Oshkosh shares share plummet on outlook

In extremely heavy afternoon trading, Oshkosh shares plummeted $9.76, or 29 percent, to $23.75, after dropping as low as $23.70 earlier and passing its previous 52-week low of $33.34 by nearly $10.

Oshkosh said earlier Thursday it expects to report a loss of $1.22 to $1.32 per share in the third quarter, down from its previous prediction of a profit of $1.40 per share to $1.50 per share.

Analysts polled by Thomson Financial expected profit of $1.47 per share.

Oshkosh said it estimates it will take a $175 million, or $2.32 per share, goodwill impairment charge to lower the value of its European refuse collection vehicle manufacturer, Geesink Norba Group.

The company also said it is being hurt by lower-than-expected sales in North America and Europe, driven by softness in nonresidential construction a weak overall economy and rising raw material and fuel costs.

"We would not be buyers of Oshkosh on weakness this morning as the downturn in key markets is still in the early stages as are pressures from rising raw materials," Goldman Sachs' Terry Darling, who rated the company at "Neutral," wrote in a note to investors.

"Oshkosh also has above average financial leverage."