Oshkosh Corporation (OSK) stock rose nearly 2% today after the company, which produces specialty vehicles and military trucks, announced financial results for the three months ended December 31, 2021.
Net sales for the quarter increased 13.7% to $1.79 billion compared to the three months ended December 31, 2020.
The company reported net income for the quarter of $6.2 million, or $0.09 per diluted share, compared to $69.5 million, or $1.01 per diluted share, for the three months ended December 31, 2020.
Supply Chain Pressure
John C. Pfeifer, Oshkosh Corporation president, and CEO drew attention to the challenging environment that his team operated in and its ability to drive revenue.
Pfeifer commented, “Our results for the three months ended December 31, 2021, were largely in line with our expectations as Oshkosh team members persevered through increasing COVID levels, supply chain and logistics disruptions and elevated input costs to deliver sales growth as well as positive operating income and earnings per share.”
“We posted revenue growth of nearly 14 percent, which was enabled by a number of actions we have taken and continue to execute to improve our supply chain and operations resiliency."
The company was largely able to deliver strong revenue growth thanks to its Access Equipment segment, which reported operating income for the quarter of $32.3 million - a whopping 29.7% jump from the same period last year.
The increase was primarily due to the impact of the higher sales volume, improved pricing, favorable regional sales mix, and the absence of charges related to restructuring actions offset by higher material and logistics costs.
Going into 2022, OSK will seek to bolster its lagging Fire & Emergency sector, which saw net sales decline 20.2% in the quarter due to supply chain disruptions, as well as impacted production and delivery of Pierce fire trucks.
However, the company is optimistic that the company can significantly increase its EPS estimates for 2022 across all divisions.
Pfeifer commented, "With strong customer demand, significant price realization in our backlog, improved visibility to input costs and our continued efforts to manage supply chain dynamics, we are initiating fiscal 2022 diluted earnings per share expectations with a range of $5.75 to $6.75."
"We believe we are well-positioned as we continue to invest in our business and in our people."