New book by Larry Connors Click here Improve your trading - See how
The Oshkosh, Wisconsin-based company, while reporting its financial results for the third quarter in August, had forecast earnings for the fourth quarter in a range of $0.50-$0.65 per share. On average, ten analysts polled by First Call/Thomson Financial currently expect the company to report earnings for the quarter of $0.59 per share. However, earnings for the quarter represent a sharp drop from earnings of $1.14 per share reported by the company in the same period last year.
Oshkosh noted that during the last several months, it has improved its cost structure by reducing its workforce by 10% and lowering discretionary spending. In addition, the company has reduced its working capital by selling excess inventory and rationalizing production. The company expects these actions to enable it to remain competitive in fiscal 2009.
Oshkosh now expects to reduce its debt to $2.80-$2.85 billion at September 30, 2008 compared to its prior expectations of debt of $2.85-$2.90 billion.
Robert Bohn, chairman and chief executive officer of Oshkosh Corp. said, "Our ability to generate strong cash flow from earnings and working capital initiatives has driven better than anticipated debt reduction in the fourth quarter, and we expect to exit fiscal year 2008 with debt in the range of $2.80 billion - $2.85 billion."
Bohn added that with expectations of a defense business that will grow and a sharper focus on cash flow generation, the company expects to drive significant cash flow and debt reduction in fiscal 2009 despite challenging market condition and exit the year with a stronger balance sheet.
Oshkosh expects to release its financial results for the fourth quarter and fiscal year 2008 on November 3, 2008 and plans to discuss its expectations for fiscal 2009 at that time.
In August, Oshkosh reported a loss for the third quarter of $84.3 million, or $1.14 per share, compared to net income of $90.6 million, or $1.21 per share, in the year-ago quarter, hurt by charges related to the non-cash impairment of intangible assets. The company recorded pre-tax charges of $175.2 million, or $2.33 per share, related to a non-cash impairment of intangible assets of the Geesink Norba Group. Net sales for the quarter increased 6.4% to $1.97 billion from $1.85 billion in the prior-year quarter, exceeding analysts' consensus revenue estimate of $1.89 billion.
At that time, the company lowered its earnings outlook, excluding impairment charges, for fiscal 2008 to a range of $3.15-$3.30 per share from the prior range of $4.15-$4.35 per share. Analysts currently expect earnings of $3.26 per share for the year.
Earlier this month, the company's peer, Terex Corp. (TEX | Quote | Chart | News | PowerRating) cut its earnings forecast for fiscal year 2008 citing soft market conditions and rising input costs in aerial work platforms and construction segments in Western Europe and the U.S. The company lowered its earnings outlook for fiscal 2008 to a range of $6.35-46.65 per share from the prior range of $6.85-$7.15 per share. The company also lowered its net sales outlook for the full year to a range of $10.2 billion-$10.6 billion from the prior range of $10.5 billion-$10.9 billion.
In Friday's regular trading session, OSK is trading at $10.95, up $1.39 or 14.54% on a volume of 4.47 million shares. The stock has been trading in a range of $9.05-$63.55 in the past 52 weeks.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
