OSHKOSH, Wis. (WBAY) - The COVID-19 pandemic has taken a toll on earnings for Oshkosh Corporation. The heavy equipment and defense company has announced cost-saving plans that include furloughs, lower salaries and temporary plant closures.
On Wednesday, Oshkosh Corporation reported 2020 second quarter net income of $68.6 million, or $0.99 per diluted share. That's compared to 2019 2Q earnings of $128.5 million or $1.82 per diluted share.
Net sales were down 9.7 percent from last year as "a result of significantly lower sales in the access equipment segment and lower fire & emergency segment sales, offset in part by higher defense segment sales."
“Oshkosh delivers essential products and services and we have large customer backlogs in both our defense and fire & emergency segments, providing good visibility for these businesses well into fiscal 2021. Despite excellent visibility in these two segments, we are 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. Our integrated supply chain is collaborating across the world to pursue alternatives with our supply partners and communicate frequently with our people to mitigate these risks," said Wilson R. Jones, Oshkosh Corporation President and Chief Executive Officer.
Jones said the company is implementing a plan to decrease costs for the second half of the 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. 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," says Jones.
The company reported a 29.8 percent decrease in sale of access equipment--forklifts and aerial lifts, for example. That's attributed to the "global economic shutdown as a result of COVID-19." The company says rental company customers are slowing down capital expenditures after two years of growth.
Oshkosh Corp recorded a 9.7 percent decrease in fire and emergency sales. They say that's the result of supplier issues and travel restrictions related to the virus.
Defense segment sales increased due to the Joint Light Tactical Vehicle program with the United States military.
CLICK HERE to read the statement to investors.
Oshkosh Corp. employs more than 15,000 people worldwide.
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April 29, 2020 at 08:53PM
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Oshkosh Corp. announces plans for furloughs, salary cuts amid earnings dip - WBAY
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