27.06.2008

Oshkosh cuts forecasts

Oshkosh, owner of JLG, is forecasting a drop in its third quarter results, with a loss now expected for the three months to the end of June.

The decline principally relates to a non-cash charge for the impairment of goodwill at the company's European refuse collection vehicle manufacturer, the Geesink Norba Group. The impact of the charge is estimated at around $175 million,

Projected third quarter results also reflect weaker performance at JLG than originally forecast and, to a lesser extent, its fire & emergency and commercial segments.

Oshkosh chairman and chief executive officer, Robert G. Bohn said: Lower than expected sales in both North America and Europe due to a softness in non-residential construction and general economic weakness, and rising costs, have obliged the company to change its outlook for the third quarter and full fiscal year 2008.”

“During the quarter, we also lowered our outlook for Geesink due to a slower and more difficult than expected return to profitability, coupled with expectations of a weaker European economy and higher raw materials costs. This revised outlook has caused us to believe that the value of Geesink no longer supports the goodwill recorded for this business, resulting in the impairment charge we are
announcing today.”