Canadian Government Selects Oshkosh Defense and General Dynamics Land Systems-Canada Team to Pursue MSVS Program
OSHKOSH, Wis. & LONDON, Ontario (March 9, 2011) — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), together with General Dynamics Land Systems-Canada, has been selected to compete for the Canadian Medium Support Vehicle System (MSVS) program. The Canadian Department of National Defence (DND) selected Oshkosh to proceed following the solicitation of interest and qualifications.
“Oshkosh is pleased to qualify for the Canadian MSVS program – a program that is well suited to our team’s strengths in military vehicle and integrated systems design, as well as life-cycle sustainment,” said Serge Buchakjian, senior vice president and general manager of International Programs for Oshkosh Defense. “The foundation of our MSVS program strategy is expanding Oshkosh operations and workforce in Canada, while providing the Department of National Defence with the very best long-term solution available.”
Oshkosh Defense has teamed with General Dynamics Land Systems-Canada for the Standard Military Pattern (SMP) portion of the MSVS program, which will replace the Medium Logistics Vehicles, Wheeled (MLVW) fleet. The companies also are teamed for the Tactical Armoured Patrol Vehicle (TAPV) program, which will replace the Armoured Patrol Vehicle (APV) and the Coyote reconnaissance vehicle. The team unveiled a TAPV prototype in February.
The team continues to align its proposal to Canadian Government requirements for industrial and regional benefits. In February, the team announced that London Machinery, Inc. (LMI), an Oshkosh Corporation company, is set to provide in-country manufacturing for the team. The new facility in London, Ontario was designed and built with capacity for future programs. It fosters an experienced workforce to support the TAPV and MSVS programs, as well as a broad range of commercial and specialty vehicle programs.
General Dynamics Land Systems-Canada will provide systems integration and testing support for the vehicles, as well as the complete spectrum of in-country sustainment support.
Oshkosh will serve as the prime contractor for both MSVS and TAPV programs, and will leverage existing Oshkosh vehicle platforms and technologies for its MSVS proposal submissions, including the Heavy Expanded Mobility Tactical Truck (HEMTT), Family of Medium Tactical Vehicles (FMTV), and the Medium Tactical Vehicle Replacement (MTVR). Oshkosh Defense uses the services of Valley Associates to provide Canadian-based marketing and business development.
About London Machinery
London Machinery Inc., an Oshkosh Corporation company is a leading North American manufacturer of concrete mixer trucks. Products include Standard mixers, High-Performance mixers and Trailer mixers. In addition, London is Canada's exclusive sales and support source for McNeilus® refuse trucks, CON-E-CO® batch plants and Oshkosh® S-Series™ trucks. To learn more about London, visit www.lmi.ca.
About Oshkosh Defense
Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.
About General Dynamics Land Systems-Canada
General Dynamics Land Systems-Canada, located in London, Ontario, Canada, is a business unit of General Dynamics Land Systems of Sterling Heights, Mich. For 34 years, more than 2,200 highly skilled technical employees have designed, manufactured, delivered and supported to global customers a unique family of light armoured vehicles (LAV). More information on the company is available at www.gdlscanada.com. General Dynamics Land Systems is a business unit of General Dynamics (NYSE: GD). More information about General Dynamics is available at www.gd.com.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, visit www.oshkoshcorporation.com.
®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.
This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the impact on revenues and margins of the decrease in M-ATV production rates; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during periods of global economic weakness and tight credit markets; the Company’s ability to produce vehicles under the FMTV contract at targeted margins; the duration of the ongoing global economic weakness, which could lead to additional impairment charges related to many of the Company’s intangible assets and/or a slower recovery in the Company’s cyclical businesses than equity market expectations; the expected level and timing of U.S. Department of Defense (DoD) procurement of products and services and funding thereof, especially in an environment when the U.S. government is operating under a Continuing Resolution budget action; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the potential for the U.S. government to competitively bid the Company’s Army and Marine Corps contracts; the consequences of financial leverage, which could limit the Company’s ability to pursue various opportunities; the potential for commodity and other raw material costs to rise sharply, particularly in a future economic recovery; risks related to costs and charges as a result of facilities consolidation and alignment, including that anticipated cost savings may not be achieved; risks related to the collectability of receivables, particularly for those businesses with exposure to construction markets; the cost of any warranty campaigns related to the Company’s products; risks related to production delays arising from supplier quality or production issues; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; risks related to work stoppages and other labor matters; the potential for disruptions or cost overruns in the Company’s global enterprise system implementation; the potential for increased costs relating to compliance with changes in laws and regulations; and risks related to disruptions in the Company’s distribution networks. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this press release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.
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