U.S. Army Awards Bridge Contract to Oshkosh Defense for Heavy Vehicle Fleet
FHTV production and support to continue through September 2014 under extended contract
OSHKOSH, Wis. (Jan. 18, 2012) — The U.S. Army has awarded Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), a bridge contract to continue production and support of the Family of Heavy Tactical Vehicles (FHTV). Under this extended contract, the government can place orders through October 2013 and Oshkosh Defense can deliver through September 2014. The first order under the bridge contract was awarded on Dec. 21, 2011.
The Oshkosh FHTV includes the Heavy Expanded Mobility Tactical Truck (HEMTT), Heavy Equipment Transporter (HET) and Palletized Load System (PLS). Army and National Guard soldiers have relied on these vehicles in Iraq and Afghanistan, and in other missions around the world, to safely haul heavy payloads in challenging terrain and extreme conditions.
“The FHTV’s proven performance, particularly during its extensive use in two operational theaters during the last 10 years, has enabled successful logistics operations while protecting soldiers,” said Mike Ivy, vice president and general manager of Army Programs for Oshkosh Defense. “The success of the FHTV program is the result of close and continuous collaboration with our Army customer. We appreciate the opportunity to insert the latest automotive and survivability technologies into these trucks and to join soldiers, first in Iraq and now in Afghanistan, sustaining fleets in the most demanding circumstances.”
The HEMTT A4 is the backbone of the Army’s logistics and resupply fleet. It has a 13-ton payload capacity and is available in multiple variants for a wide range of operations. The PLS supports the Army’s distribution and resupply system, transporting ammunition and other critical supplies needed in battle. The HET is designed to rapidly transport battle tanks, fighting and recovery vehicles, armored vehicles, and construction equipment, as well as their crews, so they arrive in mission-ready condition.
Oshkosh has been producing heavy-payload vehicles for the Army for more than 35 years, beginning with the HET M911 in 1976. The latest configurations of the FHTV vehicles include air-conditioned and armor-ready cabs, electrical upgrades, and anti-lock braking to keep soldiers safe and on the move in severe environments. Oshkosh most recently worked with the Army to develop and begin producing underbody improvement kits for FHTV trucks. These kits provide enhanced protection against ever-evolving improvised explosive device (IED) threats.
To date, Oshkosh has produced more than 58,000 FHTV trucks and trailers for the Army. Oshkosh also has remanufactured more than 11,000 FHTV trucks, delivering the vehicles in zero-miles / zero-hours condition for significantly less than the cost of a new vehicle.
The first order under the FHTV bridge contract includes more than 20 HEMTT Light Equipment Transporters (LET), more than 10 PLS A1 trucks and more than 10 PLS A1 trailers. The order is valued at more than $11 million. Work under the order is scheduled to be completed in December 2013.
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 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.
®, TM 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 expected level and timing of DoD’s procurement of products and services and funding thereof, including the impact of the DoD’s allocation of certain tires which will restrict and delay certain FHTV sales; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during periods of global economic uncertainty, lower municipal spending 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 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; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to pass on to customers price increases to offset higher input costs; 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; the potential for increased costs relating to compliance with changes in laws and regulations; risks related to disruptions in the Company’s distribution networks; and the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. 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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