Oshkosh Corporation (holding Company) · NYSE:OSK
Oshkosh Corporation (holding Company) — Q2 2020 Earnings Presentation
18 slides from Oshkosh Corporation (holding Company)'s earnings presentation, Apr 29, 2020
Slide 1: Oshkosh Corporation Second Quarter Fiscal 2020
Oshkosh Corporation Second Quarter Fiscal 2020 April 29, 2020 WILSON JONES – PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN PFEIFER - EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MIKE PACK – EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER PATRICK DAVIDSON – SENIOR VICE PRESIDENT, INVESTOR R
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements
Slide 3: Taking decisive actions during COVID-19 pandemic
Taking decisive actions during COVID-19 pandemic Leveraging strong Oshkosh culture Moved quickly when virus first came to light in China Team member safety remains a top priority Remote work where possible Operating with intense focus on safety and cleanliness standards Oshkosh products &
Slide 4: Q2 results buoyed by strong foundation
Q2 results buoyed by strong foundation (9.7%) Delivered solid sales and earnings $1.99 $1.80 $1.82 despite challenges related to (31.3%) COVID-19 pandemic $1.25 Customer demand declined late in the quarter for non-defense segments Strong orders and backlogs at defense and fire & emergency segm
Slide 5: Defense
Defense U.S. Dept. of Defense designated Oshkosh production, service & spare parts as essential Good stability and visibility based on solid programs of record JLTV FMTV FHTV Strong backlog enhanced by key JLTV & FHTV orders in the quarter Working with suppliers and managing facilities
Slide 6: Access Equipment
Access Equipment Solid Q2 performance despite impact of COVID-19 Production levels in China back to planned capacity after quarter end China facility expansion continues Quickly implemented actions to modify production schedules with dynamically changing demand Temporary manufacturing shut
Slide 7: Fire & Emergency
Fire & Emergency Fire trucks remain critical for first responders in cities & towns across North America and the world Another quarter of strong orders leading to record backlog Identified Q2 supplier quality issue, expect to resolve over next two quarters Working to overcome operational imp
Slide 8: Commercial
Commercial Both RCV and concrete mixer businesses remain essential Customer activity has slowed as a result of COVID- 19 pandemic Working to address supply chain continuity Simplification still a primary focus Strong presence at ConExpo led by new, redesigned S-series 2.0 front discharge c
Slide 9: Consolidated results
Consolidated results Dollars in millions, except per share amounts Second Quarter 2020 2019 Q2 comments Net Sales $ 1,796.7 $ 1,990.2 Sales impacted by: % Change (9.7)% 5.5% − Lower access equipment and fire Operating Income $ 133.6 $ 175.6 & emergency segment sales + Higher defense sales % Change
Slide 10: Update on remainder of FY20
Update on remainder of FY20 • Not providing specific financial expectations for FY20 • Cost reduction plans to deliver $80-100 million pre-tax savings through end of FY20 • Strong balance sheet • Liquidity of $1.2 billion • Paused share repurchases • Reduced planned CapEx by $40 million • Q3 likely
Slide 11: Well positioned and leveraging strong People First culture
Well positioned and leveraging strong People First culture • Oshkosh is a different integrated global industrial • Well positioned to manage effectively through crisis • Strong balance sheet and liquidity • Essential products & services • Strong backlogs in defense and fire & emergency segments • Mo
Slide 12: Contacts
Contacts: Patrick N. Davidson Senior Vice President, Investor Relations pdavidson@oshkoshcorp.com 920-502-3266 Jeffrey D. Watt Director, Investor Relations jwatt@oshkoshcorp.com 920-502-3024 Second Quarter 2020 Earnings Call April 29, 2020 12
Slide 13: Appendix: Access Equipment
Appendix: Access Equipment Dollars in millions Second Quarter 2020 2019 Q2 comments Net Sales $ 693.0 $ 987.6 Sales impacted by: % Change (29.8)% 6.4% − Effects of COVID-19 − Slowing fleet growth Operating Income $ 70.8 $ 119.8 % Change (40.9)% 16.5% Operating income impacted by: − Lower sales v
Slide 14: Appendix: Defense
Appendix: Defense Dollars in millions Second Quarter 2020 2019 Q2 comments Net Sales $ 615.0 $ 486.7 Sales impacted by: % Change 26.4% 13.7% + Continued ramp up of JLTV production Operating Income $ 58.2 $ 52.2 ‒ Lower FHTV program sales % Change 11.5% 7.9% Operating income impacted by: % Margin
Slide 15: Appendix: Fire & Emergency
Appendix: Fire & Emergency Dollars in millions Second Quarter 2020 2019 Q2 comments Net Sales $ 255.6 $ 283.2 Sales impacted by: % Change (9.7)% 3.7% − Supplier quality issues − COVID-19 final inspection issues Operating Income $ 20.5 $ 36.6 % Change (44.0)% 1.7% Operating income impacted by: %
Slide 16: Appendix: Commercial
Appendix: Commercial Dollars in millions Second Quarter 2020 2019 Q2 comments Net Sales $ 236.7 $ 237.9 Sales impacted by: − Lower concrete mixer sales % Change (0.5)% (9.9)% + Higher RCV sales Operating Income $ 8.1 $ 7.8 Operating income impacted by: % Change 3.8% (57.1)% + Lack of weather-rel
Slide 17: Appendix: GAAP to Non-GAAP reconciliation
Appendix: GAAP to Non-GAAP reconciliation The table below presents a reconciliation of the Company’s presented GAAP measures to the most directly comparable non-GAAP measures (in millions, except per share amounts): Three months ended March 31 2020 2019 • Earnings per share-diluted (GAAP) $ 0.99 $ 1
Slide 18: Appendix: Commonly used acronyms
Appendix: Commonly used acronyms ARFF Aircraft Rescue and Firefighting JUONS Joint Urgent Operational Needs Statement AWP Aerial Work Platform L-ATV Light Combat Tactical All-Terrain Vehicle AMPS Aftermarket Parts & Service LRIP Low Rate Initial Production APAC Asia Pacific LVSR Logistic Vehicle Sys
Oshkosh Corporation (Holding Company)Common Stock — Q2 2020 Earnings Presentation on 6ix