Oshkosh Corp. has been awarded a $74 million order for 246 U.S.
Army trucks, according to the Department of Defense.
Three bids were received for the work, which is expected to be
finished by Dec. 31, 2014.
Oshkosh has built many Family of Medium Tactical Vehicles that
have been used in the wars in Iraq and Afghanistan. Earlier this
month, however, Oshkosh predicted a reduction in Defense
Department spending, which will have a significant effect on net
sales in 2014.
“We expect improved performance in fiscal 2014 in each of our
non-defense segments as we continue to implement our MOVE
initiatives and take advantage of expected recovering markets,”
said Charles Szews, Oshkosh Corporation chief executive officer.
“While our growth expectations in these segments will likely not
be enough to overcome the large reduction in defense segment
revenues and operating income in fiscal 2014 that we’ve been
discussing over the past year, they do signal that we are
confident in our underlying businesses and the progress we are
making with our MOVE strategy.”
The company is forecasting net sales of $6.6 billion to $6.9
billion, down from $7.7 billion in fiscal 2013. It’s defense
segment sales decreased 46.1 percent to $513.8 million for its
fourth quarter. Defense segment operating income decreased 82
percent to $11.2 million, or 2.2 percent of sales, compared to
the year ago period.