OSHKOSH CORPORATION RESUMES WORK ON JOINT LIGHT TACTICAL VEHICLE PRODUCTION CONTRACT
U.S. Army Lifts Stop Work Order on $6.7 Billion JLTV Production Contract
OSHKOSH, Wis. (December 15, 2015) –The U.S. Army Tank-automotive and Armaments Command (TACOM) Life Cycle Management Command (LCMC) has directed Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) company, to resume work on the Joint Light Tactical Vehicle (JLTV) production contract. The JLTV program fills a critical capability gap for the U.S. Army and Marine Corps by replacing a large portion of the legacy HMMWV fleet with a light vehicle that provides unprecedented protection, off-road mobility and transportability.
“We are pleased that the JLTV production contract, awarded to Oshkosh in August, is now moving forward to deliver the world’s most capable light tactical vehicle,” said U.S. Army Major General (Retired) John M. Urias, executive vice president of Oshkosh Corporation and president of Oshkosh Defense. “Our JLTV is designed to safely transport Soldiers and Marines as they perform their missions ‘outside the wire’ – providing unprecedented off-road speed and mobility on future battlefields that could be virtually anywhere in the world.”
The U.S. Government Accountability Office (GAO) dismissed Lockheed Martin’s protest earlier today based on Lockheed’s notice that it intends to file a protest in the U.S. Court of Federal Claims. Shortly thereafter, the U.S. Army lifted the stop work order and instructed Oshkosh to resume performance of the JLTV contract. According to the JLTV production contract, Oshkosh will begin delivering vehicles within the next 10 months, reaching an expected total volume of nearly 17,000 vehicles, as well as kits and sustainment services over an eight-year period.
“The Army conducted a thorough, methodical procurement including exhaustive testing and evaluation to ensure our troops get the best vehicle,” said Urias. “The Oshkosh team and our employees will immediately resume work to deliver JLTVs to our Soldiers and Marines.
“The JLTV program fills a critical gap in the U.S. military’s current tactical vehicle line-up,” said Urias. “The Oshkosh JLTV will give our troops new levels of payload, performance and protection in a platform that was engineered to evolve as new technologies emerge and our adversaries’ tactics change.”
In designing its JLTV, Oshkosh leveraged its extensive experience producing and sustaining more than 150,000 heavy, medium and protected MRAP vehicles for the U.S. and its allies. The JLTV Family of Vehicles is comprised of two seat and four seat variants, as well as a companion trailer (JLTV-T). The two seat variant has one base vehicle platform, the Utility (JLTV-UTL). The four seat variant has two base vehicle platforms, the General Purpose (JLTV-GP) and the Close Combat Weapons Carrier (JLTV-CCWC).
About Oshkosh Defense
Oshkosh Defense is a leading provider of tactical wheeled vehicles and life cycle sustainment services. For decades Oshkosh has been mobilizing military and security forces around the globe by offering a full portfolio of heavy, medium, light and highly protected military vehicles to support our customers’ missions. In addition, Oshkosh offers advanced technologies and vehicle components such as TAK-4® independent suspension systems, TerraMax® unmanned ground vehicle solutions, Command Zone™ integrated control and diagnostics system, and ProPulse® diesel electric and on-board vehicle power solutions, to provide our customers with a technical edge as they fulfill their missions. Every Oshkosh vehicle is backed by a team of defense industry experts and complete range of sustainment and training services to optimize fleet readiness and performance. Oshkosh Defense, LLC is an Oshkosh Corporation company [NYSE: OSK].
To learn more about Oshkosh Defense, please visit us at www.oshkoshdefense.com.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of access equipment, commercial, fire & emergency, military and specialty vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Jerr-Dan®, Frontline™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide by rental companies, concrete placement and refuse collection businesses, fire & emergency departments, municipal and airport services and defense forces, where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, please 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 cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, which are particularly impacted by the strength of U.S. and European economies; the Company’s estimates of access equipment demand; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of U.S. Department of Defense (“DoD”) and international defense customer procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures, sequestration and an uncertain DoD tactical wheeled vehicle strategy; risks related to the Company’s future defense segment sales as a result of the outcome of a competitor’s protest of the JLTV production contract award to the Company; the Company’s ability to finalize an international contract for a significant quantity of M-ATVs, with the majority of the units sold in fiscal 2016; the Company’s ability to increase prices to raise margins or offset higher input costs; increasing commodity and other raw material costs, particularly in a sustained economic recovery; risks related to facilities expansion, consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; global economic uncertainty, 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 Company or equity market expectations; projected adoption rates of work at height machinery in emerging markets; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; 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 or shipment delays arising from quality or production issues; risks associated with international operations and sales, including compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity risks and costs of defending against, mitigating and responding to a data security breach; and risks related to 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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