JLG parent Oshkosh has reported fiscal 2021 second quarter net income of $99.6 million, or $1.44 per diluted share, compared to $68.6 million, or $0.99 per diluted share, in the second quarter of fiscal 2020.
Results for the second quarter of fiscal 2021 included after-tax charges of $2.5 million associated with restructuring actions in the Access Equipment segment and $0.2 million associated with business acquisition costs in the Defense segment.
Results for the second quarter of fiscal 2020 included an after-tax charge of $6.5 million associated with debt extinguishment costs incurred in connection with the refinancing of the company’s senior notes and a valuation allowance on deferred tax assets in Europe of $11.4 million. Excluding these charges, adjusted net income was $102.3 million, or $1.48 per diluted share, and $86.5 million, or $1.25 per diluted share, for the second quarter of fiscal 2021 and 2020, respectively. 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 2021 increased 5.1 percent to $1.89 billion as a result of higher Fire & Emergency and Access Equipment segment sales, offset in part by lower sales in the Defense segment.
Consolidated operating income in the second quarter of fiscal 2021 increased 5.4 percent to $140.8 million, or 7.5 percent of sales, compared to $133.6 million, or 7.4 percent of sales, in the second quarter of fiscal 2020. The increase was primarily due to improved product mix, the impact of higher consolidated sales volume and lower spending resulting from the Covid-19 pandemic, offset in part by higher incentive compensation accruals and a decrease in cumulative catch-up adjustments on contract margins in the Defense segment. Excluding $2.2 million of pretax charges related to restructuring actions and $0.3 million of pretax business acquisition costs, adjusted operating income in the second quarter of fiscal 2021 was $143.3 million, or 7.6 percent of sales.
“We are pleased to report strong fiscal second quarter results that exceeded our expectations and were higher than the prior year. Our Access Equipment and Fire & Emergency segments both delivered strong revenue and profitability, and our outlook across the company has improved considerably over the past several months,” said John C. Pfeifer, president and CEO of Oshkosh Corporation. “We expect our strong second quarter performance and improved outlook to yield growth in revenues, operating income and earnings per share in fiscal 2021 compared with last year’s results.
“We are pleased to reinstate our practice of providing expectations for the current fiscal year. For fiscal 2021, we expect full year revenues to be in the range of $7.75 billion to $7.95 billion, leading to expected diluted earnings per share of $6.10 to $6.60 or adjusted earnings per share of $6.35 to $6.85," said Pfeifer. "Both of these estimates represent growth compared to fiscal 2020, and we expect to exit fiscal 2021 in a position of strength."
Specifically, Access Equipment segment sales in the second quarter of fiscal 2021 increased 6.5 percent to $738.2 million due to improved market demand in Asia and North America. The second quarter of fiscal 2020 was impacted by low market demand, due in large part to the global economic shutdown as a result of the Covid-19 pandemic.
Access Equipment segment operating income in the second quarter of fiscal 2021 increased 13.7 percent to $80.5 million, or 10.9 percent of sales, compared to $70.8 million, or 10.2 percent of sales, in the second quarter of fiscal 2020. The increase in operating income was primarily due to the impact of higher sales volume, lower spending resulting from the Covid-19 pandemic and improved product mix, offset in part by higher incentive compensation accruals. Excluding $2.2 million of pretax charges related to restructuring actions, adjusted1 operating income in the second quarter of fiscal 2021 was $82.7 million, or 11.2 percent of sales.