Increases Fiscal 2018 Revenue Expectations

Raises Fiscal 2018 Estimated EPS Range

Declares Quarterly Cash Dividend of $0.24 Per Share

OSHKOSH, Wis.–(BUSINESS WIRE)– Oshkosh Corporation (NYSE: OSK) today reported fiscal 2018 second quarter net income of $110.8 million, or $1.47 per diluted share, compared to $44.3 million, or $0.58 per diluted share, in the second quarter of fiscal 2017. Results for the second quarter of fiscal 2018 included after-tax charges and inefficiencies of $5.8 million associated with restructuring actions in the access equipment and commercial segments. Results for the second quarter of fiscal 2017 included after-tax charges of $13.7 million associated with restructuring actions in the access equipment segment. Excluding these charges and inefficiencies, adjusted1 net income was $116.6 million, or $1.54 per diluted share, in the second quarter of fiscal 2018 compared to $58.0 million, or $0.76 per diluted share, in the second quarter of fiscal 2017. Comparisons in this news release are to the corresponding period of the prior year, unless otherwise noted.

Consolidated net sales in the second quarter of fiscal 2018 were $1.89 billion, an increase of 16.6 percent compared to the second quarter of fiscal 2017. The Company reported double-digit percentage sales growth in all non-defense segments.

Consolidated operating income increased 93.9 percent to $155.9 million, or 8.3 percent of sales, in the second quarter of fiscal 2018 compared to $80.4 million, or 5.0 percent of sales, in the second quarter of fiscal 2017. The increase in operating income in the second quarter of fiscal 2018 was primarily a result of the impact of higher consolidated sales volume, improved performance in the fire & emergency segment and lower costs related to restructuring actions. Excluding $7.0 million of pre-tax charges and inefficiencies related to restructuring actions in the access equipment and commercial segments, adjusted1 operating income in the second quarter of fiscal 2018 was $162.9 million or 8.6 percent of sales. Excluding $17.2 million of pre-tax restructuring-related charges in the access equipment segment, adjusted1 operating income in the second quarter of fiscal 2017 was $97.6 million, or 6.0 percent of sales.

“We are pleased to report another quarter of solid results highlighted by growth in revenue, adjusted operating income and adjusted earnings per share,” said Wilson R. Jones, president and chief executive officer of Oshkosh Corporation. “We continued to benefit in the quarter from a positive economic environment in the United States and strong demand globally for our products. We are also experiencing some challenges related to the positive economic environment, including a tight labor market, a more constrained supply chain and higher logistics and material costs. We are proactively addressing these headwinds, including implementing steel and aluminum surcharges in our non-defense segments.

“During the quarter, our defense segment was awarded the U.S. Army’s FMTV A2 contract providing our team with another tactical wheeled vehicle program of record and solidifying our position as the United States’ premier manufacturer of world class military vehicles. This award gives us visibility to supply the United States military with these impressive medium payload vehicles well into the next decade.

“As a result of our solid second quarter performance and our positive outlook for the remainder of the year, we are raising our full-year fiscal 2018 earnings per share estimate range to $5.10 to $5.55and our adjusted1 earnings per share estimate range to $5.40 to $5.85,” said Jones.

Factors affecting second quarter results for the Company’s business segments included:

Access Equipment – Access equipment segment net sales increased 28.3 percent to $927.9 million in the second quarter of fiscal 2018. The increase in sales was due to improved demand for both aerial work platforms and telehandlers. All regions reported double digit increases in sales in the second quarter of fiscal 2018 as compared to the second quarter of fiscal 2017.

Access equipment segment operating income increased 132.1 percent to $97.7 million, or 10.5 percent of sales, in the second quarter of fiscal 2018 compared to $42.1 million, or 5.8 percent of sales, in the second quarter of fiscal 2017. Access equipment segment results for the second quarter of fiscal 2018 included pre-tax charges and inefficiencies associated with previously announced restructuring actions of $5.2 million. Access equipment segment results for the second quarter of fiscal 2017 included pre-tax charges associated with previously announced restructuring actions of $17.2 million. Excluding these charges and inefficiencies, adjusted1 operating income was$102.9 million, or 11.1 percent of sales, in the second quarter of fiscal 2018 compared to $59.3 million, or 8.2 percent of sales, in the second quarter of fiscal 2017. The increase in adjusted1operating income in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017 was primarily due to the impact of higher sales volume, the recognition of deferred margin upon the receipt of cash and improved price realization, offset in part by challenges associated with the ramp up to higher production volumes.

