BUSINESS NEWS
01 Nov 07. Oshkosh Truck Corp said earnings climbed 74 percent on sales at its JLG unit. The shares fell after the company predicted weakness in the U.S. housing market will hurt next year’s sales. Fourth-quarter net income increased to $85.4 m, or $1.14 a share, (2006: $49.2m, or 66 cents), a year earlier. Sales surged 98 percent to $1.79bn in the quarter ended Sept. 30, the Oshkosh, Wisconsin-based company said today in a statement. Chief Executive Officer Robert Bohn bought JLG Industries Inc. last year to add products such as aerial-work platforms and boost sales in markets including Eastern Europe and China. JLG’s $840m in sales last quarter compensated for Oshkosh’s concrete-truck business, which was hurt by a decline in new U.S. home construction. JLG’s revenue rose 47 percent from a year ago, when it operated as a standalone company, Oshkosh said. Oshkosh fell $1.34, or 2.5 percent, to $52.86 at 10:13 a.m. in New York Stock Exchange composite trading. Earlier, the shares dropped to $49.77, the biggest percentage decline in a year. They had risen 12 percent this year before today. During the quarter, the company recorded a $4.8m charge related to the restructuring. Fourth-quarter profit was estimated to be $1.08, the average estimate of nine analysts surveyed by Bloomberg. Analysts projected Operating income at the access-equipment unit totaled $114.5m, or 13.6 percent of sales. JLG contributed 54 cents a share to fourth-quarter profit, more than the company’s previous estimate of 20 cents to 25 cents. Higher international sales and favorable exchange rates accounted for the improvement, Oshkosh said. Oshkosh paid about $3bn for JLG, which sells mobile- work platforms, including booms that lift workers and materials on job locations. Defense revenue increased 29 percent to $422.5m on increased sales of heavy and medium trucks to the Pentagon. Sales decreased to the UK’s Ministry of Defense. (Source: Bloomberg)
Nov 07. Kaman Reports 2007 Third Quarter, Nine Months Results. On October 29, 2007, the company announced that it has signed a definitive agreement to sell 100 percent of the stock of its wholly owned subsidiary, Kaman Music Corporation, to Fender Musical Instruments Corporation for approximately $117min cash, subject to specified post closing purchase price adjustments. Closing is targeted to occur prior to January 1, 2008, subject to the satisfaction of customary closing conditions, including termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Net earnings from continuing operations for the third quarter of 2007 were $9.4m, or [Article].38 per share diluted, an increase of 47.7% for net earnings and 46.2% for earnings per share diluted over the $6.4m, or [Article].26 per share diluted, reported for the third quarter of 2006. The third quarter results for 2007 and 2006 include [Article]$.8m and $2.5m, respectively, in pre-tax charges for the company’s SH-2G(A) helicopter program for Australia. Including discontinued operations, net earnings for the third quarter of 2007 were $11.7m, or [Article].47 per share diluted, increases of 34.3% and 30.6%, respectively over the $8.7m, or [Article].36 per share diluted, reported for the third quarter of 2006. Net sales from continuing operations for the third quarter of 2007 were $274.9m, an increase of 9.0% over the $252.1m reported for the third quarter of 2006. For the first nine months of 2007 the company reported net earnings from continuing operations of $27.5m, or $1.11 per share diluted, increases of 53.6% and 50.0%, respectively, compared to net earnings from continuing operations of $17.9m, or [Article].74 per share diluted, in the first nine months of 2006. The 2007 and 2006 first nine months results include $5.6m and $7.8m, respectively, in pretax charges for the Australia program. Including discontinued operations, net earnings were $31.9m, or $1.28 per share diluted, increases of 4