QUOTE AND NEWS
StreetInsider.com  Apr 10  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Oshkosh+%28OSK%29+Layoffs+Slated+for+JuneJuly+2014+Include+700+Hourly+Positions/9371120.html for the full story.
DailyFinance  Feb 21  Comment 
Oshkosh Corporation (NYSE: OSK) today announced that it successfully completed its previously announced private offering of $250 million aggregate principal amount of senior notes due 2022 to qualified institutional buyers...
Benzinga  Feb 19  Comment 
Analysts at Citigroup initiated coverage on shares of J.C. Penney Company (NYSE: JCP) with a “neutral” rating. The target price for J.C. Penney is set to $6.50. J.C. Penney's shares closed at $6.11 yesterday. Stifel Nicolaus initiated...
SeekingAlpha  Jan 30  Comment 
By Stephen Simpson, CFA: Couple improving conditions in the largest end market and solid progress with internal self-improvement efforts, and you have Oshkosh (OSK) handily beating the Street's fiscal first quarter estimates and sitting close to a...
Benzinga  Jan 28  Comment 
Silicon Motion Technology (NASDAQ: SIMO) shares gained 12.50% to touch a new 52-week high of $16.74 after the company reported upbeat Q4 results and issued strong FY14 revenue forecast. Sharps Compliance (NASDAQ: SMED) shares reached a new...
SeekingAlpha  Jan 28  Comment 
Complete Story »
Benzinga  Jan 28  Comment 
Oshkosh (NYSE: OSK) posted upbeat fiscal first-quarter earnings and lifted its full-year forecast. Oshkosh's quarterly profit surged to $54.9 million, or $0.63 per share, from a year-ago profit of $46.3 million, or $0.51 per share. Its...
StreetInsider.com  Jan 28  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Earnings/Oshkosh+%28OSK%29+Tops+Q1+EPS+by+30c%2C+Raises+FY+2014+Outlook/9092886.html for the full story.
Banking Business Review  Dec 17  Comment 
Singapore-based RHB OSK Asset Management, a subsidiary of RHB Investment Bank (RIBB), is planning more joint ventures (JVs) and acquisitions in Hong Kong and China through its Hong Kong subsidiary.
SeekingAlpha  Dec 16  Comment 
By Papa Of Four: Google (GOOG) has said that it wants to have a self driving car ready to go in 2017 for a 2018 rollout. That is relatively soon, in development terms; just a couple of years to fix a multitude of problems. Surprisingly the...




 

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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