The improvement was principally the result of higher replacement driven aerial work platform unit volumes in North America and Europe and favourable pricing.
It was offset in part by the absence of US military telescopic handler sales under a contract that was completed in the fourth quarter of FY2013.
Sales of access equipment, excluding US military contract sales, rose 17.2% in Q1 FY14 (ended December 31, 2013) compared to Q1 FY13.
The increase in aerial work platform unit volumes in North America was due in part to the acceleration of some orders ahead of Tier 4 engine price increases.
In Q1 FY14, access equipment segment operating income increased 84.6% to $90.3 million, or 13.5% of sales, compared to prior year first quarter operating income of $48.9 million, or 8.4% of sales.
“The increase in operating income was primarily the result of favourable product mix due to a higher concentration of aerial work platform sales, higher sales volume and the realisation of previously announced price increases,” Oshkosh Corporation said.
JLG’s results in the first quarter also benefited from a $7.5 million multi-year US military contract.
Oshkosh Corporation said its overall income increase was due to the performance of JLG.
The company reported Q1 FY14 net income of $54.9 million, or 63c per diluted share, compared to $46.3 million, or 51c per diluted share in Q1 FY13.
Its consolidated operating income rose to $96.5 million in Q1 FY14, or 6.3% of sales, compared to $80.3 million, or 4.6% of sales, in Q1 FY13.
The only low note was in the corporation’s consolidated sales, which saw a 12.6% decrease to $1.53 billion.
The company said higher sales in each of the company’s non-defence segments were more than offset by lower defence segment sales.
“Ongoing strength in our access equipment segment, led by continued replacement demand in North America, offset the expected decline in our defence segment operating income,” Oshkosh Corporation CEO Charles Szews said.
“European rental companies also began placing orders for access equipment earlier in our fiscal year than in recent years, which could indicate a stronger recovery for access equipment in Europe in fiscal 2014 than previously expected.”
