Oshkosh reports “significant’ supply chain disruption
08 October 2021
Oshkosh Corp, owner of JLG, said “significant” supply chain and logistics disruptions as well as rising costs were hindering the production and delivery of machines and that revenues and profits for the fourth quarter of fiscal 2021 would be lower than previously forecast.
The company, which said the problems were impacting its access business in particular, reported strong growth in demand but said the unavailability of parts was holding up production and leading to inefficiencies in labour.
Oshkosh said if cost increases persist it will have to further raise prices.
It expects the challenging conditions to remain through to the end of December.
“We implemented multiple price increases in our non-defense segments over the past six to nine months to combat unprecedented raw material inflation and freight cost escalation,” said John Pfeifer, Oshkosh President and Chief Executive Officer.
“Based on current conditions, we expect that our pricing actions will cover our higher input 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.”
The company expects to report fourth quarter fiscal 2021 revenues of around US$2.05 billion, leading to diluted earnings per share of approximately $1.10 to $1.15.
“Despite the near term pressure, we maintain a positive outlook for our businesses as we expect robust customer demand to continue for our Access Equipment, Fire & Emergency and Commercial segments”, said Pfeifer.
“Additionally, we remain confident in our Defense segment with its strong foundation of current programs complemented by significant recent program wins”.
Meanwhile, Oshkosh has also announced that it will change its fiscal year to the calendar year, starting 1 January and ending on 31 December, effective from January 2022.
Historically, its fiscal year began on 1 October and ended on 30 September 30. Oshkosh said this would “better align the timing of its business planning and reporting activities with those of its customers.”