Oshkosh Corporation Announces Expansion and Acceleration of Share Repurchase Program
Oshkosh Corporation (NYSE: OSK), a leading manufacturer of specialty vehicles and vehicle bodies, today announced that it plans to repurchase up to $300 million of shares of Oshkosh common stock over the next 12 to 18 months, with at least $75 million to be repurchased over the next three months. In conjunction with the $300 million targeted share repurchases, the Oshkosh Board of Directors has increased the number of shares authorized for repurchase to 11 million, or approximately 12% of the Company's outstanding shares as of September 30, 2012, replacing and expanding the Company's prior share repurchase program that was authorized in July 2012. Oshkosh expects to fund the share repurchases through a combination of cash on hand and expected cash flow from operations.
Charles L. Szews, Oshkosh Corporation chief executive officer, commented, “Today's announcement is a result of the success and momentum of our MOVE strategy, our efforts to strengthen the Company's balance sheet and the Board's ongoing commitment to delivering value to all Oshkosh shareholders. The Board's expansion and acceleration of our share repurchase efforts highlights our confidence in the Company's future growth and cash flow generation potential.”
The Company noted that, since July 2012, it has repurchased approximately 550,000 shares for an aggregate value of approximately $13.4 million.
Under Oshkosh's share repurchase program, the Company's common stock may be purchased through a combination of a 10b5-1 automatic trading plan and discretionary purchases on the open market, block trades, accelerated share repurchases, privately negotiated transactions or otherwise in accordance with applicable securities laws. The number of shares purchased and the timing of the purchases will depend on a number of factors, including share price, trading volume and general market conditions, as well as on working capital requirements, general business conditions and other factors, including alternative investment opportunities. The share repurchase program may be suspended, modified or discontinued at any time, subject to the parameters of any 10b5-1 automatic trading plan that the Company may implement.
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