Modine Manufacturing Company (NYSE:MOD), a diversified global leader in thermal management technology and solutions, announced today it has received a six year order valued at more than $6.2 million in the aggregate from Oshkosh Truck Corporation (NYSE:OSK) to provide the powertrain cooling modules for the next generation U.S. Marine Corps’ heavy-payload truck fleet. Modine will supply a module, including a radiator, charge air cooler, and two oil coolers for each of the new Logistic Vehicle System Replacement (LVSR) trucks. The Marine Corps could purchase up to 1,900 of the new cargo, wrecker and fifth-wheel LVSR variants over the next six years.
“This is a refreshed, tougher vehicle and we are excited to be working with Oshkosh Truck on a larger scale. We are very happy in the confidence that Oshkosh Truck and the U.S. Marines have in Modine,” said Tom Marry, Managing Director, Global Power Train Cooling Products. Our Jackson, Mississippi plant was supplying Oshkosh Truck with several cooling packages to support their military and commercial product groups when we acquired that plant in March, 2005. Winning this order was a clear priority for Modine.”
Primarily used for transporting supplies such as ammunition, fuel, water, and heavy equipment, the LVSR will replace the original Oshkosh®Logistics Vehicle System (LVS) trucks, which have been in the Marine Corps' fleet since 1985. The LVSR is a technologically advanced, highly mobile, heavy-payload truck that carries up to 33,000 pounds off-road.
“Oshkosh Truck and the Marine Corps demand proven reliability and functionality that we are committed to deliver,” said Charles Katzfey, Modine’s Regional Vice President Americas. This order demonstrates Modine’s strategic focus on developing advanced technology to increase new business wins is working.”
The oil coolers will be manufactured at Modine’s Camdenton, Missouri plant. The powertrain cooling modules, which began shipment to Oshkosh Truck in January, 2007, are being installed in the vehicle, and are being sent to the Marine Corps to be used in Iraq, Afghanistan and elsewhere as needed around the world.
This version of the LVSR has increased performance – a 600 horsepower engine and advanced suspension drive – to push the LVSR to speeds of 65 miles per hour on-highway and 40 miles per hour in cross-country mode, with a 33,000 pound payload. It also offers simplified maintenance, designed to use a single lubricant instead of separate lubes for the engine oil, transfer case, hydraulics and transmission, so maintenance is simplified.
“The Modine system we selected is well matched to the performance requirements of the LVSR,” said Stephen Zink, vice-president defense, Oshkosh Truck. The efforts of the Modine design team were outstanding, and the performance of their system within the overall vehicle package has been exemplary.”
This program supports Modine’s five year goal of four to six percent organic annual revenue growth. Including acquisitions, Modine’s five year revenue growth goal is 11 to 13 percent annually.
About Modine
Founded in 1916, with fiscal 2006 revenues from continuing operations of $1.6 billion, Modine specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, HVAC (heating, ventilating, air conditioning) equipment, industrial equipment, refrigeration systems, fuel cells, and electronics. Based in Racine, Wisconsin, the company employs approximately 9,000 people at 34 facilities with three technical centers worldwide. For information about Modine, visit www.modine.com.
About Oshkosh Truck Corporation
Oshkosh Truck Corporation (NYSE:OSK) is a leading manufacturer of specialty trucks and truck bodies for the defense, fire and emergency, concrete placement and refuse hauling markets. Oshkosh Truck is a Fortune 1000 company with products marketed under the Oshkosh(R), Pierce(R), McNeilus(R), Medtec(TM), Geesink(R), Norba(R), Jerr-Dan(R), CON-E-CO(R) and London(R) brand names. The company is headquartered in Oshkosh, Wis., and had annual sales of $2.96 billion in fiscal 2005. To learn more about Oshkosh Truck Corporation, visit its web site at www.oshkoshtruckcorporation.com.
Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those regarding a positive impact from new business programs, exploitation of technology, expansion into niche markets, incremental business and continuing market strength are based on Modine's current expectations. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties including, but not limited to, market acceptance and demand for products and technologies; successful launch by Modine of the above described program; success of the above described platform in which Modine’s products are included; non-cancellation of the platform or Modine as a supplier; the ability of Modine, its customers and suppliers to achieve projected sales and production levels and avoid unanticipated product or manufacturing difficulties; and other factors affecting Modine’s business prospects discussed in filings made by Modine, from time to time, with the SEC including the factors discussed in the "Cautionary Factors" section in Item 7 of the Company's most recent Annual Report on Form 10-K and its periodic reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
