OSHKOSH, Wis. — April 27, 2010 — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), has received two awards valued at more than $79 million from the TACOM Life Cycle Management Command (LCMC) to supply more than 1,750 add-on rocket-propelled grenade (RPG) protection kits and more than 1,000 kits to support remote weapon systems for the MRAP All-Terrain Vehicle (M-ATV). Work for both orders is expected to be completed in September 2010.
The award for RPG protection kits is valued at more than $68 million and installation will be completed in-theater. The award for remote weapon system kits is valued at more than $11 million. Oshkosh will install these kits on the production lines and the Space and Naval Warfare Systems Command (SPAWAR) will install the kits on previously delivered vehicles. Remote weapon systems allow fighting crews to operate from within the vehicle, even when on the move.
“The M-ATV is designed to accept these kits and other add-on packages and still deliver exceptional survivability and performance capabilities for operations in Afghanistan,” said Ken Juergens, Oshkosh Defense vice president and general manager, Joint Programs. “We are committed to working with our Armed Forces to ensure they have the most advanced, well-protected and mobile vehicles needed to carry out missions in challenging environments.”
The Oshkosh® M-ATV uses the company’s patented TAK-4® independent suspension system. The proven technology delivers superior off-road mobility and allows the M-ATV to accept heavier armor, such as add-on explosively formed penetrator (EFP) armor packages, while maintaining a full payload of 4,000 pounds. Additionally, the vehicle’s bolt-on armor permits in-theater upgrades to meet mission demands and rapid repair of armor panels for quick turnaround times.
To date, Oshkosh has received awards valued at $4.9 billion for 8,079 M-ATVs, as well as spare parts kits, upgrade kits and aftermarket support. Oshkosh also has leaned forward using its own time and resources to create an M-ATV family of vehicles with the ambulance and utility variants. The variants, built around the same highly mobile, well-protected platform, have the potential to deliver critical casualty care and resupply services in harsh environments like those found in Afghanistan.
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 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.
