The Oshkosh Corp. board of directors has approved a change in the company’s fiscal year to a calendar year beginning on Jan. 1 and ending on Dec. 31, effective for the fiscal year beginning Jan. 1, 2022 . Historically, the company’s fiscal year began on Oct. 1 and ended on Sept. 30. Oshkosh is taking this action to better align the timing of its business planning and reporting activities with those of its customers.
To facilitate the transition to the new fiscal year, the company will have an abbreviated fiscal year from Oct. 1 to Dec. 31, 2021.
The company also provided an update on business conditions that impacted the fourth quarter of fiscal 2021 and will likely continue into 2022.
While Oshkosh is seeing strong growth in demand, it is experiencing significant supply chain and logistics disruptions as well as material and freight cost inflation, similar to other companies, that are beyond the company’s prior expectations.
The unavailability of parts has impacted the manufacturer’s ability to produce and ship units, particularly within its access equipment category, and has contributed to labor inefficiencies. As a result, Oshkosh now expects to report both revenues and diluted earnings per share for the fourth quarter of fiscal 2021 that are lower than what it discussed in its fiscal third quarter conference call.
“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 C. Pfeifer, Oshkosh Corp. president and CEO. “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.”
Oshkosh is in the process of closing its books and compiling its fiscal 2021 financial statements, so final results are not yet available. Preliminarily, the company expects to report fourth quarter fiscal 2021 revenues of approximately $2.05 billion, leading to diluted EPS of approximately $1.10 to $1.15 and adjusted diluted EPS of approximately $0.90 to $0.95. The company expects the current challenges to persist into the stub period and expects substantially lower EPS compared to the fourth quarter of fiscal 2021.
“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 and emergency, and commercial segments. Additionally, we remain confident in our defense segment with its strong foundation of current programs complemented by significant recent program wins, including the U.S. Postal Service’s next-generation delivery vehicle and the U.S. Army’s Medium Caliber Weapons System. We are navigating the current environment by taking all appropriate actions within our control, and we remain confident that Oshkosh is well-positioned to drive long-term profitable growth,” Pfeifer said.