OSHKOSH, WI -- Oshkosh Truck Corp. has reported second quarter of fiscal 2007 earnings per share (EPS) of 68 cents, on sales of $1.7 billion and net income of $50.9 million. These results compare with EPS of 67 cents on sales of $844.8 million and net income of $49.8 million for last year’s second quarter. Oshkosh’s EPS exceeded the company’s most recent earnings estimate range for the quarter of 50 cents to 57 cents per share. Oshkosh also reaffirmed its estimated range of fiscal 2007 earnings per share of $3.15 to $3.25.

The company said sales in the second quarter of fiscal 2007 nearly doubled, increasing 96.6 percent as compared to the second quarter of fiscal 2006. The recent acquisition of JLG Industries, Inc. contributed sales of $707.9 million to the second quarter of fiscal 2007. Sales also grew in the company’s fire and emergency and commercial segments, while the company’s defense segment sales declined due to an anticipated decrease in parts and service sales.

Commenting on the results, Robert Bohn, chairman, president and chief executive officer, said, “We’re pleased with this most recent performance, and especially encouraged by the strength we continue to experience with JLG, which comprises our new access equipment segment. JLG is the latest and largest of Oshkosh Truck’s acquisitions, and is proving to be the strong and transformational business that we thought it would be. In addition to the solid results from JLG this quarter, we also increased our sales and earnings expectations for JLG for fiscal 2007 and now expect the acquisition to be approximately 25 cents to 35 cents, accretive to earnings in fiscal 2007.”

Operating expenses and inter-segment profit elimination increased $1.6 million to $20.9 million. The increase in the second quarter was largely due to higher personnel costs and integration costs associated with the acquisition of JLG. Interest expense net of interest income for the quarter increased $61.2 million to $61 million compared to the prior year quarter. Higher interest costs were due to additional acquisition-related debt primarily for the acquisition of JLG.

The provision for income taxes in the second quarter decreased to 36 percent of pre-tax income compared to 38 percent of pre-tax income in the prior year quarter. The lower effective tax rate reflected the impacts of the JLG acquisition and the reinstatement of the federal research and development tax credit.

Equity in earnings of unconsolidated affiliates increased to $2.9 million during the second quarter compared to $0.4 million in the prior year quarter due to improved performance of an affiliate in Mexico and the addition of a joint venture in Europe which was acquired in the acquisition of JLG.

Total debt decreased $220.7 million during the second quarter to $3.1 billion at March 31 as compared to $3.3 billion at Dec. 31, 2006 due primarily to the repayment of the revolving line of credit as a result of the receipt of customer advances.

The company reported that earnings per share decreased 11.5 percent to $1.23 per share for the first six months of fiscal 2007 on sales of $2.7 billion and net income of $92.1 million compared to $1.39 per share for the first six months of fiscal 2006 on sales of $1.6 billion and net income of $102.9 million. The JLG acquisition contributed significantly to both the increase in sales and decrease in net income compared to the prior year. Due to the impact of certain purchase accounting adjustments and the closing of the JLG acquisition during the seasonally slow holiday period, the acquisition of JLG was dilutive to EPS for the first six months of fiscal 2007 by 15 cents per share. Lower defense sales and operating income, due to an adverse truck product mix and lower parts and service sales, also contributed to the decline in EPS for the first half of fiscal 2007.

Operating income increased 31 percent to $218.4 million, or 8.2 percent of sales, in the first six months of fiscal 2007 compared to $166.7 million, or 10.2 percent of sales, in the first six months of fiscal 2006. The increase in operating income compared to the prior year was driven primarily by the JLG acquisition.

The company reaffirmed its estimated range of fiscal 2007 earnings per share to be between $3.15 and $3.25 per share compared to $2.76 per share in fiscal 2006. This estimate range reflects the company’s better than anticipated financial performance during the second quarter of fiscal 2007, and that the company now expects $50 million of lower defense parts and service sales in the second half of fiscal 2007 as a service contract was awarded to the company later than anticipated. The estimate range also recognizes the challenges the company expects to face throughout the balance of fiscal 2007.

The company expects its earnings per share in the third quarter of fiscal 2007 to be between 90 cents and 95 cents per share compared to 72 cents per share in the third quarter of fiscal 2006 due to a shift in defense sales from the first to the second half of the fiscal year, and as JLG is expected to be 20 cents to 25 cents per share accretive to earnings in the third quarter.

In addition, Oshkosh Truck Corp.’s Board of Directors declared a quarterly dividend of 10 cents per share of common stock. The dividend, unchanged from the immediately preceding quarter, will be payable May 25 to shareholders of record as of May 17.

For more information about Oshkosh Truck Corporation, go to: http://www.oshkoshtruckcorporation.com.