Oshkosh Defense to Supply New and Recapitalized Heavy Tactical Vehicles for U.S. Army
More than 10,000 military vehicles have been restored to “zero miles” condition by Oshkosh
OSHKOSH, Wis. (June 9, 2011) — Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), will deliver more than 730 trucks from the U.S. Army’s Family of Heavy Tactical Vehicles (FHTV), including new and recapitalized Heavy Expanded Mobility Tactical Truck (HEMTT) A4s and new Heavy Equipment Transporter (HET) A1s, following orders from TACOM Life Cycle Management Command (LCMC).
Oshkosh recently reached a major milestone with more than 10,000 heavy and medium-payload vehicles restored to zero-hours, zero-miles condition for the U.S. Army, National Guard and Marine Corps. Oshkosh recapitalizes and remanufactures vehicles for the U.S. military as part of the company’s extensive life-cycle support and aftermarket services program. Through recapitalization, heavily used vehicles are stripped to their frame rails and rebuilt to like-new condition.
“The restoration of more than 10,000 military-class vehicles is a significant achievement in our continuing support of the military’s fleet management strategy,” said Mike Ivy, vice president and general manager of Army Programs for Oshkosh Defense. “Oshkosh Defense has recapitalized and retrofit vehicles for more than 40 years, significantly increasing their life-span and offering great value to military customers, and equipping soldiers with the latest vehicle safety, survivability, and mobility technologies.”
To meet the latest HEMTT A4 configuration, the suspension in the recapitalized vehicle is improved and a fully air-conditioned and armor-ready cab is installed, in addition to a more powerful drivetrain. The vehicles have new components, new technology and a new “zero hours/zero miles” bumper-to-bumper warranty, at a considerable cost savings to the government. Oshkosh also has refurbished more than 2,000 heavy-payload vehicles in theater, including vehicles originally built by other manufacturers, as part of the Army’s Theater Provided Equipment Refurbishment (TPER) program.
The HEMTT A4 is the backbone of the Army’s logistics and resupply fleet, and is available in multiple variants for a wide range of operations. The Light Equipment Transporter (LET) variant is included in the orders and is equipped with durable components to provide optimal maneuverability and versatility in rugged terrain. Its anti-lock braking system, traction and air-ride suspension allow troops to navigate wherever the mission demands while transporting light-duty equipment.
The HET is designed to rapidly transport battle tanks, fighting and recovery vehicles, armored vehicles and construction equipment, as well as their crews, so they arrive in mission-ready condition. The latest Oshkosh HET A1 configuration includes increased horsepower, a six-person armor ready cab, higher capacity front suspension, electrical upgrades, and improved diagnostics and standard air conditioning.
The U.S. Army’s heavy fleet, currently in production by Oshkosh Defense, also includes the Palletized Load System (PLS). Production of the new HEMTT A4s and HETs on these awards is expected to begin in April 2012 and be completed in September 2012. Recapitalization of the HEMTT A4s began in May and is scheduled to be completed in September 2012. Together, these orders have a value of more than $252 million.
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 www.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®, 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, visit www.oshkoshcorporation.com.
®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.
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 decrease in M-ATV production rates; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during periods of global economic weakness, tight credit markets and lower municipal spending; the Company’s ability to produce vehicles under the FMTV contract at targeted margins and at required volumes to receive and sustain performance-based payments; 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 equity market expectations; the expected level and timing of 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; 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; increasing commodity and other raw material costs, particularly in a sustained economic recovery; the ability to pass on to customers price increases to offset higher input costs; risks related to costs and charges as a result of facilities consolidation and alignment, including that anticipated cost savings may not be achieved; 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 delays arising from supplier quality or production issues, especially in light of the significant recent earthquake and subsequent tsunami in Japan; risks associated with international operations and sales, including foreign currency fluctuations and compliance with the Foreign Corrupt Practices Act; risks related to work stoppages and other labor matters, especially in light of the pending contract expiration for union employees at the Company’s Oshkosh defense facilities; the potential for disruptions or cost overruns in the Company’s global enterprise system implementation; the potential for increased costs relating to compliance with changes in laws and regulations; and risks related to disruptions in the Company’s distribution networks. 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.
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