 2006 of $0.53 -$0.57 per share. Based upon the results of the third quarter, Oshkoshincreased its earnings per share estimate range for the full yearending September 30, 2006 to $2.70 - $2.75 per share.

Sales increased 8.4 percent in the third quarter of fiscal 2006 ascompared to the prior year's third quarter. Operating income increased31.2 percent to $82.6 million, or 9.3 percent of sales, compared to$63.0 million, or 7.7 percent of sales, in the prior year's thirdquarter. All segments contributed to the sales and earnings growthduring the third quarter with the commercial segment drivingapproximately two-thirds of the increase in consolidated operatingincome. Third quarter operating income rose 252.0 percent in thecommercial segment compared to the prior year's third quarter.

Commenting on the results, Robert G. Bohn, chairman, president andchief executive officer, said, "Oshkosh's commercial segment was thedriving force in delivering exceptional earnings per share growth thisquarter. The team's efforts over the last year to raise prices,increase production capacity and drive lean production processesacross the segment led the way to a 500 basis point increase insegment margins in the third quarter compared to prior year levels."

Bohn continued, "Oshkosh's defense segment contributed anothersolid quarter, and the fire and emergency segment experienced strongresults led by a superior performance in our Pierce Manufacturing fireapparatus business and improved airport product sales. Exceptionalresults year-to-date, along with solid visibility into the nextquarter, provided the basis for us to raise our earnings per shareestimate range to $2.70 - $2.75 for fiscal 2006.

"We're very pleased to have announced during the last 90 days thatwe have entered into agreements to purchase two additional companies,AK Specialty Vehicles and Iowa Mold Tooling. Both companies willcontinue our diversification within specialty body markets and moveOshkosh Truck into several new product lines, including broadcasting,mobile medical, specialized cranes and service vehicles. We believeeach company also provides near-term growth prospects and anopportunity for sharing technologies throughout the corporation. Weexpect these acquisitions to contribute annual sales of approximately$245 million and $0.10 per share to fiscal 2007 earnings," statedBohn.

Bohn concluded, "We have initiated our earnings per share estimaterange for fiscal 2007 at $3.05 - $3.15. This estimate range reflectsour confidence in our ability to deliver earnings improvement despitesoftening market demand for vocational trucks in 2007 as a result ofthe diesel engine emissions standards changes effective January 1,2007. It also fully considers the contributions of our latestacquisitions, along with prospects for organic growth. As we move intofiscal 2007, we are actively pursuing more acquisitions, new businessdevelopment opportunities and operational initiatives to improve onthese estimates."

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

Fire and emergency--Fire and emergency segment sales increased14.7 percent to $255.3 million for the quarter compared to the thirdquarter of last year. Operating income was up 28.7 percent to $29.8million, or 11.7 percent of sales, compared to prior year quarteroperating income of $23.1 million, or 10.4 percent of sales. Theincrease in sales for the fire and emergency segment included $13.6million in sales that were delayed from the previous quarter due totwo separate supplier component issues. Operating income margins forthe fire and emergency segment improved due to an improved productmix, including increased airport product sales, and benefits from costreduction initiatives, especially at Pierce.

Defense--Defense segment sales increased 3.7 percent to $291.4million for the quarter compared to the prior year's third quarter. Anincrease in sales of remanufactured trucks for the U.S. Department ofDefense and of new trucks for international customers offset lowerparts and service and Medium Tactical Vehicle Replacement ("MTVR")truck sales. The MTVR base contract was concluded during the thirdquarter of fiscal 2005.

Operating income in the third quarter was up 6.7 percent to $49.0million, or 16.8 percent of sales, compared to prior year operatingincome of $46.0 million, or 16.4 percent of sales. The increase inoperating income for the third quarter was primarily due to theincrease in sales and was partially offset by higher bid and proposalspending. Operating income margins in the third quarter of fiscal 2005benefited from a $2.1 million ($0.02 per share) adjustment to MTVRbase contract margins, which was recorded under the percentage ofcompletion method of accounting.

Commercial--Commercial segment sales increased 8.8 percent to$350.6 million in the third quarter compared to the prior yearquarter. Operating income increased 252.0 percent to $25.4 million, or7.2 percent of sales, compared to $7.2 million, or 2.2 percent ofsales, in the prior year quarter. The increase in sales for thesegment was largely due to strong demand at the Company's NorthAmerican businesses in advance of diesel engine emissions standardschanges effective January 1, 2007 and higher unit sales at theCompany's European refuse business, offset in part by a lower mix ofpackage sales involving both a truck chassis and truck body. Thesignificant increase in operating income margins in the third quarterof fiscal 2006 resulted from both higher price realization and costreduction in North America and continued profitable operations at theCompany's European refuse business compared to an operating loss of$5.1 million in Europe in the third quarter of fiscal 2005. The prioryear's third quarter results included a $4.3 million ($0.04 per share)charge for workforce reductions at the Company's European refusebusiness. The improvement in Europe resulted from increased salesvolume, cost reduction activities and restructuring activities thatbegan in fiscal 2005.

