Oshkosh posts high-than-expected profit, raises outlook

Tue Jan 28, 2014 7:29am EST

Jan 28 (Reuters) - Oshkosh Corp posted higher-than-expected quarterly profit on Tuesday and raised its full-year outlook, as strong sales of its aerial access equipment to the construction industry offset a sharp decline in sales of tactical vehicles to the defense industry.

Oshkosh, the maker of specialty trucks and booms, reported its fiscal first-quarter profit rose to $54.9 million, or 63 cents a share, from $46.3 million, or 51 cents a share, during the comparable quarter last year.

Revenue fell 12.6 percent to $1.53 billion, pulled down by fewer sales of vehicles and parts to defense customers.

But sales of higher-margin access equipment more than made up for the decline in defense sales. Oshkosh said the increased demand for the units that are used to hoist workers and material into hard-to-reach places on building sites was even seen in Europe. The company saw it as a possible sign the region may be poised for a stronger recovery than previously expected.

Analysts, on average, expected a profit of 33 cents a share on sales of $1.46 billion, according to Thomson Reuters estimates.

Oshkosh also raised its full-year earnings per share target to a range of $3.40 to $3.65 from $3.10 to $3.40 a share.

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