Q2 2013 Earnings Call
April 30, 2013 9:00 am ET
Patrick N. Davidson - Vice President of Investor Relations
Charles L. Szews - Chief Executive Officer and Director
Wilson R. Jones - President and Chief Operating Officer
David M. Sagehorn - Chief Financial Officer and Executive Vice President
Stephen E. Volkmann - Jefferies & Company, Inc., Research Division
Eli S. Lustgarten - Longbow Research LLC
Steve Barger - KeyBanc Capital Markets Inc., Research Division
Andrew Edouard Buscaglia
Charles D. Brady - BMO Capital Markets U.S.
Jerry Revich - Goldman Sachs Group Inc., Research Division
Ann P. Duignan - JP Morgan Chase & Co, Research Division
Mircea Dobre - Robert W. Baird & Co. Incorporated, Research Division
Walter S. Liptak - Global Hunter Securities, LLC, Research Division
Basili Alukos - Morningstar Inc., Research Division
Previous Statements by OSK
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It is now my pleasure to introduce your host, Pat Davidson, VP of Investor Relations for Oshkosh Corporation. Thank you. Mr. Davidson, you may begin.
Patrick N. Davidson
Thanks, Brenda. Good morning, everybody and thanks for joining us. Earlier today, we published our second quarter 2013 results. A copy of the release is available on our website at www.oshkoshcorporation.com. Today's call is being webcast and is accompanied by a slide presentation, which includes a reconciliation of non-GAAP measures used during this call and which is also available on our website. The audio replay and slide presentation will be available on our website for approximately 12 months.
And please refer now to Slide 2 of that presentation. Our remarks that follow, including answers to your questions, include statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed or implied by such forward-looking statements.
These risks include, among others, matters that we have described in our Form-8K filed with the SEC this morning and other filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all.
All results stated on this call are for continuing operations attributable to Oshkosh Corporation unless otherwise stated. Results for our ambulance business have been reclassified to discontinued operations for all periods presented.
Also, all references on this call to a quarter or a year are to our fiscal quarter or fiscal year, unless otherwise stated.
Our presenters today include Charlie Szews, our Chief Executive Officer; Wilson Jones, President and Chief Operating Officer; and Dave Sagehorn, Executive Vice President and Chief Financial Officer.
Please turn to Slide 3, and I'll turn it over to you, Charlie.
Charles L. Szews
Thank you, Pat, and good morning. It's a pleasure to be speaking with all of you this morning. We are happy to announce another quarter of strong results. When we thought about how to best describe the quarter, we kept coming back to the same words: disciplined execution. We're working very hard to the launch of the Oshkosh Operating System to create a culture focused on disciplined execution, to serve and delight our customers and shareholders. Our team has been focused on disciplined execution of our MOVE strategy, and the results are evident as the team delivered year-over-year improvements in operating income margins in each of our 4 segments and second quarter earnings per share of $0.96, which has more than doubled last year's second quarter earnings per share.
Despite mixed economic signals around the globe, we experienced strong demand for Access Equipment and concrete placement products during the second quarter. These businesses have benefited from the ongoing housing recovery underway in the United States, as well as replacement-driven demand, particularly in the case of our Access Equipment business, as customers are renewing aged fleets with purchases of new equipment.
We also expect to see improvement in nonresidential construction activity in the coming years, which we believe will bolster demand for our products. In addition to reporting our second quarter results, today, we are increasing our outlook for the full year to an adjusted earnings per share range of $2.90 to $3.15. This increase in our estimates reflects our confidence in our plans and company-wide drive to execute.
Please turn to Slide 4. About 6 weeks ago, we have commenced a country -- cross-country trip to visit with most of our largest shareholders, as well as with prospective investors, and I know that many of you that we visited are on the call today. The purpose of our trip was to reinforce regular and open shareholder communication, discuss progress with our MOVE strategy and reaffirm our commitment to drive to our 2015 targets. Discussions we had were both positive and productive.
Our strong execution in the first half of 2013 gives us confidence that we are on track to deliver our targeted 2015 results of $4 to $4.15 per share. Of course, there may be some bumps along the way, but on the whole, we're attracting to our plan and we're generally on schedule with our MOVE initiatives. The ongoing rollout of our Oshkosh Operating System provides a framework and the tools for employees to successfully execute our MOVE strategy. We're managing our businesses to maximize the impact of market recovery on our performance.
We're actively optimizing our cost structure, which is contributing to our improved margins. Today, we'll describe some new products launched under our value innovation initiatives.