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Oshkosh Corporation Awarded $1.05 Billion Delivery Order to Supply M-ATV to Soldiers, Marines

OSHKOSH, Wis.--(BUSINESS WIRE)--Jun. 30, 2009-- The U.S. Department of Defense (DoD) announced today it has selected Oshkosh Corporation (NYSE:OSK) to supply MRAP All Terrain Vehicles (M-ATV) for its fighting forces. Oshkosh has received an initial delivery order from the U.S. Army Tank-automotive and Armaments Command (TACOM) Life Cycle Management Command (LCMC) for 2,244 M-ATVs valued at $1.05 billion, following months of government testing on multiple production-ready vehicles.

“We are proud that Oshkosh was chosen to provide its M-ATV offering to the U.S. Armed Forces. Our M-ATV design combines the crew protection warfighters have come to expect in MRAP vehicles with the extreme mobility and durability needed to negotiate Afghanistan’s mountainous off-road terrain,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “Due to the urgent need of our Armed Forces for a survivable and highly mobile vehicle, our Corporation’s number one priority is meeting the Department’s accelerated delivery schedule of the Oshkosh M-ATV. Oshkosh Corporation will put whatever resources are necessary to meet or exceed the government’s delivery schedule. While we believe we can meet or exceed the government’s current delivery requirements, we intend to enter into discussions with other manufacturers to determine if they can assist in the production of the Oshkosh M-ATV.”

Bohn went on to say, “As we begin supplying our advanced, high-performance vehicles, our full-service aftermarket support network will be available with replacement parts, technical support, and repair or refurbishment services. If demands for technology or component upgrades should arise, our team is ready to deliver.”

Andy Hove, Oshkosh Corporation executive vice president and president, Defense said, “Much has already been done to ensure we can meet the government’s delivery schedule. In recognition of the urgent need, we began daily production of Oshkosh M-ATVs on our flexible manufacturing line a few weeks ago. We and our suppliers have already made significant investments in materials and are well positioned to accelerate our manufacturing capabilities.”

The Oshkosh Defense investments, planning and engineering activities, and production of M-ATVs in advance of this award will allow for accelerated delivery of the Oshkosh M-ATV, with initial vehicles available to TACOM LCMC in July.

In order to achieve the off-road mobility that soldiers and Marines need in Afghanistan, Oshkosh integrated its TAK-4® independent suspension system onto the vehicle. As further testament to the government’s confidence in this suspension system, the company recently received a supply order to equip more than 1,500 legacy MRAPs with the TAK-4 system and continues to work with the Army to evaluate using the system on additional legacy MRAP models. The TAK-4 suspension system is used on more than 10,000 Medium Tactical Vehicle Replacements (MTVR) supplied to the Marines and Seabees, as well as on the Marines’ Logistics Vehicle System Replacement (LVSR) and the Army’s next-generation Palletized Load System (PLS).

Oshkosh Defense teamed with Plasan North America for the M-ATV armor system to provide an advanced armor solution. Plasan also developed the armor system used on more than 5,000 legacy MRAPs and thousands of Oshkosh Armored Cab MTVRs already in theater.

Oshkosh performed more than 7,500 miles of independent off-road testing to identify possible enhancements to the vehicle so it would meet or surpass the performance requirements in the rugged terrain in Afghanistan.

Photo Caption: The Oshkosh M-ATV offers superior mobility and survivability for the U.S. Armed Forces

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®, 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.

®, ™ 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 consequences of financial leverage associated with the JLG acquisition, including the level of the Company’s borrowing costs, the increased interest rates the Company would face if it experienced a deterioration or downgrade in credit agency ratings and the Company’s ability to maintain compliance with its financial covenants under its credit agreement; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and credit crisis; the duration of the global recession and its adverse impact on the Company’s share price, 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 and the uncertainty of government contracts; the potential for commodity costs to rise sharply in a future economic recovery; risks associated with international operations and sales, including foreign currency fluctuations; the Company’s ability to close the sale of its Geesink business on its expected timetable; risks related to the collectability of receivables during a recession, particularly for those businesses with exposure to construction markets; 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.

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Source: Oshkosh Corporation

Oshkosh Corporation
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Patrick Davidson
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Ann Stawski
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