Oshkosh Truck Corp., a leading manufacturer of specialty trucks and truck bodies, said second-quarter net income increased 16% to $14.1 million,
or $0.81 per share, on sales of $453.4 million for the quarter ended March 31, 2003.
This compares with net income of $12.2 million, or $0.70 per share, on sales of $415.6 million for last year's second quarter. Oshkosh maintained its earnings per share estimate for the full year ending September 30, 2003 at $3.70 per share.
Sales increased 9.1% in the second quarter. Operating income increased 3.4% to $24.4 million, or 5.4% of sales, compared to $23.6 million, or 5.7% of sales, in the prior year's second quarter.
Defense sales increased 2.7% to $130.6 million for the quarter, largely due to higher parts sales. Operating income in the second quarter was up 32.5%, to $6.7 million, or 5.2% of sales, compared to prior year operating income of $5.1 million, or 4.0% of sales. Higher earnings for the quarter reflect the higher parts sales and lower bid and proposal spending. Also, margins on the MTVR contract were 4.3% in the second quarter of fiscal 2003 compared to 3.3% in the second quarter of fiscal 2002.
Commercial sales increased 7.3%, to $182.4 million, for the quarter as a higher proportion of "package" chassis and body sales offset lower overall unit sales, especially in rear-discharge concrete mixers where unit volumes declined 32.1%. Operating income decreased 6.4% to $11.4 million, or 6.2% of sales, compared to 7.2% of sales in the prior year quarter. Operating income margins were lower due to a higher percentage of "package" chassis and body sales versus "body-only" sales in the current year quarter. The company earns a lower overall operating income margin on sales that include purchased commercial chassis.
The company reported that net income increased 22.3% to $25.4 million, or $1.46 per share, for the first six months of fiscal 2003 on sales of $879.7 million compared to $20.8 million, or $1.21 per share, for the first six months of fiscal 2002 on sales of $777.1 million.
Operating income increased 8.2% to $44.7 million, or 5.1% of sales, in the first six months of fiscal 2003 compared to $41.4 million, or 5.3% of sales, in the first six months of fiscal 2002.