Oshkosh expects improved profit in latest quarter

The company also said it expected to report that it cut its debt during its fiscal fourth quarter, which ends Sept. 30.

Oshkosh said earnings would be at or above the higher end of its previously forecast range of 50 cents to 65 cents per share and debt would be cut to between $2.8 billion and $2.85 billion.

Analysts surveyed by Thomson Reuters forecast quarterly earnings per share of 59 cents, on average.

The company had said debt on Sept. 30 would be $2.85 billion to $2.9 billion. On Friday, however, the company said cash flow from earnings and working capital initiatives had reduced the amount.

Shares of Oshkosh jumped $1.44, or 15 percent, to $11 in morning trading.

Oshkosh is scheduled to release financial results for the quarter and the full fiscal year on Nov. 3.

Chairman and Chief Executive Robert G. Bohn said Oshkosh had cut its work force about 10 percent, lowered discretionary spending and sold excess inventory in the last several months. He said the moves "should help us to remain competitive" in the fiscal year that starts Oct. 1.

Bohn said the company's defense business should grow, helping the company generate cash and reduce debt in the new fiscal year despite "challenging market conditions."

Oshkosh said it normally doesn't announce when it expects future earnings to beat previously disclosed projections. But it made "an extraordinary exception to that policy in light of existing market conditions."