U.S. Department of Defense Recognizes Oshkosh Defense for FMTV Engineering Achievements
Oshkosh selected for the 2013 Value Engineering Achievement Award
OSHKOSH, Wis. (Feb. 18, 2014) — The U.S. Department of Defense has recognized Oshkosh Defense, a division of Oshkosh Corporation (NYSE: OSK), with the 2013 Value Engineering Achievement Award for setting record levels of quality and cost savings for the U.S. Army’s Family of Medium Tactical Vehicles (FMTV) program. The award honors organizations that have significantly reduced the product life-cycle costs while improving performance and reliability.
The U.S. Army TACOM Life Cycle Management Command nominated Oshkosh for the award based on the Company’s engineering improvements that led to $10.7 million in cost reductions for the FMTV program. Since being awarded the FMTV contract, Oshkosh has leveraged its engineering expertise, supplier network and lean manufacturing capabilities to improve FMTV quality and reduce costs. These efforts have provided soldiers with more reliable and effective equipment while saving U.S. taxpayers upwards of $2 billion over the life of the FMTV contract. Since awarded to Oshkosh, the FMTV program has set quality and unit delivery records.
“This award recognizes our engineering, design and analysis capabilities, which are key elements of our continuous improvement initiatives that span all product platforms at Oshkosh,” said John Bryant, senior vice president of Defense Programs for Oshkosh Defense. “We are proud to consistently deliver military vehicles with industry-leading quality. From product concept through full-rate production, our entire organization is designed to produce the highest quality and best value to provide the lowest program life-cycle costs. Beyond FMTV, future programs including the Joint Light Tactical Vehicle (JLTV) will continue to benefit from our proven capabilities.”
The success of the FMTV program represents the tangible benefits of the Oshkosh Operating System and a global philosophy of continuous improvement across the Company. Oshkosh’s lean-based, flexible assembly lines can build a multitude of vehicle platforms and variants at any given time and at any volume. An enterprise-wide supplier network enables Oshkosh to leverage economies of scale across its military, commercial and industrial fleets.
Oshkosh was honored for multiple engineering improvements made to the FMTV. Oshkosh extensively tested new components and vehicle design changes to ensure they met or exceeded existing standards.
The FMTV program supports the U.S. Army and National Guard at home and abroad in tactical and combat operations, relief efforts, and unit resupply missions. The FMTV is a series of 17 models and 23 configurations ranging from 2.5-ton to 10-ton payloads. The vehicles feature crew-protecting armor and advanced technologies to provide the capability, versatility, mobility and protection to move troops and supplies, recover vehicles and weapon systems, or haul equipment wherever the mission requires.
About Oshkosh Defense
Oshkosh Defense is a leading provider of tactical wheeled vehicles and life cycle sustainment services. For more than 90 years, 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.
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 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®, Jerr-Dan®, Frontline™, 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, please visit to 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, especially with the current outlook for U.S. and European economic recoveries; the strength of emerging market growth and projected adoption rate of work at height machinery; the expected level and timing of 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, including the Company’s ability to successfully manage the cost reductions required as a result of the significant projected decrease in sales levels in the defense segment; the Company’s ability to win a U.S. Joint Light Tactical Vehicle production contract award; 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 consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; the duration of the ongoing 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; 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 foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; 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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