Oshkosh Corp.’s fiscal income for the quarter was $68.6 million, compared to $128.5 million during the same quarter in fiscal 2019, according to results released today. Before including several special charges during the quarter, the adjusted net income was $86.5 million.
Oshkosh Corp. President and CEO Wilson Jones attributed the decrease in income to the COVID-19 pandemic, outlining a plan to help the manufacturer reduce costs during the second half of its fiscal year.
“We quickly responded to uncertainties caused by COVID-19 to our customers, our suppliers and our business as well by reducing production levels and implementing a company-wide cost reduction plan that targets $80 million to $100 million in savings for the second half of fiscal 2020,” Jones said in a release. “The plan includes lower salaries, with executives and board members taking larger decreases, furloughs, temporary plant shutdowns, reduced travel expenses, and project and other discretionary spending reductions.”
Jones said the moves will help Oshkosh “emerge stronger” once the COVID-19 crisis ends.
“We believe these are the right actions for our company as we stay nimble and close to our team members, customers and suppliers,” he said. “Our balance sheet is strong and our liquidity of approximately $1.2 billion at March 31 positions us well to navigate through the global pandemic.”
In the second quarter, the manufacturer saw its consolidated net sales drop 9.7 percent to $1.80 billion compared to the same fiscal quarter in 2019. Consolidated operating income in the second quarter of fiscal 2020 decreased 23.9 percent to $133.6 million, or 7.4 percent of sales, compared to $175.6 million, or 8.8 percent of sales, in the second quarter of fiscal 2019.
While Oshkosh Corp.’s defense and fire and emergency markets are doing well, Jones said the company is “facing uncertain demand in the access equipment and commercial segments as well as potential disruptions with supply chain continuity and team member availability in all of our segments.”