OSHKOSH, Wis. (June 14, 2010) — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), has received a two awards valued at $173 million from the U.S. Army TACOM Life Cycle Management Command (LCMC) for more than 600 new and recapitalized Heavy Expanded Mobility Tactical Trucks (HEMTT).
Oshkosh has the capacity and production expertise to remanufacture and recapitalize heavily used vehicles back to like-new condition, offering significant cost savings to the government and taxpayer. The vehicles are returned to Oshkosh, stripped to their frame rails and completely rebuilt, and upgraded to the next-generation A4 configuration if needed.
“We leverage our world-class operations to supply recapitalized vehicles that are as advanced, reliable and high-performing as our new vehicles, but at a reduced cost for our military customers,” said Mike Ivy, vice president and general manager of Army Programs for Oshkosh Defense. “These vehicles undergo the same tests and inspections as new vehicles, and have the same bumper-to-bumper warranty, before being supplied to our Warfighters.”
Under one award, valued at more than $138 million, Oshkosh will produce and deliver more than 480 M983A4 HEMTT Light Equipment Transporters (LET) and one M1120A4 HEMTT Load Handling System (LHS). Production and delivery of these vehicles is expected to begin in October 2010 and be completed in August 2011.
For the second award, valued at more than $34 million, Oshkosh will recapitalize and deliver 140 HEMTT A4 LHS and cargo truck variants. Work for this award will run June 2010 through March 2011.
The Oshkosh® HEMTT is the backbone for the U.S. Army’s logistics fleet. HEMTT LETs support soldiers with the transportation of light equipment in challenging environments and as part of the Stryker Recovery System. The HEMTT LHS uses the Oshkosh-produced Multilift load handling system to lift and transport payloads of up to 13 tons. The HEMTT cargo truck is used to haul equipment and supplies.
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 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 Corp. 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.
Forward-Looking Statements
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 planned decrease in M-ATV production rates; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and tight credit markets; the duration of the global recession, 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 procurement of products and services and funding thereof; risks related to reductions in government expenditures, the potential for the government to competitively bid the Company’s Army and Marine Corps contracts, the startup of the Family of Medium Tactical Vehicles contract and the uncertainty of government contracts generally; the consequences of financial leverage associated with the JLG acquisition, which could limit the Company’s ability to pursue various opportunities; risks related to the collectability of receivables during a recession, particularly for those businesses with exposure to construction markets; risks related to production delays as a result of the economy’s impact on the Company’s suppliers; the potential for commodity costs to rise sharply, including in a future economic recovery; risks associated with international operations and sales, including foreign currency fluctuations; and the potential for increased costs relating to compliance with changes in laws and regulations. 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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