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Armoured vehicle and access equipment sales help Oshkosh Corp cut debt pile

|Includes: Oshkosh Corporation (OSK)

Oshkosh Corporation (NYSE:OSK) a manufacturer of speciality vehicles including medium tactical vehicles (MTV’s), commercial, fire and emergency vehicles, and access equipment reported fiscal 2010 further quarter net sales of US$2.11 billion and increase of $640 million compared to the comparable quarter in fiscal 2009. 

Net income in fiscal Q4 from continuing operations was US$116.6 million, or $1.28 per share, up sharply from the comparable quarter in 2009 when the company reported income of $45.7 million, or 55 cents per share.

The strong result in the final quarter of Oshkosh’s fiscal year helped lift full year earnings per share (NYSEARCA:EPS) to US$8.72.

The company attributed the strong growth to an increase in sales of its MRAP All terrain Vehicle (M-ATV) and higher third party sales of its access equipment.

"We completed a record fiscal year on a high note with strong fourth quarter results," said Robert Bohn, Oshkosh Corporation chairman and chief executive officer. "The strength of the Oshkosh franchise was evident as we delivered all-time records in fiscal 2010 for revenues, operating income and net income. This performance, coupled with our improved balance sheet as a result of our substantial debt repayment during fiscal 2010, puts us in a strong position as we prepare for the gradual economic recovery.

"As we enter fiscal 2011, we have a solid foundation with our defense business supported by a strong backlog. We also continue to see signs that lead us to believe that our non-defense businesses will generally deliver improved results in fiscal 2011," commented Bohn.

Operating income increased to $233.6 million, or 11.1% of sales, for the fourth quarter of fiscal 2010 compared with operating income of $118.2 million, or 8% of sales, in the prior year fourth quarter.

Corporate operating expenses decreased $3.9 million to $27.5 million, while interest expense net of interest income decreased $13.4 million to $47.5 million.

Average debt outstanding decreased from $2.3 billion during the fourth quarter of fiscal 2009 to $1.4 billion during the fourth quarter of fiscal 2010.

For the full year, Oshkosh generated sales of US$9.84 billion and net income of $813 million, or $8.94 per share.

Disclosure: no position