OSHKOSH, Wis. May 10, 2010 – Oshkosh Corporation (NYSE: OSK), a leading manufacturer of specialty vehicles and vehicle bodies, announced today that its Defense division has received a delivery order valued at more than $410 million from the TACOM Life Cycle Management Command (LCMC) for the production and delivery of 2,634 Family of Medium Tactical Vehicles (FMTV) trucks and trailers for the U.S. Army. This award is for deliveries scheduled between March and December 2011. To date, Oshkosh Corporation has received orders valued at more than $690 million under the five-year FMTV requirements contract.
Oshkosh Corporation utilized its own resources to lean forward before its original contract award was affirmed by the Army on February 12, 2010, enabling the company to deliver FMTV vehicles and trailers according to the Army’s original schedule. The company will begin supplying initial trucks to the Army this month for performance and durability testing. Production deliveries will begin in October 2010. All Oshkosh FMTV vehicles will include the company’s Long-Term Armor Strategy (LTAS)-compliant armor solution.
“Oshkosh Corporation’s world-class production capabilities, coupled with our independent investments in this program, will ensure vehicles are delivered without any disruption to the original timeline,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “We are closely engaged with the Army and moving forward on all necessary processes to maintain this schedule and deliver high-quality trucks and trailers to meet the Warfighters’ needs.”
The five-year, multi-billion-dollar contract calls for the production of an estimated 23,000 trucks and trailers, as well as support services and training. The FMTV is a series of 17 models and 23 variants ranging from 2.5-ton to 10-ton payloads.
Oshkosh Corporation has broken ground on a new 150,000-square-foot, state-of-the-art electrocoat (E-coat) facility in Oshkosh, Wis., to support the FMTV program, and possibly other programs. Facility start-up will begin in late summer 2010. The company also announced last month that it is expanding its Michigan office with plans to move into a new facility in Warren, Mich., and hire up to 190 new employees there to support the FMTV System Technical Support (STS) work.
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, log on to www.oshkoshcorporation.com.
®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.
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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.