Corporate and other--Operating expenses and inter-segment profitelimination increased $8.2 million to $21.5 million. The increase inthe third quarter was largely due to a $5.9 million increase inacquisition investigation and related costs, an additional $1.1million related to the expensing of stock options due to the adoptionof Statement of Financial Accounting Standards No. 123(R), "ShareBased Payment," and $0.8 million related to the Company's new officein China. Interest income net of interest expense for the quarter was$0.3 million as compared to $1.4 million of net expense for the prioryear quarter. Lower interest costs were largely due to the repaymentof acquisition-related debt and higher interest income resulting fromthe investment of higher average cash balances during the quarter.

Cash and cash equivalents, net of debt, increased during thequarter to $193.1 million at June 30, 2006 from $74.6 million at March31, 2006.

Nine-Month Results

The Company reported that earnings per share increased 31.3percent to $2.10 per share for the first nine months of fiscal 2006 onsales of $2.52 billion and net income of $156.3 million compared to$1.60 per share for the first nine months of fiscal 2005 on sales of$2.14 billion and net income of $117.5 million. Results for the firstnine months of fiscal 2005 included MTVR base contract life-to-datemargin adjustments totaling $24.7 million.

Operating income increased 29.0 percent to $249.3 million, or 9.9percent of sales, in the first nine months of fiscal 2006 compared to$193.2 million, or 9.0 percent of sales, in the first nine months offiscal 2005.

Dividend Announcement

Oshkosh Truck Corporation's Board of Directors declared aquarterly dividend of $0.10 per share of Common Stock. The dividend,unchanged from the immediately preceding quarter, will be payableAugust 23, 2006 to shareholders of record as of August 15, 2006.

The Company will comment on third quarter earnings andexpectations for the remainder of fiscal 2006 and for fiscal 2007during a live conference call at 9:00 a.m. Eastern Daylight Time thismorning. Viewer-controlled slides for the call will be available onthe Company's website beginning at 8:30 a.m. Eastern Daylight Timethis morning. The call will be available simultaneously via a webcastover the Internet as a service to investors. It will be listen-onlyformat for on-line listeners. To access the webcast, investors shouldgo to www.oshkoshtruckcorporation.com at least 15 minutes prior to theevent and follow instructions for listening to the broadcast. An audioreplay of such conference call and related question and answer sessionwill be available for 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. Oshkosh's products are valuedworldwide by fire and emergency units, defense forces, municipal andairport support services, and concrete placement and refuse businesseswhere high quality, superior performance, rugged reliability andlong-term value are paramount.

