Oshkosh Corp.

Over the longer term, we expect positive momentum across all segments. Capacity expansion in China and increased replacement demand in North America will benefit the Access Equipment segment. Once trade uncertainties stabilize, we feel there is potential for the Fire&Emergency segment to have more international orders. In our view, the healthy backlog in the Defense segment benefits from multi-year contracts, and international orders are likely to keep growth at high levels. We anticipate that the Commercial segment will bounce back to full rate production across its facilities. The stable outlook on Oshkosh reflects our expectation that its operating performance will remain solid given favorable conditions in its non-cyclical end markets, a healthy backlog, and modest margin improvements driven

...Economic softness in cyclical end-markets will limit revenues in 2020. Lower customer demand and a slowdown in the timing of order placement by key equipment rental customers in the North American and Europe, Middle East, and Africa (EMEA) regions in the Access Equipment segment could limit Oshkosh's revenue growth in 2020. This is offset, however, by growth within the Asia-Pacific region in Access Equipment due to increasing product adoption and new regulatory standards. In addition, we expect the Fire & Emergency segment to remain flat due to headwinds in state and municipal demand, as well as low international orders in this segment. Over the longer term, we expect positive momentum across all segments. Capacity expansion in China and increased replacement demand in North America will benefit the Access Equipment segment. Once trade uncertainties stabilize, we feel there is potential for the Fire & Emergency segment to have more international orders. In our view, the healthy backlog...

Full Report