Defense – Defense segment net sales for the second quarter of fiscal 2018 decreased 4.0 percent to $428.2 million. The decrease in sales was due to the absence of international Mine Resistant Ambush Protected-All Terrain Vehicle (M-ATV) sales in the second quarter of fiscal 2018, largely offset by the continued ramp up of sales to the U.S. government under the Joint Light Tactical Vehicle (JLTV) program.

Defense segment operating income decreased 1.8 percent to $47.8 million, or 11.2 percent of sales, in the second quarter of fiscal 2018 compared to $48.7 million, or 10.9 percent of sales, in the second quarter of fiscal 2017. The decrease in operating income was due to the impact of lower sales volume and an adverse product mix, offset in part by improved manufacturing performance.

Fire & Emergency – Fire & emergency segment net sales for the second quarter of fiscal 2018 increased 15.0 percent to $273.1 million. The increase in sales was due to higher fire apparatus sales and improved pricing.

Fire & emergency segment operating income increased 65.1 percent to $36.0 million, or 13.2 percent of sales, in the second quarter of fiscal 2018 compared to $21.8 million, or 9.2 percent of sales, in the second quarter of fiscal 2017. The increase in operating income was a result of improved pricing, the impact of higher sales volume and improved manufacturing performance, offset in part by higher selling, general and administrative expenses.

Commercial – Commercial segment net sales increased 22.2 percent to $263.9 million in the second quarter of fiscal 2018. The increase in sales was primarily due to higher refuse collection vehicle unit volume.

Commercial segment operating income increased 173.3 percent to $16.4 million, or 6.2 percent of sales, in the second quarter of fiscal 2018 compared to $6.0 million, or 2.8 percent of sales, in the second quarter of fiscal 2017. Excluding restructuring-related charges of $1.8 million, adjusted1operating income in the second quarter of fiscal 2018 was $18.2 million, or 6.9 percent of sales. The increase in operating income was largely a result of the impact of higher sales volume, improved product mix and lower warranty costs. Commercial segment second quarter fiscal 2017 results included $1.3 million of costs related to an accident at one of its manufacturing facilities.

Corporate – Corporate operating costs increased $3.8 million in the second quarter of fiscal 2018 to $42.0 million due primarily to higher incentive compensation costs on higher earnings and higher new product development spending.

Interest Expense Net of Interest Income – Interest expense net of interest income decreased $6.1 million to $8.0 million in the second quarter of fiscal 2018 primarily due to the receipt of interest from a customer that had been on non-accrual status.

Provision for Income Taxes – The Company recorded income tax expense of $36.2 million in the second quarter of fiscal 2018, or 24.6 percent of pre-tax income, compared to $23.6 million, or 35.0 percent of pre-tax income, in the second quarter of fiscal 2017. The decrease in the Company’s effective income tax rate is primarily due to tax reform enacted in the United States. The Company recorded $1.1 million and $1.5 million of discrete tax benefits in the second quarter of fiscal 2018 and 2017, respectively, largely related to favorable share-based compensation tax benefits.

Share Repurchases – The Company deployed cash of $65.0 million to repurchase 839,013 shares of Common Stock in the second quarter of fiscal 2018. Share repurchases did not have a material impact on earnings per share in the second quarter of fiscal 2018.

