About Oshkosh Corporation
Oshkosh Corp. makes vehicles that carry troops, lift firefighters, pick up trash, tow cars, and handle an assortment of other heavy vehicle duties. The company's commercial and access lines include products such as CON-E-CO concrete batch plants, McNeilus refuse vehicle bodies, Jerr-Dan tow trucks, and JLG aerial work platforms. Its emergency offerings range from snow blowers to aircraft rescue and firefighting vehicles (Pierce). Oshkosh makes its products in about 30 plants in the US and around the world. The North America accounts for most of its sales. Vehicles are sold via dealers to global airport, institutional, construction, and municipal markets. The company traces its roots back to 1917.
Oshkosh divides its operations into four segments: access equipment; defense; fire & emergency; and commercial.
The Access Equipment segment—consisting of its JLG and Jerr-Dan brands—generates about 40% of total revenue and makes aerial work platforms, tow trucks, and telehandlers used by rental companies, construction contractors, manufacturing companies, home improvement stores, and the military.
The Defense segment (about 30% of sales) manufactures vehicles that haul tanks, missile systems, ammunition, fuel, troops, and cargo for a broad range of missions. It supplies US and foreign military organizations, as well as law-enforcement agencies, with military tactical wheeled vehicles. These include the Joint Light Tactical Vehicle (JLTV), Heavy Expanded Mobility Tactical Truck (HEMTT), the Heavy Equipment Transporter (HET), and the Logistic Vehicle System Replacement (LVSR).
The Fire & Emergency segment (more than 15%) supplies commercial and custom firefighting vehicles and equipment (Pierce), vehicles for aircraft rescue, vehicles for snow removal (through Airport Products), and communications broadcasting vehicles (Frontline).
The Commercial segment (more than 10% of sales) makes rear- and front-discharge concrete mixers, refuse collection vehicles, and portable and stationary concrete batch plants for ready-mix companies.
The Wisconsin-based Oshkosh has about 30 manufacturing locations in seven US states and in Australia, Canada, China, France, Mexico, the UK, and Romania. It plans to cease operation in Romania by June 2021. The company also performs contract maintenance services out of multiple warehousing and service facilities owned and/or operated by the US government and third parties, including locations in the US, Japan and multiple other countries in Europe and the Middle East.
Sales and Marketing
The company utilizes an extensive network of representatives and dealers supported by hundreds of internal and external sales and service representatives throughout the world.
Oshkosh's JLG unit sells its products across six continents through independent rental companies and distributors, as well as through other company-owned sales and service branches. Oshkosh markets its Jerr-Dan carriers and wreckers through a network of independent distributors.
Oshkosh advertising expenses totaled $16.0 million, $24.9 million, and $21.1 million in fiscal 2020, 2019, and 2018, respectively.
Oshkosh's revenue has been growing steadily over the past five years except in 2020, which dipped by 18% from the previous year. Consequently, net income also fell in 2020 after consistently climbing for the last five years.
Sales in fiscal 2020 (ended September) dropped to $6.9 billion in 2020 from $8.4 billion in 2019. This was primarily due to an almost 40% drop in sales in the Access Equipment segment. The company saw a drop in sales in all its reportable segments except for its Defense business which climbs by 11%.
Profits dropped to $324.5 million in 2020, a decline by 44% from $579.4 million the prior year. The COVID-19 pandemic significantly impacted demand in certain markets in fiscal 2020, with the company's construction-related markets impacted, most severely.
Cash at the end of fiscal 2019 was $582.9 million, an increase of $134.5 million from the prior year. Cash from operations contributed $327.3 million to the coffers, while investing activities used $77.6 million, mainly for building, machinery, and equipment. Financing activities used another $115.5 million for repayments of debt.
Oshkosh Corporation continues to look for ways to streamline operations and save money. The company's ongoing "MOVE" strategy involves simplification initiatives to reduce complexity in its business. MOVE stands for Market Leader Delighting Customers, Optimize Cost and Capital Structure, Value Innovation, Emerging Market Expansion. These include standardizing tools and processes across the enterprise, using lean principles to maximize production in its manufacturing facilities and decrease lead times, and targeting markets in developing countries in Asia, Eastern Europe, the Middle East, Latin America, and Africa. In addition, the company is focused on increasing its net sales, profitability and cash flow and maintaining a strong balance sheet by capitalizing on its competitive strengths and pursuing an integrated business strategy.
Mergers and Acquisitions
In 2021, Oshkosh acquired Michigan- based Pratt Miller, which specializes in advanced engineering, technology and innovation across the motorsports and multiple ground vehicle markets, for a purchase price of $115 million. The acquisition will enhance the combined company's product performance and provide Oshkosh Corporation with immediate access to additional and complementary engineering expertise
Bernhard Mosling and William Besserdich founded Oshkosh Truck in 1917, attracting investors with Old Betsy, a four-wheel-drive, 3,000-pound truck. Over the next few decades, the company developed a range of heavy-duty vehicles. Sales took off when the US Army gave truck contracts to Oshkosh during WWII. Commercial sales increased after the war, the result of demand from mining and plantation companies. Oshkosh Truck went public in 1985. To reflect its more diverse operations, Oshkosh changed its name from Oshkosh Truck Corporation to Oshkosh Corporation in 2008.
1917 Four Wheel Dr
Oshkosh, WI 54902-2400
Phone: 1 (920) 502-3009
Employer Type: Publicly Owned
Stock Symbol: OSK
Stock Exchange: , NYSE
Chairman: Richard M. Donnelly
CEO: Wilson R. Jones
EVP and CFO: David M. Sagehorn
Employees (This Location): 1,300
Employees (All Locations): 14,400
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