Oshkosh Truck Corporation (OSK)

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Shares of Oshkosh jump on defense unit contract
August 27, 2009 11:07 AM ET

OSHKOSH, Wis. (AP) - Shares of vehicle maker Oshkosh Corp. leaped Thursday after its defense unit said it was awarded a five-year contract by the U.S. Army Tank-automotive and Armaments Command Life Cycle Management Command to engineer and build tactical vehicles.

The contract's first delivery order is valued at $280.9 million for the production and delivery of 2,568 trucks and trailers.

The contract calls for the total production of up to 23,000 vehicles and trailers as well as support services and engineering. The Army's family of medium tactical vehicles is a series of up to 23 vehicles and 17 different models.

Initial test vehicle deliveries are planned for mid-2010, followed by production vehicle deliveries later in the year.

Oshkosh shares surged $4.16, or 15.1 percent, to $31.72 in morning trading.