Oshkosh To Present on Strategy for Growth in Specialty Truck Markets

16 June 1999

Oshkosh Truck To Present Strategy for Growth in Diversified Specialty Truck Markets at U.S. Bancorp Piper Jaffray Conference

    OSHKOSH, Wis.--June 16, 1999--Oshkosh Truck Corporation , a leading manufacturer of specialty trucks and truck bodies, will present at U.S. Bancorp Piper Jaffray's 22nd annual growth-company investor conference. The presentation will include details of Oshkosh's acquisition strategy which has transformed the company and fueled significant earnings growth. It will be delivered jointly by Robert G. Bohn, president and chief executive officer of Oshkosh Truck, and Charlie Szews, executive vice president and chief financial officer. Oshkosh Truck is included in the industrial growth segment of the four-day conference, which includes more than 1,000 institutional investors among its attendees.
    In 1996, Oshkosh was primarily a defense contractor, with approximately 60 percent of sales generated by defense customers. While it remains the premier supplier of heavy tactical trucks to the U.S. Department of Defense, Oshkosh has diversified its revenue base and is focused on four growth-platform markets -- fire and emergency, construction, refuse, and defense.
    According to Bohn, management has repositioned the company to focus on specialty truck markets where it can leverage technology, manufacturing capabilities and purchasing capabilities to create growth opportunities and achieve the number one market share position.
    In September 1996, Oshkosh Truck purchased Pierce Manufacturing, the leading manufacturer of custom fire apparatus in the U.S. In February 1998, McNeilus Companies was added to the corporation. McNeilus is the leading manufacturer of rear-discharge concrete mixers, which complement Oshkosh's line of front-discharge concrete mixers. In addition, McNeilus is among the top manufacturers of packer bodies for the growing refuse industry.
    Oshkosh continues to actively pursue other acquisitions which fit with the company's leadership in truck and truck body markets.
    The acquisition strategy, combined with economies of scale achieved across divisions, has sharply increased sales and earnings. In fiscal 1998, proforma sales were $1.04 billion, up from $413.5 million in fiscal 1996. Performance in the first half of fiscal 1999 has been strong. In the second quarter of fiscal 1999 alone, net income increased 170 percent to $6.5 million, or $0.76 per share, on sales of $299 million.
    Eighty-one percent of sales are generated by products holding number one market share position. Innovative, new product development has helped the company's brands maintain their leading market-share positions. Products introduced within the last year include Command Zone(TM) electronics and the Hercules(TM) Compressed Air Foam System for custom fire apparatus; the simplified Air-Ware Control System for McNeilus refuse packers, and the Medium Tactical Truck for the U.S. Marine Corps.
    Oshkosh Truck Corporation is a leading manufacturer of specialty trucks and truck bodies for the fire and emergency, defense, and commercial markets. Products are marketed under the Oshkosh, McNeilus and Pierce brand names.