Oshkosh Defense Awarded $41 Million for M-ATV Protection Kits
OSHKOSH, Wis. — March 29, 2010 — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), has received an order valued at more than $41 million from the TACOM Life Cycle Management Command (LCMC) to supply more than 1,000 add-on rocket-propelled grenade (RPG) protection kits for the MRAP All-Terrain Vehicle (M-ATV). Timing for the work is expected to be completed by September 2010 and installation will occur in theater.
“The M-ATV provides exceptional protection capabilities for our Armed Forces in Afghanistan,” said Kenneth G. Juergens, Oshkosh Corporation vice president and general manager, Joint Programs, Defense. “These add-on RPG kits are being delivered to further bolster the security of our men and women in uniform and ensure that they continue to have the best protection available as they carry out their missions. We are committed to providing a robust aftermarket parts support program to meet our Warfighters’ needs in the field.”
Delivery of the RPG kits is one element of the complete spectrum of service and support Oshkosh Defense provides for the M-ATV fleet in the Afghan theater. The company also deploys in-theater field service representatives (FSR). Oshkosh FSRs operate service facilities at forward operating bases that require additional training or more support than internal assets can provide.
The Oshkosh M-ATV features the survivability and off-road mobility capabilities needed to operate in places like Afghanistan. To date, Oshkosh has received awards valued at more than $4.75 billion for 8,079 M-ATVs, as well as spare parts kits, upgrade kits and aftermarket support. Oshkosh received the M-ATV contract award and its first delivery order in June 2009. The company quickly ramped up manufacturing to unprecedented levels, producing more than 1,000 vehicles per month as of December 2009.
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 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, log on to 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 risks related to sustaining the required rate of production for the M-ATV contract and the amount, if any, of additional orders for M-ATVs that the Company may receive; 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; 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 contracts 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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