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About Oshkosh Corporation

Oshkosh Corp. makes vehicles that carry troops, lift firefighters, pick up trash, tow cars, and handle an assortment of other heavy vehicle duties. The company's commercial and access lines include products such as CON-E-CO concrete batch plants, McNeilus refuse vehicle bodies, Jerr-Dan tow trucks, and JLG aerial work platforms. Its emergency offerings range from snow blowers to aircraft rescue and firefighting vehicles (Pierce). Oshkosh makes its products in about 30 plants in the US and around the world. The North America accounts for most of its sales. Vehicles are sold via dealers to global airport, institutional, construction, and municipal markets. Oshkosh also makes tactical vehicles for the Department of Defense. The company traces its roots back to 1917.

Operations

Oshkosh divides its operations into four segments: access equipment; defense; fire & emergency; and commercial.

The Access Equipment segment—consisting of its JLG and Jerr-Dan brands—generates about half of total revenue and makes aerial work platforms, tow trucks, and telehandlers used by rental companies, construction contractors, manufacturing companies, home improvement stores, and the military.

The Defense segment (about 25% of sales) manufactures vehicles that haul tanks, missile systems, ammunition, fuel, troops, and cargo for a broad range of missions. It supplies US and foreign military organizations, as well as law-enforcement agencies, with military tactical wheeled vehicles. These include the Joint Light Tactical Vehicle (JLTV), Heavy Expanded Mobility Tactical Truck (HEMTT), the Heavy Equipment Transporter (HET), and the Logistic Vehicle System Replacement (LVSR).

The Fire & Emergency segment (some 15%) supplies commercial and custom firefighting vehicles and equipment (Pierce), vehicles for aircraft rescue, vehicles for snow removal (through Airport Products), and communications broadcasting vehicles (Frontline).

The Commercial segment (more than 10% of sales) makes rear- and front-discharge concrete mixers, refuse collection vehicles, and portable and stationary concrete batch plants for ready-mix companies.

Geographic Reach

The Wisconsin-based Oshkosh has about 30 manufacturing locations in seven US states and in Australia, Canada, China, France, Mexico, the UK, and Romania. It also has joint ventures in Europe and a commercial entity in Mexico. The company sells and services products in more than 150 countries around the globe, but the North America accounts for about 85% of sales.

Sales and Marketing

Oshkosh's JLG unit sells its products across six continents through independent rental companies and distributors, as well as through other company-owned sales and service branches. Oshkosh markets its Jerr-Dan carriers and wreckers through a network of independent distributors. The US government represents about a quarter of the company's sales.

Oshkosh advertising expenses totaled $24.9 million, $21.1 million and $23.0 million in fiscal 2019, 2018 and 2017, respectively.

Financial Performance

Oshkosh's revenue has been growing steadily over the past five years. Fiscal 2019 (ended September) saw triple- digit growth with about 10% increase to $8.4 billion in sales compared with $7.7 million 2018.

The increase in 2019 was primarily driven by an 8% spike in sales in the Access Equipment segment, specifically higher demand for aerial work platforms and telehandlers in both North America and Europe.

Profits rocketed to $579.4 million in 2019, up 23% from $471.9 million the prior year. Higher gross margins came with higher sales, which helped drive profit, as did a tax benefit resulting from US tax reforms. Offsetting factors in Oshkosh's profits were higher costs for raw materials due to US trade policies and significantly higher logistics costs.

Cash at the end of fiscal 2019 was $448.8 million, a decrease of $6.2 million from the prior year. Cash from operations contributed $568.3 million to the coffers, while investing activities used $153.0 million, mainly for building, machinery, and equipment. Financing activities used another $421.6 million for dividends to stockholders and the company's stock repurchase program.

Strategy

Oshkosh Corporation continues to look for ways to streamline operations and save money. The company's ongoing "MOVE" strategy involves simplification initiatives to reduce complexity in its business. These include standardizing tools and processes across the enterprise, using lean principles to maximize production in its manufacturing facilities and decrease lead times, and targeting markets in developing countries in Asia, Eastern Europe, the Middle East, Latin America, and Africa. In addition, the company is focused on increasing its net sales, profitability and cash flow and maintaining a strong balance sheet by capitalizing on its competitive strengths and pursuing an integrated business strategy.

In the Defense segment, Oshkosh continues to ramp up its JLTV program to deliver on the US Department of Defense's order backlog and projected sales. The DoD's 2019 budget supports potential additional sales. It also is focusing on expanding internationally with multiple international demonstrations to defense organizations in the UK and other countries.

 

Company Background

Bernhard Mosling and William Besserdich founded Oshkosh Truck in 1917, attracting investors with Old Betsy, a four-wheel-drive, 3,000-pound truck. Over the next few decades, the company developed a range of heavy-duty vehicles. Sales took off when the US Army gave truck contracts to Oshkosh during WWII. Commercial sales increased after the war, the result of demand from mining and plantation companies. Oshkosh Truck went public in 1985. To reflect its more diverse operations, Oshkosh changed its name from Oshkosh Truck Corporation to Oshkosh Corporation in 2008.

Oshkosh Corporation

1917 Four Wheel Dr
Oshkosh, WI 54902-2400
Phone: 1 (920) 502-3009

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: OSK
Stock Exchange: , NYSE
Chairman: Richard M. Donnelly
CEO: Wilson R. Jones
EVP and CFO: David M. Sagehorn
Employees (This Location): 1,300
Employees (All Locations): 15,400

Major Office Locations

Oshkosh, WI

Other Locations

Colton, CA
Riverside, CA
Lone Tree, CO
East Granby, CT
Bradenton, FL
Clearwater, FL
Doral, FL
Lakeland, FL
Villa Rica, GA
Fort Wayne, IN
Goshen, IN
Covington, LA
Burlington, MA
Beltsville, MD
Hagerstown, MD
Warren, MI
Blair, NE
Merrimack, NH
Las Vegas, NV
Cincinnati, OH
Fairfield, OH
Gahanna, OH
Orrville, OH
Bedford, PA
Greencastle, PA
Mc Connellsburg, PA
Morgantown, PA
Shippensburg, PA
Hutchins, TX
Salt Lake City, UT
West Valley City, UT
Arlington, VA
Puyallup, WA
Appleton, WI
Greenville, WI
Milwaukee, WI
Oshkosh, WI
Weyauwega, WI
Beijing, China
Cariacica, Brazil
Lasalle, Canada