Specialty vehicle and vehicle body manufacturer Oshkosh expect a loss of approximately $1.22 to $1.32 per share for the third quarter of fiscal 2008 compared to the company’s prior earnings per share estimate of $1.40 to $1.50 for the quarter.
Oshkosh attributes this expected loss to a non-cash charge in connection with a goodwill impairment with Geesink Norba Group, a European refuse collection manufacturer. The impairment charge on the third fiscal quarter earnings is estimated to be $175 million, or $2.32 per share. Additionally, the company’s access equipment segment, the fire and emergency segment and the commercial segments are not expected to meet anticipated performance expectations. The company’s CEO Robert Bohn attributes lower than expected sales in North America and in Europe to general economic weakness, drooping non-residential construction and rising raw material and fuel costs.