Oshkosh Corporation (NYSE: OSK) today reported fiscal 2013 fourth quarter net income of $35.7 million, or $0.40 per diluted share, compared to $83.7 million, or $0.91 per diluted share, in the fourth quarter of fiscal 2012. All results are for continuing operations attributable to Oshkosh Corporation, unless stated otherwise.
Results for the fourth quarter of fiscal 2013 were adversely impacted by a $5.5 million after-tax non-cash impairment charge related to an intangible asset in the access equipment segment and after-tax costs of $2.4 million related to the extension of a union contract with defense segment production employees. Results for the fourth quarter of fiscal 2012 included after-tax non-cash charges of $4.5 million related to the adjustment of stock-based compensation, after-tax charges of $2.2 million associated with the curtailment of pension and other postretirement benefit plans and discrete tax benefits of $31.0 million. Excluding these items 1, fiscal 2013 fourth quarter adjusted net income was $43.6 million, or $0.49 per diluted share, compared to $59.5 million, or $0.64 per diluted share, in the fourth quarter of fiscal 2012.
Consolidated net sales in the fourth quarter of fiscal 2013 were $1.73 billion, a decrease of 15.8 percent compared to the prior year fourth quarter. Higher sales in the Company’s non-defense segments were more than offset by lower defense segment sales.
Consolidated operating income in the fourth quarter of fiscal 2013 was $65.2 million, or 3.8 percent of sales, compared to $98.3 million, or 4.8 percent of sales, in the prior year fourth quarter. Excluding the items described above, adjusted consolidated operating income 1 in the fourth quarter of fiscal 2013 was $78.0 million, or 4.5 percent of sales, compared to $108.9 million, or 5.3 percent of sales, in the prior year fourth quarter. Operating income margins in the fourth quarter of fiscal 2013 declined primarily as a result of lower volume in the Company’s defense segment and higher corporate operating expenses, offset in part by favorable performance in the Company’s access equipment and commercial segments.“We delivered fourth quarter results that exceeded the high end of our most recently announced estimated earnings range, finishing up a year that significantly exceeded our initial expectations,” said Charles L. Szews, Oshkosh Corporation chief executive officer. “Continued strong demand for access equipment in North America and improved demand for concrete mixers in the U.S. partially offset a significant sales decline in our defense segment in the fourth quarter.