Carl Icahn delivered the second presentation today after the board of Oshkosh claimed against Icahn’s presentation yesterday. Oshkosh claimed that they have low SGA (Selling, General and Administrative Expense) margins regarding Icahn’s blame for the company’s poor performance. Also the management has taken “decisive action” and will only reaffirm business model rather than do a “comprehensive review”. Oshkosh also accused Icahn’s slate for lacking experience in the industry.
Icahn struck back through his presentation today, saying that SGA margins do not lead to shareholders’ return. When compared to its peers, Oshkosh got the lowest EBIT, EPS growth and shareholder return.
Icahn was quite unhappy about Oshkosh’s business model reaffirmation. “How did this reaffirmation help shareholders?” asked Icahn, “the only beneficiary is the management team who has allegedly been reaffirmed”.
Icahn also controverted by listing eight key skills regarding Oshkosh’s accusation against his slate. These eight key skills include International business, Specialty Vehicle, Fire Apparatus Manufacturing, Commercial Vehicle Manufacturing, Developing M&A Strategies, Business turnaround, Building strong management teams, and Strong Financial/Investing. Icahn believes his slate has all the skills while none of the Oshkosh board members has substantial experiences in these areas.