Forward-Looking Statements

This press release contains statements that the Company believesto be "forward-looking statements" within the meaning of the PrivateSecurities Litigation Reform Act of 1995. All statements other thanstatements of historical fact, including, without limitation,statements regarding the Company's future financial position, businessstrategy, targets, projected sales, costs, earnings, capitalexpenditures, debt levels and cash flows, and plans and objectives ofmanagement for future operations, are forward-looking statements. Whenused in this press release, words such as "may," "will," "expect,""intend," "estimate," "anticipate," "believe," "should," "project" or"plan" or the negative thereof or variations thereon or similarterminology are generally intended to identify forward-lookingstatements. These forward-looking statements are not guarantees offuture performance and are subject to risks, uncertainties,assumptions and other factors, some of which are beyond the Company'scontrol, that could cause actual results to differ materially fromthose expressed or implied by such forward-looking statements. Thesefactors include the Company's ability to continue the turnaround ofits Geesink Norba Group business, the cyclical nature of the Company'scommercial and fire and emergency markets, risks related to reductionsin government expenditures, the uncertainty of government contracts,the availability of defense truck carcasses for remanufacturing, thechallenges of identifying acquisition candidates and integratingacquired businesses, risks associated with the implementation of anenterprise resource planning system at McNeilus(R); the success of theRevolution(R) composite concrete mixer drum, the availability ofcommercial chassis and certain chassis components including engines,and risks associated with international operations and sales,including foreign currency fluctuations. In addition, the Company'sexpectations for fiscal 2006 and fiscal 2007 are based in part oncertain assumptions made by the Company, including without limitationthose relating to the Company's ability to continue the turnaround ofthe business of the Geesink Norba Group sufficiently to support itscurrent valuation resulting in no non-cash impairment charge forGeesink Norba Group goodwill; the Company's ability to sustain flatoperating income in the commercial segment and to raise operatingincome in its fire and emergency segment in fiscal 2007 despiteanticipated lower industry demand resulting from changes to dieselengine emissions standards effective January 1, 2007; the Company'sestimates for the level of concrete placement activity, housing startsand mortgage rates; the performance of the U.S. and European economiesgenerally; the Company's expectations as to timing of receipt of salesorders and payments and execution and funding of defense contracts;the Company's ability to achieve cost reductions and operatingefficiencies, in particular at McNeilus and the Geesink Norba Group;the anticipated level of production and margins associated with theFamily of Heavy Tactical Vehicles contract, the IndefiniteDemand/Indefinite Quantity truck remanufacturing contract, the MTVRfollow-on contract and international defense truck contracts; theexpected level of U.S. Department of Defense procurement ofreplacement parts and services and funding thereof; the Company'sestimates for capital expenditures of municipalities for fire andemergency and refuse products, of airports for aircraft rescue andsnow removal products and of large commercial waste haulers generallyand with the Company; federal funding levels for U.S. Department ofHomeland Security and spending by governmental entities on homelandsecurity apparatus; the availability of chassis components includingengines and commercial chassis generally; the Company's plannedspending on product development and bid and proposal activities withrespect to defense truck procurement competitions and the outcome ofsuch competitions; the expected level of commercial "package" body andpurchased chassis sales compared to "body only" sales; the Company'sability to integrate acquired businesses and achieve expectedsynergies; the Company's ability to close the Iowa Mold Toolingacquisition; the Company's estimates of the impact of changing fuelprices and credit availability on capital spending of towingoperators; anticipated levels of capital expenditures; the Company'sestimates for costs relating to litigation, acquisition investigation,product warranty, insurance, stock options and restricted stockawards, personnel and raw materials; the Company's ability tonegotiate expiring union contracts on a satisfactory basis; theCompany's estimates for debt levels, interest rates, working capitalneeds and effective tax rates; and that the Company does not completeany further acquisitions other than AK Specialty Vehicles and IowaMold Tooling. 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,
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
(In thousands, except per share amounts)

Net sales $ 887,919 $ 818,912 $2,523,035 $2,136,184
Cost of sales 732,629 695,068 2,069,457 1,776,856
----------- ----------- ----------- -----------
Gross income 155,290 123,844 453,578 359,328

Operating expenses:
Selling, general and
administrative 70,841 58,827 198,617 160,332
Amortization of
purchased
intangibles 1,832 2,046 5,617 5,768
----------- ----------- ----------- -----------
Total operating
expenses 72,673 60,873 204,234 166,100
----------- ----------- ----------- -----------

Operating income 82,617 62,971 249,344 193,228

Other income
(expense):
Interest expense (1,293) (1,880) (4,212) (6,370)
Interest income 1,625 481 4,457 1,499
Miscellaneous, net (301) (224) (709) (837)
----------- ----------- ----------- -----------
31 (1,623) (464) (5,708)
----------- ----------- ----------- -----------

Income before
provision for income
taxes, equity in
earnings of
unconsolidated
affiliates and
minority interest 82,648 61,348 248,880 187,520

Provision for income
taxes 30,058 23,493 94,061 72,195
----------- ----------- ----------- -----------

Income before equity
in earnings of
unconsolidated
affiliates and
minority interest 52,590 37,855 154,819 115,325

Equity in earnings of
unconsolidated
affiliates, net of
income taxes 880 977 1,878 2,317

Minority interest, net
of income taxes (56) (143) (378) (189)
----------- ----------- ----------- -----------

Net income $ 53,414 $ 38,689 $ 156,319 $ 117,453
=========== =========== =========== ===========

Earnings per share:
Basic $ 0.73 $ 0.53 $ 2.14 $ 1.63
Diluted $ 0.72 $ 0.52 $ 2.10 $ 1.60

Basic weighted average
shares outstanding 73,181 72,019 73,134 70,747
Effect of dilutive
securities:
Class A Common Stock - 566 - 1,263
Stock options and
incentive
compensation awards 1,310 1,298 1,229 1,460
----------- ----------- ----------- -----------
Diluted weighted
average shares
outstanding 74,491 73,883 74,363 73,470
=========== =========== =========== ===========


