Yahoo Finance Oshkosh Slips as Q4 Results to Fall Short of Forecast, Cost Pressures Persist
By Dhirendra Tripathi
Investing.com – Oshkosh stock (NYSE:OSK) fell 1.6% in Friday’s trading as the company said its revenue in the fourth quarter ended September 30 is likely to be around $2.05 billion as per preliminary estimates, lower than the forecast of $2.10 billion it had handed out in July.
The company blamed rising raw material and freight costs for its revised guidance and said they continue to be challenging and would likely carry over into 2022.
Adjusted profit per share is likely to be 90 cents to 95 cents. The company will reveal the final numbers on October 28.
The company had reported $1.78 billion in consolidated sales in the fourth quarter of the last financial year. In July this year, it said its fourth-quarter sales would grow by 18%. This would have translated into sales of $2.10 billion for the fourth quarter.
It said the significant supply chain and logistics disruptions were more than what it anticipated, and the unavailability of parts has hampered its ability to produce and ship units, contributing to labor inefficiencies.
President and Chief Executive Officer John C. Pfeifer said the company had taken price increases in its non-defense segments over the past six to nine months to absorb higher raw material and freight costs.
“However, due to our backlogs, we do not believe this price catch-up will occur until the end of the second quarter of calendar 2022. If cost escalation persists, we will take additional pricing actions,” he said in a note.
Cost pressures on one side, Pfeifer said the company expects robust customer demand to continue for its access equipment, fire and emergency and commercial segments.
Oshkosh is now moving to a January to December financial year to “better align the timing of its business planning and reporting activities with those of its customers.”
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