QUOTE AND NEWS
Market Intelligence Center  1 hr ago  Comment 
The patented algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center found a trading opportunity with Oshkosh Corp (OSK) that should provide a 5.04% return in just 106 days. Sell one Oct. '15 call at the $40.00 level...
Market Intelligence Center  Jun 18  Comment 
Oshkosh Corp (OSK) traded between $46.01 and $46.63 before closing at $46.27 Wednesday and presents some attractive trading opportunities today. MarketIntelligenceCenter.com’s patented algorithms selected a Oct. '15 $45.00 covered call for a net...
TheStreet.com  Jun 16  Comment 
NEW YORK (TheStreet) -- Shares of Oshkosh were falling 7.6% to $46.48 on heavy trading volume Tuesday after the truck manufacturer lowered its earnings guidance for the fiscal year 2015. Oshkosh lowered its fiscal 2015 EPS estimates to a range...
Market Intelligence Center  Jun 8  Comment 
After closing Friday at $50.79, Oshkosh Corp (OSK) presents an attractive opportunity to get a 5.29% return in just 130 days, which is an annualized return of 14.84% (for comparison purposes only). To enter this trade, sell one Oct. '15 $50.00...
Market Intelligence Center  Apr 23  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Oshkosh Corp (OSK) that should provide a 2.09% return in just 57 days. Sell one Jun. '15 call at the $45.00 level for each 100 shares of...
Market Intelligence Center  Mar 31  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithm on Oshkosh Corp (OSK) could yield about 3.14% (10.61% annualized, for comparison purposes only) in 108 days. Pair a long position in the stock with the Jul. '15 $45.00...
Market Intelligence Center  Feb 12  Comment 
Oshkosh Corp (OSK) presents a trading opportunity that offers a 4.05% return in just 64 days. A covered call on Oshkosh Truck at the $45.00 level expiring on Apr. '15 offers an assigned return rate of 4.05% or 23.08% annualized. This trade...
Market Intelligence Center  Jan 5  Comment 
MarketIntelligenceCenter.com's patented trade-picking algorithms have identified an attractive covered-call trade on Oshkosh Corp (OSK). Look at the Mar. '15 $45.00 covered call for a net debit in the $43.71 area. This trade has a duration of 74...




 

Oshkosh Truck (NYSE: OSK) manufactures fire trucks, ambulances, cement trucks, tow trucks and cranes under the Oshkosh, Pierce, Jerr-Dan, MTM and other brand names. The company also produces medium duty (able to carry up to 7 tons off-road) and heavy duty (able to carry up to 13 tons off-road) trucks for the U.S. military and its allies.[1][2]

OSK's products compete with similar products from Terex (TEX), BAE Systems (BAESY), Navistar International (NAV) and Federal Signal (FSS).

Business Overview

Business & Financial Metrics[3]

In 2009, OSK incurred a net loss of $1.10 billion on revenues of $5.23 billion. The represents a continuing drop in profitability for the company, which generated only $79.3 million in net income on $1.18 billion in revenues during 2008.

Business Segments[4]

Access Equipment (44.5% of total revenues)

Oshkosh added the Access Equipment segment in December 2006 when it purchased JLG for $3.2 billion. The segment manufactures aerial work platforms, scissor lifts and telehandlers (a mix between a cherry-picker and a forklift).[5] Access Equipment also provides financing and rental purchasing programs to customers. The segment sells its products to industrial equipment dealers and rental companies.[6] Oshkosh's Access Equipment products compete with similar products manufactured by companies like Genie Industries and small private companies.[7]

Defense (27. 1% of total revenues)

The Defense segment manufactures proprietary, all-wheel drive trucks for the military applications. The segment's products include heavy payload trucks such as the HEMTT and medium payload trucks such as the MTVR.[8] The Defense segment sells nearly all of its products to the U.S. Department of Defense and continued growth in the segment is driven mostly by the company's continued ability to win contracts with the U.S. Department of Defense.[9] Oshkosh's defense products compete with similar products from companies like BAE Systems (BAESY) and International Military and Government LLC.[10]

Fire & Emergency (16.9% of total revenues)

