OSHKOSH, Wis. — July 8, 2008 — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), has received several recent contract modifications for work both at home and abroad through the company’s Integrated Logistics Support (ILS) program, which provides aftermarket parts and services to customers worldwide.
The most recent contract modification is with the U.S. Marine Corps System Command (MARCORSYSCOM) for the installation of reducible-height armor protection kits (APK) on 480 of Oshkosh’s Medium Tactical Vehicle Replacements (MTVR). The contract modification, worth about $10 million, calls for the APKs to be installed on MTVR cargo, dump, tractor and wrecker variants, with the majority of the work taking place in Jacksonville, Fla.
“The Oshkosh Defense ILS program allows us to efficiently meet the current and wide-ranging needs of our military partners,” said John Stoddart, Oshkosh Corporation executive vice president and president, Defense. “As developments arise and conditions on the field change, our ILS program allows for the continual evolution of our services and vehicles to meet today’s challenges.”
The reducible-height armor was designed to meet military requirements of transporting armored MTVRs at a reduced height of 8 feet 2 inches. Work from the contract modification is expected to be completed by June 30, 2009.
In May, Oshkosh signed two additional MTVR contract modifications with MARCORSYSCOM. The first contract modification, worth about $8 million, is for the production of 74 APKs, while the second, worth almost $10 million, is for the installation of APKs and other upgrades in Iraq.
The upgrades, which Oshkosh began performing in 2007, are applied to armor that Oshkosh first installed on its MTVRs in 2005 in support of Operation Iraqi Freedom. The upgrades are expected to be performed through January 2009, with Plasan providing the armor portions of the kits. The work is taking place at three Iraqi bases.
Also in May, Oshkosh received a contract modification from the U.S. Army Tank-automotive and Armaments Command (TACOM) allowing the company to continue servicing its Family of Heavy Tactical Vehicles (FHTV), which will be received from Army units under the Theater Provided Equipment Refurbishment (TPER) program.
The vehicle refurbishment work will be completed on 515 vehicles from July through April 2009 at an Oshkosh facility in Kuwait. The modification is to a four-year existing contract and has a potential value of $23.3 million.
Through the program, the military delivers the vehicles from the field to Oshkosh’s facility for extensive refurbishment. The scope of work includes scheduled and unscheduled services such as inspections, repairs, replacements, adjustments and cleanings. The vehicles are quickly returned to active units once work is completed.
Since the start of Operation Iraqi Freedom, Oshkosh has repaired and armored vehicles in the Southwest Asia theater of operations, and Oshkosh field service representatives are currently deployed throughout the Middle East.
Oshkosh’s MTVR is an all-terrain, multipurpose logistics vehicle used by the Marines. It comes in several variants for the transportation of troops, materials or equipment, and it features an off-road 7.1-ton payload capacity and an on-road 15-ton payload capacity. Oshkosh’s FHTV includes the Palletized Load System (PLS), Heavy Expanded Mobility Tactical Truck (HEMTT) and Heavy Equipment Transporter (HET) vehicles, as well as HET trailers.
Oshkosh Defense, a division of Oshkosh Corporation leads the way in military trucks and armored wheeled vehicles. Since 1917, Oshkosh has continuously developed new products and technologies that make military jobs easier, safer and more efficient. Oshkosh Defense’s comprehensive product lines are recognized for superior performance and reliability, particularly in off-road environments. For more information, visit http://oshkoshdefense.com.
About Oshkosh Corp.
Oshkosh Corp. 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®, BAI®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, Geesink™, Norba™, Kiggen™, 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.
Forward-Looking Statements
This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital spending and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “expects,” “intends,” “estimates,” “anticipates,” or “believes” and similar expressions 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 that 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 during a recession, which many believe the U.S. economy has already entered; risks related to reductions in government expenditures and the uncertainty of government contracts; and the Company’s ability to turnaround its Geesink Norba Group business. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission.
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