OSHKOSH, Wis. (AP) -- Vehicle manufacturer Oshkosh Corp. said Thursday that its second-quarter net income dropped as sales of its MRAP-All Terrain Vehicle fell by $884.1 million.
Shares fell after the company reported a steep decline in its defense contracting business amid budget cuts in Washington.
The company's net income for the quarter ended June 30 was $68.4 million, or 75 cents per share, compared to $211.2 million, or $2.31 per share, during the same period last year.
Revenue for the quarter was $2.02 billion, down from $2.44 billion during the prior-year period.
The results were just above analyst expectations for net income of 74 cents per share on revenue of $1.89 billion, according to FactSet.
The company said lower sales of its MRAP vehicle were expected under the contract to produce it. Overall, sales in the defense segment fell by almost 35 percent during the quarter to $1.11 billion, when compared to the same period last year.
CEO Charles Szews said defense spending is likely to remain weak, and the company will try to compensate by boosting sales of other vehicles.
"As part of this strategy, we plan to drive through the pending U.S. defense spending decline by capturing the full benefit of the economic recovery expected in our non-defense markets, continuing to pursue market share gains and expanding into emerging markets," Szews said in a statement.
Oshkosh makes a range of specialty products, including defense, emergency and commercial vehicles.
Shares of Oshkosh fell $3.84, or 13.3 percent, to close at $24.96.