The FMTV program sets records for quality and schedule to serve Army missions at home and abroad
OSHKOSH, Wis. (Aug. 20, 2012) — The United States Army and Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), today commemorated the production of the 10,000th Oshkosh-built Family of Medium Tactical Vehicles (FMTV) truck – less than two years after Oshkosh began producing FMTVs under a contract awarded in October 2009. September 30, 2012 will mark a production milestone for Oshkosh Defense as the company will manufacture more vehicles for the FMTV Program than it has ever produced in a single fiscal year.
The U.S. Army and National Guard rely on the FMTV at home and abroad in tactical and combat operations, relief efforts and unit resupply missions. Over the life of the contract, Oshkosh will deliver upwards of $2 billion in cost savings to the Department of Defense through relatively lower priced vehicles that still offer quality and reliability improvements.
“Our number one priority is providing soldiers with very high quality vehicles that meet the Army’s needs,” said Mike Ivy, vice president and general manager of Army Programs for Oshkosh Defense. “Delivering the 10,000th vehicle within two years of starting production demonstrates Oshkosh Defense’s commitment to our nation’s defense. The FMTV program is one in a long history of programs that represent our unparalleled support to the men and women in uniform.”
Oshkosh has delivered unprecedented vehicle quality and value through its flexible assembly lines that allow the company to build different vehicles for different programs at any given time. Oshkosh also operates an enterprise-wide supplier network for multiple defense and commercial programs to provide economies of scale across its vehicle portfolio – from snow removal trucks, refuse haulers to fire apparatus and access equipment.
The Oshkosh 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. Commonality of parts of over 80 percent across chassis variants optimizes logistics efficiency and reduces operational costs. The Long-Term Armor Strategy-compliant cab and other advanced technologies give military personnel the enhanced protection they need to confidently complete their missions.
Oshkosh Defense has received orders for more than 30,000 FMTV trucks and trailers from the U.S. Army TACOM Life Cycle Management Command (LCMC). The five-year requirements contract for the production of trucks and trailers, as well as support services and training, runs through fiscal year 2014.
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 Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Jerr-Dan®, Oshkosh Specialty Vehicles, 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, visit www.oshkoshcorporation.com.
®, TM 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 cyclical nature of the Company’s access equipment, commercial and fire & emergency markets; the expected level and timing of the U.S. Department of Defense (DoD) procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures and an uncertain DoD tactical wheeled vehicle strategy; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to increase prices to offset higher input costs; risks related to facilities consolidation and alignment, including costs and charges thereof and that anticipated cost savings may not be achieved; the Company’s ability to produce vehicles under the FMTV contract at targeted margins; the duration of the ongoing global economic weakness, 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; the potential for the U.S. government to competitively bid the Company’s Army and Marine Corps contracts; the consequences of financial leverage, which could limit the Company’s ability to pursue various opportunities; 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; risks related to actions of activist shareholders; and 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. 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.
