Oshkosh Corp. has reported its fiscal 2015 fourth quarter net income was $50.3 million, or $0.64 per diluted share, compared to $77.8 million, or $0.93 per diluted share, in the fourth quarter of fiscal 2014.
Consolidated net sales in the fourth quarter of fiscal 2015 were $1.58 billion, a decrease of 5.4 percent compared to the prior year fourth quarter. Higher sales in the defense, fire & emergency and commercial segments were not sufficient to offset a decline in access equipment segment sales resulting from lower demand in North America. On a constant currency basis, sales decreased 3.6 percent compared to the fourth quarter of fiscal 2014.
Consolidated operating income in Q4 2015 was $86.6 million, or 5.5% of sales, compared to $113.1 million, or 6.8% of sales, in Q4 2014. Fiscal 2015 fourth quarter adjusted consolidated operating income was $89.5 million, or 5.7% of sales, excluding workforce reduction charges of $2.9 million. Fiscal 2014 fourth quarter adjusted consolidated operating income was $116.9 million, or 7.0%, excluding pension curtailment and pension settlement charges that netted to $3.8 million. The decline in consolidated operating income was driven by lower access equipment segment sales.
“Fourth quarter earnings were in line with our revised expectations,” said Charles Szews, Oshkosh’s CEO. “As we expected, our access equipment and concrete mixer businesses experienced soft demand in the fourth quarter, but construction activity in North America and Europe remains on the upswing which we believe will lead to stronger demand for these products in coming months.”
Access equipment segment sales declined 17.5% to $769.5 million for the fourth quarter of fiscal 2015. A slowdown in the order rate in North America was the primary driver of lower shipments in the fourth quarter and was partially offset by improved shipments in Europe. A stronger U.S. dollar also negatively impacted access equipment segment sales by $26.2 million. On a constant currency basis, access equipment segment sales decreased 14.7%.
Operating income for the access segment decreased 55.7% to $56.5 million, or 7.3% of sales, for the fourth quarter of fiscal 2015 compared to $127.4 million, or 13.7% of sales, in the fourth quarter of fiscal 2014.
Access equipment segment results for the fourth quarter of fiscal 2015 included $2.5 million in workforce reduction charges. Excluding these costs, adjusted operating income was $59.0 million, or 7.7% of sales, in the fourth quarter of fiscal 2015. The decrease in operating income was primarily the result of lower sales volume and weaker product mix, adverse manufacturing absorption and provisions for valuation reserves on used equipment as a result of the access equipment market slowdown, offset in part by lower incentive compensation expense.
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