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Oshkosh Defense Awarded Contract to Recapitalize U.S. Army's Heavy Tactical Vehicles

OSK

U.S. Army takes action to maintain operational readiness of its logistics fleet

The U.S. Army has awarded Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) company, a five year requirements contract to recapitalize its Family of Heavy Tactical Vehicles (FHTV). Oshkosh will bring the Army’s fleet of Heavy Expanded Mobility Tactical Trucks (HEMTT) and Palletized Load Systems (PLS) to the latest model configuration and the same zero-mile, zero-hour condition as new production vehicles.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20150619005603/en/

For more than two decades, Oshkosh has recapitalized over 12,000 heavy tactical vehicles for the U.S ...

For more than two decades, Oshkosh has recapitalized over 12,000 heavy tactical vehicles for the U.S. Army. (Photo: Business Wire)

Overall, the contract’s potential value is $780 million for the recapitalization of an estimated 1,800 FHTVs, in addition to the production of approximately 1,000 trailers. All work performed under the contract will be completed in Oshkosh, Wisconsin, with deliveries occurring from 2015 to 2019.

“As the OEM, we will recapitalize the U.S. Army’s heavy vehicles to like-new condition in order to achieve the required levels of operational readiness,” said John Bryant, senior vice president of defense programs at Oshkosh Defense. “Because the heavy fleet is the logistics backbone for a spectrum of operations, Oshkosh has worked with the Army to restore more than 12,000 heavy vehicles since 1995 – providing soldiers with the latest safety features and improved reliability for in-theater operations.”

Through recapitalization, heavily used vehicles are returned to Oshkosh, stripped to the frame rails and completely rebuilt to like-new condition. Recapitalized vehicles are assembled on the same production line as new vehicles, and put through the same extensive performance tests and inspection procedures as new vehicles. The vehicles also receive the latest technology and safety upgrades and are delivered with a new bumper-to-bumper warranty.

With a 13-ton payload and multiple variants for a wide range of operations, the HEMTT is the backbone of the Army’s logistics fleet. Oshkosh’s latest configuration, the HEMTT A4, brings significant improvements in power, maintenance and safety to the battlefield, traversing even the most challenging environments easier and more efficiently. The Oshkosh PLS supports the Army’s distribution and resupply system by providing unparalleled performance for loading, unloading and delivering ammunition and other critical supplies needed in battle. The PLS carries a wide range of cargo, and is specially designed to load and unload a variety of flatrack or ISO compatible containers on its own. The latest configurations of FHTV trucks also include air-conditioned and armor-ready cabs, electrical upgrades, and anti-lock braking to keep soldiers safe.

About Oshkosh Defense

Oshkosh Defense is a leading provider of tactical wheeled vehicles and life cycle sustainment services. For decades Oshkosh has been mobilizing military and security forces around the globe by offering a full portfolio of heavy, medium, light and highly protected military vehicles to support our customers’ missions. In addition, Oshkosh offers advanced technologies and vehicle components such as TAK-4® independent suspension systems, TerraMax® unmanned ground vehicle solutions, Command Zone™ integrated control and diagnostics system, and ProPulse® diesel electric and on-board vehicle power solutions, to provide our customers with a technical edge as they fulfill their missions. Every Oshkosh vehicle is backed by a team of defense industry experts and complete range of sustainment and training services to optimize fleet readiness and performance. Oshkosh Defense, LLC is an Oshkosh Corporation company [NYSE: OSK].

To learn more about Oshkosh Defense, please visit us at www.oshkoshdefense.com.

About Oshkosh Corporation

Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of access equipment, commercial, fire & emergency, military and specialty vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Jerr-Dan®, Frontline, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide by rental companies, concrete placement and refuse businesses, fire & emergency departments, municipal and airport services and defense forces where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, please visit www.oshkoshcorporation.com.

®, TM 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 cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, which are particularly impacted by the strength of U.S. and European economies; the strength of the U.S. dollar and its impact on Company exports, translation of foreign sales and purchased materials; the expected level and timing of DoD and international defense customer procurement of products and services and funding thereof; risks related to reductions in government expenditures in light of U.S. defense budget pressures, sequestration and an uncertain DoD tactical wheeled vehicle strategy, including the Company’s ability to successfully manage the cost reductions required as a result of lower customer orders in the defense segment; the Company’s ability to win a U.S. Joint Light Tactical Vehicle production contract award and international defense contract awards; the Company’s ability to increase prices to raise margins or offset higher input costs; increasing commodity and other raw material costs, particularly in a sustained economic recovery; risks related to facilities expansion, consolidation and alignment, including the amounts of related costs and charges and that anticipated cost savings may not be achieved; global economic uncertainty, 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 Company or equity market expectations; projected adoption rates of work at height machinery in emerging markets; 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 or shipment delays arising from quality or production issues; risks associated with international operations and sales, including compliance with the Foreign Corrupt Practices Act; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; the impact of severe weather or natural disasters that may affect the Company, its suppliers or its customers; cyber security risks and costs of defending against, mitigating and responding to a data security breach; and risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. 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.

Oshkosh Defense
Jennifer Christiansen, Vice President, Business Development
920-966-5635
jchristiansen@defense.oshkoshcorp.com