Goldman Sachs Global Capital Goods Conference 2005. Forward Looking Statements.
Our remarks that follow, including answers to your questions and these slides, include statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. All of our statements, other than statements of historical fact, including statements regarding Oshkosh Truck’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. In addition, forward-looking statements generally can be identified by the use of words such as “expect,” “intend,” “estimates,” “anticipate,” “believe,” “should,” “plans,” or similar words. We cannot give any assurance that such expectations will prove to be correct. Some factors that could cause actual results to differ materially from our expectations include the accuracy of assumptions made with respect to our expectations for fiscal 2006, the Company’s ability to turnaround the business of the Geesink Norba Group sufficiently to support its valuation resulting in no non-cash impairment charge for Geesink Norba Group goodwill, the Company’s ability to turnaround its McNeilus business, the expected level of U.S. Department of Defense procurement of the Company’s products and services, the cyclical nature of the Company’s commercial and fire and emergency markets, the effects of rapidly rising steel and component costs, risks related to reductions in government expenditures, the uncertainty of government contracts, the challenges of identifying, completing and integrating acquisitions and risks associated with international operations. Additional information concerning these and other factors is contained in our filings with the SEC, including our Form 8-K filed November 1, 2005. Except as set forth in such Form 8-K, we disclaim any obligation to update such forward-looking statements.
Superior Historic Returns
And, a positive outlook
Heavy Defense Trucks #1 100%
Medium Marine Trucks #1 100%
Fire Apparatus #1 31%
Wreckers and Carriers #2 25%
Airport Products #1 79%
Ambulances #3 8%
Rear-Discharge Concrete Mixers #1 75%
Front-Discharge Concrete Mixers #1 51%
Concrete Batch Plants #1 48%
Refuse Truck Bodies - U.S. #1/#2 27%
- Europe #1 20%
Source: Company estimates of its fiscal 2004 U.S. market share only, except for refuse truck bodies - Europe.
Seek to substantially improve product performance
While reducing customers whole life costsIntroducing Revolutionary Technologies into Mature Markets
Dollars in millions
Sales - $ $1,445.3 $1,743.6 $1,926.0 $2,262.3 $2,959.9
- Growth 8.7% 20.6% 10.5% 17.5% 30.8%
Operating income - $ 98.3 111.1 129.2 180.4 267.2
- Margin 6.8% 6.4% 6.7% 8.0% 9.0%
- Growth 0.2% 13.0% 16.3% 39.6% 48.1%
EPS (1) (2) - $/Share 0.74 0.86 1.08 1.57 2.18
- Growth 1.4% 16.2% 25.6% 45.4% 38.9%Excellent Financial Trends
(1) Beginning in fiscal 2002, goodwill and indefinite-lived assets are no longer amortized under U.S. GAAP. Fiscal 2001 EPS includes $0.10 in charges, net of tax related to this amortization.
(2) Restated for August 2005 two-for-one stock split.
% growth 9.8% - 13.2%
income $297.5 - $310.0 million
% margin 9.2% - 9.3%
% growth 11.3% - 16.0%
EPS $2.40 - $2.50
% growth 10.1% - 14.7%
Expect defense and fire and emergency to report steady growth
Targeting recovery of U.S. margins and a return to profitability in Europe in commercial segmentPositioned to Sustain Growth in Fiscal 2006
(1) Estimates as of November 1, 2005