Aug. 2--Oshkosh Corp. shares fell 11 percent after the specialty-vehicle maker posted a third-quarter loss and gave an earnings forecast below analysts' estimates.

The company said weakness in key U.S. markets, and an impairment charge for a European division, contributed to the loss of $84.3 million, or $1.14 per share, for the third quarter that ended June 30.

In late June, Oshkosh warned that it expected to report a loss of $1.22 to $1.32 per share, citing a slowing economy and weakness in commercial construction markets.

The company also took a previously announced pretax charge of $175.2 million to cover reduced value of the Geesink Norba Group, its European trash-collection vehicle business.

Without the impairment charges, Oshkosh would have earned $1.19 per share in the latest period, according to the company. Analysts, who usually exclude charges from their calculations, had forecast earnings of $1.05 per share, according to a survey by Thomson Financial.

Chairman and Chief Executive Officer Robert G. Bohn called the results "solid" amid challenging markets, including low U.S. demand for concrete mixers. He said exports of concrete mixers increased, and the company had strong military truck sales fueled by the wars in Iraq and Afghanistan.

Defense business revenue jumped 30 percent to $489.5 million as the result of an increase in sales of large tactical vehicles and armor kits.

"Our defense business is solid, and we expect to grow the top line in 2009. We expect this business because we have contracts, a healthy backlog and a recently signed supplemental spending bill that funds this business until fiscal 2010," Bohn said in a conference call with analysts.

The CEO said weak construction activity in North America and parts of Western Europe would limit sales in the July-to-September quarter.

"Many, many businesses are facing economic headwinds like here at Oshkosh," Bohn said.

The company now expects to post a fourth-quarter profit of 50 cents to 65 cents a share. Analysts were expecting 93 cents, according to Reuters Estimates.

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Story Source: The Milwaukee Journal Sentinel