Six-month Results

The Company reported net sales for the first six months of fiscal 2018 of $3.47 billion and net income of $167.2 million, or $2.21 per diluted share. This compares with net sales of $2.83 billion and net income of $63.5 million, or $0.84 per diluted share, in the first six months of the prior year. Results for the first six months of fiscal 2018 included after-tax charges and inefficiencies of $19.9 million associated with restructuring actions in the access equipment and commercial segments as well as one-time discrete tax benefits of $6.5 million related to the implementation of tax reform in the United States. Excluding these items, adjusted1 net income for the first six months of fiscal 2018 was $180.6 million or $2.38 per diluted share. Results for the first six months of fiscal 2017 included $13.7 million of after-tax restructuring-related charges in the access equipment segment. Excluding this item, adjusted1 net income for the first six months of fiscal 2017 was $77.2 million, or $1.02 per diluted share. The impact of higher consolidated sales, improved performance in the defense and fire & emergency segments and a lower effective tax rate as a result of tax reform in the United States contributed to the significant improvement in net income for the first six months of fiscal 2018 compared to the first six months of fiscal 2017.

Fiscal 2018 Expectations

As a result of the combined impacts of the positive second quarter results, improved demand outlook for access equipment sales, challenges related to the ramp up in production in the access equipment segment and material cost increases, the Company is raising its fiscal 2018 full year outlook. The Company now expects consolidated sales to be $7.4 billion to $7.6 billion, an increase of $300 million from the Company’s previous sales estimate range of $7.1 billion to $7.3 billion. All of the increase in expected sales is attributable to the access equipment segment.

The Company now expects its fiscal 2018 consolidated operating income to be $540 million to $590 million. Excluding anticipated charges and inefficiencies associated with announced restructuring actions in the access equipment and commercial segments, the Company expects its fiscal 2018 adjusted1 operating income to be $575 million to $625 million, compared to its previous estimated adjusted operating income range of $550 million to $600 million. The increase is attributable to expected higher sales in the access equipment segment and improved margins in the defense and fire & emergency segments, offset in part by expected lower margins in the access equipment segment.

The Company now expects its fiscal 2018 diluted earnings per share to be in the range of $5.10 to $5.55. Excluding anticipated charges and inefficiencies associated with announced restructuring actions in the access equipment and commercial segments as well as the impact of one-time discrete items associated with tax reform in the U.S., the Company expects its fiscal 2018 adjusted1 diluted earnings per share to be in the range of $5.40 to $5.85, compared to the prior adjusted diluted earnings per share estimated range of $5.00 to $5.45.

Dividend Announcement

The Company’s Board of Directors today declared a quarterly cash dividend of $0.24 per share of Common Stock. The dividend will be payable on May 29, 2018, to shareholders of record as of May 14, 2018.

Conference Call

The Company will comment on its fiscal 2018 second quarter earnings and its full-year fiscal 2018 outlook during a conference call at 9:00 a.m. EDT this morning. Slides for the call will be available on the Company’s website beginning at 7:00 a.m. EDT this morning. The call will be webcast simultaneously over the Internet. To access the webcast, listeners can go to www.oshkoshcorporation.com at least 15 minutes prior to the event and follow instructions for listening to the webcast. An audio replay of the call and related question and answer session will be available for 12 months at this website.

Forward Looking Statements

This news release 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 regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, which are particularly impacted by the strength of U.S. and European economies and construction seasons; the Company’s estimates of access equipment demand which, among other factors, is influenced by customer historical buying patterns and rental company fleet replacement strategies; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of U.S. Department of Defense (DoD) and international defense customer procurement of products and services and acceptance of and funding or payments for such products and services; risks related to reductions in government expenditures in light of U.S. defense budget pressures, sequestration and an uncertain DoD tactical wheeled vehicle strategy; the impact of any DoD solicitation for competition for future contracts to produce military vehicles; the Company’s ability to increase prices to raise margins or offset higher input costs, including increasing commodity and other raw material costs due to a sustained economic recovery, tariffs or other factors; risks related to facilities expansion, consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; projected adoption rates of work at height machinery in emerging markets; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks associated with international operations and sales, including compliance with the Foreign Corrupt Practices Act; risks that an escalating trade war could reduce the competitiveness of the Company’s products; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity risks and costs of defending against, mitigating and responding to data security threats and breaches; and risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission, including the Form 8-K filed today. All forward-looking statements speak only as of the date of this news release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this news release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.

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