Wednesday, July 20, 2011

DTN News - OSHKOSH DEFENSE NEWS: U.S. Army Selects Oshkosh Defense To Recapitalize Heavy Tactical Vehicles

DTN News - OSHKOSH DEFENSE NEWS: U.S. Army Selects Oshkosh Defense To Recapitalize Heavy Tactical Vehicles
(NSI News Source Info) TORONTO, Canada / OSHKOSH, Wis. - July 20, 2011: Oshkosh Defense, a division of Oshkosh Corporation (NYSE:OSK), will recapitalize 160 trucks from the U.S. Army’s Family of Heavy Tactical Vehicles (FHTV) fleet, including Heavy Expanded Mobility Tactical Truck (HEMTT) A4s and Palletized Load System (PLS) A1s, following an order from the U.S. Army TACOM Life Cycle Management Command (LCMC). Through its recapitalization program, Oshkosh will restore these vehicles to the latest configuration in zero-miles/zero-hours condition at significantly less than the cost of a new vehicle.

“Oshkosh is helping the U.S. military maximize its investments by extending vehicles’ life spans, restoring and modernizing them with the latest technologies and armor packages,” said Mike Ivy, vice president and general manager of Army Programs for Oshkosh Defense. “As trucks have become more advanced – with better protection and improved power trains and suspensions – our recapitalization program has continued providing our customer exceptional value.”

Since 1970, Oshkosh has remanufactured more than 11,000 military vehicles. In addition to recapitalizing its own vehicles, Oshkosh also upgrades vehicles originally built by other manufacturers. Oshkosh has refurbished more than 2,000 heavy-payload vehicles for the Army’s Theater Provided Equipment Refurbishment (TPER) program. The company also has upgraded more than 2,000 Mine-Resistant Ambush Protected (MRAP) vehicles produced by other manufacturers with the Oshkosh TAK-4® independent suspension system to deliver improved vehicle mobility in challenging terrain.

Recapitalization Programs

To recapitalize HEMTT A4s, the suspension is improved and a fully air-conditioned and armor-ready cab is installed, in addition to a more powerful drivetrain. The vehicles are fitted with new components, new technology and a new “zero hours/zero miles” bumper-to-bumper warranty. The HEMTT A4 is the backbone of the Army’s logistics and resupply fleet. It has a 13-ton payload capacity and is available in multiple variants for a wide range of operations. The HEMTT’s anti-lock braking system, traction and air-ride suspension allow troops to navigate wherever the mission demands.

The PLS is the backbone of the Army’s distribution and resupply system. Built to transport ammunition and other critical supplies needed in battle, the vehicle has been used in front-line resupply missions in Bosnia, Kosovo, Iraq and Afghanistan. The latest PLS configuration features an armor-ready cab that is common with the HEMTT A4, as well as a 600-horsepower engine, electrical upgrades and incorporation of an Oshkosh TAK-4 independent front suspension for improved off-road mobility.

Recapitalization of the HEMTT and PLS vehicles is expected to begin in March 2012 and is scheduled to be completed in September 2012. The order has a value of more than $50 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.

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 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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