Thursday, Jul 19, 2012


 
   By Bob Tita

Oshkosh Corp.'s (OSK) efforts to offset declining truck orders from the U.S. military with sales to overseas armies received a boost Thursday with an order for 750 armored patrol trucks from the United Arab Emirates.

The UAE's order represents the first time Oshkosh will supply its mine-resistant, ambush-protected all-terrain vehicles, or M-ATVs, to a foreign military.

Oshkosh didn't disclose a dollar amount for the UAE contract, but some analysts estimate it's worth about $330 million.

The Wisconsin-based specialty truck maker developed the M-ATV three years ago for U.S. troops operating in Afghanistan's rugged, mountainous terrain. At the time, the military lacked a truck that offered both off-road mobility and protection from roadside bombs and ambush attacks.

Oshkosh's truck design was selected over proposals from several larger defense contractors. Since 2009 Oshkosh has received orders for more than 9,500 M-ATVs, but orders have slowed significantly over the past year as the U.S. military begins winding down ground combat operations in Afghanistan.

Oshkosh and other military-truck builders, including rival Navistar International Corp. (NAV), have pursued contracts with foreign armies interested in upgrading their tactical-truck fleets.

"The UAE is central to our international growth strategy," John Urias, executive vice president for Oshkosh's defense unit, said in a written statement. "We are honored that they have selected the Oshkosh M-ATV to support their mission."

Oshkosh said the M-ATVs will be delivered the UAE between January and August 2013. The UAE is a confederation of seven principalities, or emirates, that covers a coastal sliver of the Arabian Peninsula between Saudi Arabia, Oman and Iran. The oil-rich country has strengthened its defense ties with the United States in recent years.

Oshkosh in the past has supplied other types of military vehicles to the UAE, including large haul trucks for transporting tanks, construction equipment, armored vehicles and missile launchers.

Oshkosh's stock gave up earlier gains and was down 2.1% at $20.75 in recent trading Thursday.

Write to Bob Tita at robert.tita@dowjones.com

(END) Dow Jones Newswires

19-07-12 1858GMT