Oshkosh Defense Unveils TAPV Prototype and Plans for Canadian Operations to Support Military Vehicle Programs
OSHKOSH, Wis. & LONDON, Ontario (Feb. 15, 2011) — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), today unveiled its prototype for Canada’s Tactical Armoured Patrol Vehicle (TAPV) program, as well as the company’s plans to work with its subsidiary, London Machinery, Inc. (LMI), to leverage that company’s new facility in London, Ontario, in pursuit of Canadian Department of National Defence (DND) vehicle programs.
LMI, the leading manufacturer of concrete mixer trucks in London, Ontario, provides local advanced manufacturing capabilities and a highly skilled workforce to the Oshkosh Defense and General Dynamics Land Systems-Canada team’s bids for the TAPV and Medium Support Vehicle System (MSVS) programs.
“Our team has thoughtfully reviewed draft RFPs for the TAPV and MSVS programs, and we are aligning our operations to DND requirements for highly-protected vehicles and long-term maintenance and support for the vehicles,” said Andy Hove, Oshkosh Corporation executive vice president and president, Oshkosh Defense. “Our plans will deliver significant value to DND by leveraging proven technology and support capabilities while providing industrial and regional benefits to contribute to the Canadian economy.”
LMI, an Oshkosh Corporation subsidiary, is set to provide in-country manufacturing capabilities for both the TAPV and MSVS programs. The 140,000 square-foot LMI facility applies the latest manufacturing methods and quality processes to produce concrete mixer trucks for customers throughout North and South America. The LMI operation was designed with capacity for future programs and fosters an experienced workforce to support the TAPV and MSVS programs as well as a broad range of commercial and specialty vehicle programs.
“The Canadian content provided by LMI is in addition to the team’s commitment to perform the complete range of extensive systems integration and testing support for the vehicles at our company’s London, Ontario facility,” said Mark Roualet, president, General Dynamics Land Systems. “General Dynamics Land Systems-Canada also will provide in-country sustainment support.”
Oshkosh Defense and General Dynamics Land Systems-Canada teamed for the TAPV program, which will replace the Armoured Patrol Vehicle (APV) and the Coyote reconnaissance vehicle. The companies also are teamed up for the MSVS program, which will replace the Medium Logistics Vehicles, Wheeled (MLVW) fleet. The new programs will enhance the capabilities of the Canadian Forces with protected, high-performance vehicle fleets.
Oshkosh will serve as the prime contractor for both programs and will leverage proven vehicle platforms and advanced technologies for proposal submissions, including the MRAP All-Terrain Vehicle (M-ATV) and the Medium Tactical Vehicle Replacement (MTVR). Oshkosh Defense uses the services of Valley Associates to provide Canadian-based marketing and business development.
“From the start of our collaboration, the Oshkosh-General Dynamics Land Systems-Canada team has been dedicated to creating good jobs and lasting value to the Canadian economy,” Hove said. “We are continuing to demonstrate that dedication through investment commitments in London Machinery.”
The production work provided by LMI is in addition to the previously announced work scope being performed by General Dynamics Land Systems-Canada. On March 22, 2010, the team announced that General Dynamics will provide remote weapons system (RWS), command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) integration and testing support for the vehicle as well as extensive logistics, training and technical manuals.
About London Machinery
London Machinery Inc., a subsidiary of Oshkosh Corporation [NYSE: OSK], 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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