What austerity measures affecting military spending? That is what Oshkosh Corporation (NYSE: OSK) may be asking. The U.S. Department of Defense has awarded the Oshkosh Defense unit a contract for the Joint Light Tactical Vehicle program’s Engineering, Manufacturing and Development phase.
In a press release this morning, the report shows that this JLTV program aims to replace many of the U.S. military’s aged Humvees with a lightweight vehicle that offers greater protection, mobility and transportability. Lockheed Martin (NYSE: LMT) and privately held AM General are the other two companies sharing in this award.
The JLTV is managed by the Joint U.S. Army and U.S. Marine Corps program as part of the Army’s Program Executive Office for Combat Support and Combat Service Support. The financial terms are dwarfed by the longer-term possibilities here because Oshkosh will deliver 22 Oshkosh-designed and manufactured JLTV prototypes within 365 days of the contract award, and support government testing and evaluation of the prototypes.
Oshkosh shares are higher by 1.3% and Navistar International Corporation (NYSE: NAV) is getting just one more black eye with its shares down by almost 4% at $23.94.
JON C. OGG