UPDATE 2-Oshkosh wins $1.1 bln Afghanistan truck deal
* Beats out three other teams
* Company has capacity to build vehicles
* First trucks to be delivered in July (adds funding details, CEO comments, stock movement, byline)
WASHINGTON, June 30 (Reuters) - Oshkosh Corp (OSK.N) on Tuesday won a $1.1 billion fixed-price contract to build 2,244 lighter, more maneuverable armored trucks for use by U.S. troops in Afghanistan, the Pentagon said on Tuesday.
Oshkosh beat out BAE Systems (BAES.L), Navistar International Corp (NAV.N), and Force Dynamics LLC, a joint venture between Force Protection Inc (FRPT.O) and General Dynamics Corp (GD.N) to win the contract.
The news was released after U.S. markets closed, but in afterhours trade, Oshkosh shares leaped about 25 percent, or $3.68, to hit $18.22.
Robert Bohn, chairman and chief executive of the Wisconsin truck maker, said his company had the capacity to build the 2,244 Mine Resistant Ambush Protect All Terrain Vehicles (MRAP-ATV) ordered by the Pentagon at this point as well as any follow-on orders.
"Right now, we have the capacity and capability to build the vehicles required, as well as the add-ons," he said.
The company said it began producing its MRAP-ATV trucks several weeks ago to ensure it could meet the Pentagon's urgent needs, and would deliver some vehicles in July.
The Pentagon wants to get the trucks quickly so they can be used by U.S. troops heading to Afghanistan.
A Pentagon spokeswoman had no additional information on the military's plans for the program on Tuesday evening.
Defense Secretary Robert Gates is a big fan of the MRAP armored vehicles, which feature a V-shaped hull to deflect roadside bombs, but earlier versions were not maneuverable enough to deal with Afghanistan's difficult terrain so the Pentagon has been racing to buy a lighter version.
Oshkosh said in a statement that it and its suppliers had already made significant investments in materials and were well-positioned to accelerate their manufacturing capabilities for the new trucks.
Bohn said his company's ATV won because of its reinforced, independent suspension, its defense engineering work, and the high survivability it offered troops.
Bohn said the contract should allow the Oshkosh to rehire "a few hundred" workers let go in recent months, especially in Pennsylvania. Continued...
