Oshkosh Truck Expects Q2 and Full Year To Be Lower Than Estimates

    OSHKOSH, Wis.--March 16, 2001--Oshkosh Truck Corporation [NASDAQ: OTRKB], a leading manufacturer of specialty trucks and truck bodies, announced today that its second quarter and full year sales and earnings will be lower than its previously reported estimates. The company expects to report earnings per share for the second quarter in the range of $0.65 to $0.70, compared to $0.70 a year ago. Reported earnings in the second quarter are expected to benefit from the settlement of certain tax audits. Based on lower second quarter performance and the existing business climate, Oshkosh Truck currently expects its annual earnings per share to fall in the $2.80 to $3.00 range, compared to the $3.45 estimate previously reported.
    The significant factor affecting second-quarter results is slowing sales in the company's commercial segment, largely attributed to a progressive softening in the North American concrete placement market. Oshkosh Truck's concrete placement orders started strong in January but have progressively deteriorated since that time.
    "We're seeing the effects of a substantial slowing of the U.S. economy in ready-mix producers' cautious approach to capital spending, including the purchase of new concrete mixer trucks. Ready-mix producers are pouring concrete at levels near those witnessed in 2000, but this has not translated into concrete placement orders as directly as we had originally predicted," said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer.
    Commenting further on the company's performance, Bohn explained, "We anticipate demand in our defense and fire and emergency businesses to remain strong, helping balance performance for the remainder of fiscal 2001. In addition, we expect Oshkosh's refuse sales to improve in the third and fourth quarters, particularly in light of our current negotiations with Waste Management."
    During the second quarter, Oshkosh made a move to strengthen the company's long-term aftermarket parts sales in the concrete placement market with the purchase of inventory and certain assets from Temco. Temco has stopped production of concrete mixers, batch plants and concrete mixer parts, except as required by current customer contracts. The purchase positions Oshkosh to provide improved parts support for more than 13,000 mixers, sold by Temco and others, which are currently in use. The initial purchase closing occurred on March 15, 2001.
    Oshkosh will release second quarter results on April 26. At that time, the company will comment further on sales and earnings for fiscal 2001 and provide more specific quarter-by-quarter, business-by-business estimates for the remainder of fiscal 2001.
    Oshkosh will conduct a conference call for investors today at 3:00 p.m. central standard time to discuss its estimated second quarter and full year results, the Temco acquisition and other matters. The conference call will be available simultaneously, in a listen-only format, via webcast. To access the webcast, investors should go to www.oshkoshtruck.com at least 15 minutes prior to the event.

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