Oshkosh lowers defence sales outlook; shares drop

Oshkosh Corp reported lower quarterly results and cut its defence segment outlook on Thursday, sending the specialty truckmaker's shares down nearly 9 percent. US defence spending pressures, as well as strained municipal budgets that cut demand for other products Oshkosh makes, such as fire and emergency equipment, are weighing on sales.
Oshkosh lowered its outlook for defence sales this fiscal year to between $4.1 billion and $4.2 billion from its prior estimate of $4.4 billion to $4.5 billion. The delayed US budget is pushing some truck sales into fiscal 2012, it told analysts on a conference call.
Shares of Oshkosh were down 8.5 percent at $32.49 in morning trading. The S&P 500 Index was little changed. Oshkosh posted a net profit of $67.9 million, or 74 cents per share, for the second quarter ended March 31, down from $292.6 million, or $3.22 a share, a year earlier.