Why Oshkosh Stock Fell on Friday
AM General beat out Oshkosh (NYSE: OSK) for an $8.66 billion U.S. Army contract to build the new Joint Light Tactical Vehicle (JLTV). The decision was unexpected and caused Oshkosh shares to fall as much as 14% on Friday.
Oshkosh manufactures a wide range of specialized military and commercial trucks. The company won the original JLTV contract back in 2015 -- an initial $6.7 billion low-rate initial production contract. But the contract was open to recompete, and the Army has changed vendors for the second round of Humvee replacements.
Terms of the new deal call for AM General to receive $230.8 million for initial production, with options for up to 20,682 JLTVs and 9,883 trailers that could push the total award to more than $8 billion.
Source Fool.com
