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US: Navistar announces US$410m military vehicle order

Tuesday, March 18, 2008,

Tags: Corporate Finance, Navistar International Corporation.

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Navistar has announced a US$410m order for 743 Mine Resistant Ambush Protected (MRAP) vehicles for the US Marine Corps.

The International MaxxPro MRAP vehicles will be built by Navistar Defense LLC (formerly known as International Military and Government LLC) a wholly owned affiliate of Navistar International Corporation.

The new order increases Navistar's total Category I MRAP vehicle orders to 5,214. Current production levels are at 500 vehicle units a month and the company says it has thus far delivered 2,000 MaxxPro MRAP vehicles to the military. The firm notes that its overall MRAP vehicle orders now exceed US$3bn, with the first contract awarded in May 2007.

MaxxPro MRAP vehicles are designed to protect troops from roadside bombs and other threats. Presently, there are more than 1,500 MaxxPro MRAP vehicles operating in war zones, the company states.

To meet the demands of changing mission requirements calling for increased protection and payload capacity, Navistar introduced its recently updated Category I MaxxPro MRAP vehicle, naming it the MaxxPro Plus.

As orders continue for these vehicles, the OEM says it has delivered nearly 120,000 parts pieces, components and other field support services for MaxxPro MRAP vehicles. Parts and service awards from the military thus far total more than US$300m. Additionally, nearly US$80m in truck orders including water and fuel tankers were awarded to the company in recent months by the military.

Published on Tuesday, March 18, 2008

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