The coronavirus pandemic decreased sales and income for Oshkosh Corp., but the company overall remains in a strong financial position, according to the 2020 fourth quarter and 2020 annual results released today.
For the fiscal fourth quarter, Oshkosh, which makes defense vehicles, fire and emergency vehicles, commercial vehicles and access equipment, reported a net income of $100 million, compared to $150 million during the same period last year. Consolidated net sales in the fourth quarter of fiscal 2020 decreased 18.7 percent to $1.78 billion largely as a result of a 39 percent decrease in sales in Oshkosh’s access equipment segment as the COVID-19 pandemic continued to impact demand for construction-related equipment.
For fiscal 2020, Oshkosh posted net sales of $6.86 billion and a net income of $324.5 million compared to $8.38 billion and $579.4 million in fiscal 2019.
“As demonstrated by our solid performance in the fiscal fourth quarter, Oshkosh team members continued to work hard and delivered strong results in the face of adversity and global uncertainty caused by the COVID-19 pandemic,” Oshkosh Corp. CEO Wilson R. Jones said in a statement. “We responded to changing markets across the globe by taking swift actions to control costs and deliver value to our customers across numerous essential businesses.”
The reduction in net incomes for fiscal 2020 compared to fiscal 2019 was the result of the impact of lower consolidated sales volumes due in large part to the COVID-19 pandemic, an adverse product mix, adverse absorption as a result of lower production and higher favorable cumulative contract adjustments in fiscal 2019.
“I am confident in our team’s ability to navigate through these challenging market conditions and position Oshkosh Corp. to take advantage of future opportunities,” Jones said. “This includes a recent contract we received from the Belgium Ministry of Defence for more than 300 of our next generation, high performance Joint Light Tactical Vehicles (JLTV). The contract is another vote of confidence from one of our NATO allies that the JLTV is the vehicle they need for critical missions.”
The company did not release an outlook for fiscal 2021 but Jones said “we are staying close to our customers and will respond to opportunities that arise. We are confident in the long-term potential of our end markets and will continue to rely on our People First culture as we persevere through the current environment.”
For the complete earnings statement, click here.