Net sales in Oshkosh’s access equipment segment, which includes JLG branded MEWPs and telehandlers, fell 13.1 percent to $717.8 million in the first quarter of 2020, the company reports. Operating income rose 3.9 percent compared to 2019 results.
The company cited lower sales volumes for both aerial work platforms and telehandlers in North America and the Europe, Africa and Middle East region. Strong sales growth was reported in the Asia Pacific region. It said lower sales volumes in North America resulted from rental company customers slowing down their capital expenditures for fleet growth. Income grew, it said, due to “favorable price/cost dynamics, favorable mix, and improved operational efficiencies.”
Sales in the commercial sector, which include McNeilus-branded concrete mixers and IMT-branded service trucks, increased 0.9 percent to $224.2 million. Operating income fell 4.8 percent in the quarter.
Corporate results reflected a decrease of 6 percent in consolidated net sales compared to 1Q 2019, or $1.7 billion. Operating income fell 32 percent to $109.1 million.
“We delivered first quarter results, including sales of $1.7 billion and earnings per share of $1.10, in line with our expectations,” said Wilson R. Jones, president/CEO, in a prepared statement. “With large favorable contract adjustments in the defense segment last year, we expected lower earnings in the quarter compared to the prior fiscal year quarter. Also, during the quarter, our access equipment segment experienced lower market activity. Despite these challenges, our team continued to embrace our People First culture and successfully executed the plan to deliver these results, including higher access equipment segment operating income on lower sales.
“During the quarter, our defense segment received a Joint Light Tactical Vehicle (JLTV) order for just over $800 million that included requirements for the segment’s first 30 JLTVs for an international customer. We look forward to receiving additional orders for this innovative next generation vehicle from more international allies.
“It’s still early in the year, but there are a number of positive items that give us confidence in reaffirming our full year earnings per share estimate range of $7.30 to $8.10, including first quarter results that were in line with our expectations; successfully concluding negotiations during the quarter with most of the access equipment segment’s key rental company customers; solid backlogs across all four segments and signs of stabilization in macro- economic data,” said Jones.