This segment primarily manufactures fire trucks based on custom and commercial chassis but also makes specialized fire trucks for airports (ARFF vehicles), ambulances and tow-trucks.[11] The Fire & Emergency segment sells its products to federal and local municipalities world wide as well as airports, hospitals and towing companies around the world.[12] Oshkosh's Fire & Emergency products compete with similar products from companies such as Federal Signal (FSS).[13]

Commercial (11.8% of total revenues)

This segment manufactures garbage trucks and other waste collection vehicles for waste management companies and utilities. The Commercial segment also manufacturers front and rear discharge cement trucks as well as truck mounted cranes. In addition to manufacturing its products, the segment offers its customers financing services.[14] The company sells its Commercial products to construction companies, waste management companies and industrial equipment rental companies through a network of distribution and service centers.[15] Oshkosh's Commercial products compete with similar products manufactured by companies like Terex (TEX).[16]

Key Trends and Forces

Rising raw materials costs compress Oshkosh's gross margin

If the cost of purchasing raw materials increases Oshkosh's gross margin decreases. On the other hand if the cost of purchasing raw materials decreases, Oshkosh's gross margin increases. Oshkosh attempts to pass increases in the price of raw materials on to its customers, but often can't do so because of its contract structure.[17]

Oshkosh depends on U.S. Government contracts for a large portion of it's revenues

In 2009, contracts with the U.S. Government Defense Department generated 27.1% of Oshkosh's total revenues.[18] If Oshkosh were to lose one or more of it's government contracts due to budget cuts or failure to meet contractual obligations, they would find themselves losing as much as a quarter of their total revenue.[19]

Key Competitors

  • Terex (TEX) produces aerial work platforms under the Genie Industries brand name. The company also manufactures construction equipment, cranes, and road building equipment. The company's aerial work platforms, cranes and cement trucks compete directly with those produced by Oshkosh's Access Equipment and Commercial segments.[20]
  • BAE Systems (BAESY) manufactures vehicles for armed forces operating over land, air and water. In addition to producing military vehicles, the company manufactures aerospace products. The company's military trucks compete directly with those produced by Oshkosh's Defense segment.[21][22]
  • Navistar International (NAV) manufactures commercial trucks under the International Trucks and MaxxForce brands in North America as well as engines and aftermarket parts for trucks. The company also produces medium and heavy duty trucks for the U.S. military under the International Military and Government LLC name. The trucks the company manufactures for the military compete with those produced by Oshkosh's Defense segment.[23]
  • Federal Signal (FSS) manufactures safety and utility vehicles such as fire trucks, ambulances and utility vehicles. The company's ambulances and fire trucks compete directly with those produced by Oshkosh's Fire & Emergency segment.[24]

References

  1. Oshkosh HEMTT Brochure
  2. Oshkosh MTVR
  3. OSK 2009 10-K pg. 55  
  4. OSK 2009 10-K pg. 94  
  5. OSK 2007 10-K: Products,pg 5
  6. OSK 2007 10-K: Marketing, Sales, Distribution and Service,pg 8X
  7. OSK 2007 10-K: Competition,pg 11
  8. OSK 2007 10-K: Products,pg 5-6
  9. OSK 2007 10-K: Marketing, Sales, Distribution and Service,pg 8
  10. OSK 2007 10-K: Competition,pg 11
  11. OSK 2007 10-K: Products,pg 6-7
  12. OSK 2007 10-K: Marketing, Sales, Distribution and Service,pg 9
  13. OSK 2007 10-K: Competition,pg 11-12
  14. OSK 2007 10-K: Products,pg 7-8
  15. OSK 2007 10-K: Marketing, Sales, Distribution and Service,pg 9
  16. OSK 2007 10-K: Competition,pg 12
  17. OSK 2007 10-K: Risk Factors,pg 18
  18. OSK 2007 10-K: Customers and Backlog,pg 12
  19. OSK 2007 10-K: Risk Factors,pg 17
  20. Google Finance: TEX
  21. Google Finance: BAESY
  22. Business Week: BAESY
  23. Google Finance: NAV
  24. Google Finance: FSS
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