Oshkosh Truck Reports Record Fiscal 2007

Oshkosh Truck Corporation reported that earnings per share increased 29.7 % to $3.58 on sales of $6.3 billion and net income of $268.1 million for its fiscal year ended September 30, 2007,. These results compare with EPS of $2.76 on sales of $3.4 billion and net income of $205.5 million in fiscal 2006.

For the fourth quarter of fiscal 2007, EPS increased 72.7% to $1.14 on sales of $1.8 billion and net income of $85.4 million. These results compare with EPS of $0.66 on sales of $0.9 billion and net income of $49.2 million for last year’s fourth quarter.

Commenting on the results, Robert G. Bohn, chairman and chief executive officer of Oshkosh Truck, said "The Oshkosh Truck family of companies delivered another exceptional quarter, led by our newest segment, access equipment. This truly outstanding performance by JLG during the quarter propelled us to another all-time record for full-year sales and net income as JLG became a more integral part of our business. I can’t say enough about the efforts put forth by everyone involved as we work together to grow this great company."

"Our defense business continued to grow swiftly as we ramped up truck production in the second half of the fiscal year in preparation for further expected growth in fiscal 2008. Our industry-leading Pierce fire truck brand drove solid performance in our fire & emergency segment, as they posted a strong quarter, a strong year and gained market share," added Bohn.

Bohn concluded, "Our European refuse business, the Geesink Norba Group, has underperformed our expectations and we are now in the midst of a major restructuring of that business. As part of the restructuring, we have had to make some difficult decisions on facility rationalization and headcount reduction. But, we believe that these moves will enable us to successfully turn this business around and return it to profitability."

The acquisition of JLG Industries contributed sales of $840.0 million in the fourth quarter of fiscal 2007. Sales grew in the company’s fire and emergency and defense segments, while the company’s commercial segment sales declined due to lower demand for concrete mixers in North America subsequent to the diesel engine emissions standards changes effective January 2007 and lower residential construction activity.

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

Access Equipment – Access equipment segment sales were $840.0 million for the quarter, while operating income was $114.5 million, or 13.6% of sales. Sales for the segment were 46.6% higher in the quarter than sales for JLG as a stand-alone company for the same period last year. Compared to JLG’s pre-acquisition results for the same period in 2006, sales reflected higher worldwide demand for aerial work platforms and the addition of the sales of Caterpillar® branded telehandlers, offset in part by lower demand for JLG-owned telehandler brands in North America.

Defense – Defense segment sales increased 28.6% to $422.5 million for the quarter compared to the prior year’s fourth quarter due to an increase in sales of heavy and medium trucks to the U.S. Department of Defense, offset in part by a decrease in sales of trucks under a contract with the UK Ministry of Defence that concluded earlier this year, and lower parts and service sales. Increased new and remanufactured truck sales reflected higher federal funding for such vehicles, while parts and service sales declined on lower armor-related sales.

Operating income in the fourth quarter was up 32% to $72.4 million, or 17.1% of sales, compared to the prior year quarter operating income of $54.8 million, or 16.7% of sales. Segment operating margin increased as revenues increased faster than relatively flat operating expenses.

Fire & Emergency – Fire and emergency segment sales increased 8.7% to $291.8 million for the quarter compared to the prior year quarter. The increase in sales reflected double-digit percentage increases in sales of domestic fire apparatus and airport products, offset in part by lower international fire apparatus sales.

Operating income was up 22.8% to $26.3 million, or 9.0% of sales, compared to the prior year quarter operating income of $21.4 million, or 8.0% of sales. The increase in operating income during the quarter was primarily due to year over year improvement in the Company’s ambulance business.

Commercial – Commercial segment sales decreased 21.8% to $249.6 million in the fourth quarter compared to the prior year quarter. Operating income decreased 118% to a loss of $3.1 million, or 1.2% of sales, compared to income of $17.2 million, or 5.4% of sales, in the prior year quarter. The decreases in both sales and operating income were driven by expected lower domestic concrete mixer volume subsequent to the January 1, 2007 changes to diesel engine emissions standards and lower residential construction activity. Charges of $4.8 million related to a facility rationalization at the Company’s European refuse business also contributed to the decrease in operating income for the segment.

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