OSHKOSH TRUCK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS

June 30, September 30,
2006 2005
------------- -------------
(Unaudited)
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 221,703 $ 127,507
Receivables, net 287,718 280,247
Inventories, net 543,569 489,997
Deferred income taxes 41,291 36,618
Other current assets 20,433 20,015
------------- -------------
Total current assets 1,114,714 954,384
Investments in unconsolidated affiliates 18,569 20,280
Property, plant and equipment 390,588 355,341
Less accumulated depreciation (177,217) (162,315)
------------- -------------
Property, plant and equipment, net 213,371 193,026
Goodwill, net 405,523 399,875
Purchased intangible assets, net 123,439 128,525
Other long-term assets 26,499 22,213
------------- -------------
Total assets $ 1,902,115 $ 1,718,303
============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 223,703 $ 226,768
Revolving credit facility and current
maturities of long-term debt 26,501 21,521
Customer advances 300,671 303,090
Floor plan notes payable 30,773 21,332
Payroll-related obligations 52,475 47,460
Income taxes payable 18,438 11,571
Accrued warranty 48,380 39,546
Deferred revenue 23,102 25,457
Other current liabilities 76,419 78,794
------------- -------------
Total current liabilities 800,462 775,539
Long-term debt 2,083 2,589
Deferred income taxes 51,030 55,443
Other long-term liabilities 63,592 62,917
Commitments and contingencies
Minority interest 3,671 3,145
Shareholders' equity 981,277 818,670
------------- -------------
Total liabilities and shareholders' equity $ 1,902,115 $ 1,718,303
============= =============


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

Nine Months Ended
June 30,
---------------------------
2006 2005
------------- -------------
(In thousands)
Operating activities:
Net income $ 156,319 $ 117,453
Non-cash and other adjustments 24,005 26,446
Changes in operating assets and
liabilities (34,674) (42,206)
------------- -------------
Net cash provided by operating
activities 145,650 101,693

Investing activities:
Acquisition of businesses, net of cash
acquired - (31,302)
Additions to property, plant and
equipment (40,482) (21,716)
Proceeds from sale of assets 365 194
(Increase) decrease in other long-term
assets (996) 4,986
------------- -------------
Net cash used by investing activities (41,113) (47,838)

Financing activities:
Net borrowings (repayments) under
revolving credit facilities 3,750 (52,263)
Repayment of long-term debt (471) (603)
Proceeds from exercise of stock options 2,565 24,149
Excess tax benefits from stock-based
compensation 2,700 -
Dividends paid (19,682) (11,073)
------------- -------------
Net cash used by financing activities (11,138) (39,790)

Effect of exchange rate changes on cash 797 (1,084)
------------- -------------

Increase in cash and cash equivalents 94,196 12,981

Cash and cash equivalents at beginning of
period 127,507 30,081
------------- -------------

Cash and cash equivalents at end of period $ 221,703 $ 43,062
============= =============

Supplementary disclosure:
Depreciation and amortization $ 26,664 $ 23,490


OSHKOSH TRUCK CORPORATION
SEGMENT INFORMATION
(Unaudited)

Three Months Ended Nine Months Ended
June 30, June 30,
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
(In thousands)
Net sales to
unaffiliated
customers:
Fire and emergency $ 255,314 $ 222,670 $ 693,050 $ 630,051
Defense 291,366 280,985 988,664 706,095
Commercial 350,561 322,346 871,231 819,186
Intersegment
eliminations (9,322) (7,089) (29,910) (19,148)
----------- ----------- ----------- -----------
Consolidated $ 887,919 $ 818,912 $2,523,035 $2,136,184
=========== =========== =========== ===========


Operating income
(expense):
Fire and emergency $ 29,760 $ 23,132 $ 68,562 $ 60,580
Defense(1) 49,013 45,955 187,430 147,037
Commercial 25,388 7,212 49,024 19,295
Corporate and other (21,544) (13,328) (55,672) (33,684)
----------- ----------- ----------- -----------
Consolidated $ 82,617 $ 62,971 $ 249,344 $ 193,228
=========== =========== =========== ===========


Period-end backlog:
Fire and emergency $ 554,750 $ 520,982
Defense 1,054,696 1,163,137
Commercial 418,032 246,010
----------- -----------
Consolidated $2,027,478 $1,930,129
=========== ===========

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


Three Months Ended Nine Months Ended
June 30, June 30,
----------------------- -----------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
(In thousands, except percentages)
Increase in operating
income $ - $ 2,100 $ - $ 24,700
Increase in margin
percentage - 0.2% - 2.5%
Margin percentage at
period-end - 10.1%