Navistar, Oshkosh Receive Truck Orders From Pentagon
February 04 2010 - 3:14PM
Dow Jones News
Oshkosh Corp. (OSK) and Navistar International Corp. (NAV) will
supply most of the 2,800 armored patrol trucks ordered by the U.S.
Department of Defense last week for troops in Afghanistan, a
department memo said.
Oshkosh, which has already received orders for 6,600 all-terrain
versions of the military's Mine Resistant Ambush Protected truck,
or MRAP, will build an additional 1,460 trucks under the Jan. 29
order issued by Ashton Carter, under secretary of defense.
Navistar, meanwhile, will build 1,060 of its latest model of the
MRAP, which it calls the MRAP-Dash. The balance of the order will
come from the Canadian unit of General Dynamics Corp. (GD), which
will supply 250 of its MRAPs, and from BAE Systems PLC (BAESY,
BA.LN), which will build 33 trucks.
Navistar, BAE and General Dynamics have built several thousand
of the heavily armored trucks for troops in Iraq, but Oshkosh has
received most of the truck orders for Afghanistan in the past year
as the military opted for the Wisconsin company's lighter, more
maneuverable version of the MRAP for Afghanistan's rugged,
mountainous landscape.
Many of the MRAPs built for Iraq were deemed to be too heavy for
Afghanistan's network of unpaved roads. Navistar and other defense
contractors have recently introduced new suspension systems for
their trucks that are intended to improve the vehicles' off-road
performance.
The latest truck orders are expected to bring Illinois-based
Navistar closer to its goal of $2.2 billion in military sales
during its 2010 fiscal year. Some analysts estimate that Navistar's
MRAP order will be worth $1 billion.
Navistar and Oshkosh have relied on military truck sales to
offset slumping sales of commercial trucks in recent years. The
truck orders were first reported Tuesday by Defense Newsstand, an
online arm of defense-industry trade publication Inside
Defense.
Navistar's stock was recently trading down 5.4% at $38.73, while
Oshkosh's stock was off 3.6% at $38.21.
-By Bob Tita, Dow Jones Newswires; 312-750-4129;
robert.tita@dowjones.com
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