Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Oshkosh Truck Agrees To JLG Industries Pact [Wall Street Journal]
Summary: Oshkosh Truck’s pending acquisition of JLG Industries will be Oshkosh’s 15th acquisition since 1996. Oshkosh stock is up five-fold since 2001; its heavy duty trucks are being used to transport tanks, missiles, ammunition and fuel for U.S. combat units. JLG’s specialty is building aerial platforms that are used to position workers in construction and building maintenance projects. Despite a slowdown in new home building, commercial construction remains strong. Aside from stabilizing the cyclical (i.e. defense) nature of its business, Oshkosh contends that the JLG acquisition will give it stronger leverage when negotiating for raw materials and parts. Oshkosh also wants to incorporate JLG’s aerial platform technology into its line of fire trucks. JLG’s platform technology would enable firefighters to ascend both faster and at less risk.
Related links: Despite Anonymity, Oshkosh Truck Just Keeps Rising • PCCAR: Emissions Fears Priced Into Stock • Keep On Truckin' with PACCAR • BusinessWeek: VW wants amical MAN-Scania solution
Potentially impacted stocks and ETFs: Caterpillar (NYSE:CAT), Fiat S.p.A (NYSEARCA:FIA), DaimlerChrysler (DCX), AB Volvo (VOLV), Navistar International (NYSE:NAV), General Motors (NYSE:GM), Ford (NYSE:F), Federal Signal (NYSE:FSS), PACCAR (NASDAQ:PCAR). ETF: iShares Dow Jones Transportation Average Index Fund (NYSEARCA:IYT)
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