Oshkosh Truck -- one for the long haul

Posted Nov 9th 2006 2:39PM by Gary Sattler
Filed under: Good news, From the Boards, Industry

Oshkosh Truck Corporation (NYSE:OSK) makes heavy-payload tactical trucks for the U.S. Department of Defense (DoD) and has recently acquired Jerr-Dan, the towing equipment manufacturer, from Littlejohn & Co. for a reported $80 million.

Oshkosh truck is currently trading at about $44 and has a recorded 52-week range of $42.10 to $65.69. We'll need to watch carefully how the changes in the way our government does business will affect this company. The company has a very strong history, but as the Bush administration's military industrial machine has taken such a severe hit in this midterm election, we must also consider the effects on "defense contractors."

The holders of Oshkosh Truck shares have been given a wall of protection from this development. I'm given pause to wonder if the acquisition of Jerr-Dan was actually somewhat in defiance of the writing on the wall but actually I think Oshkosh Truck is bigger than that.

Oshkosh Truck is such a wide spread and well rounded operation that to call them a defense contractor is actually throwing a blanket over who they really are. They are a major player in a number of areas and they have very impressive financial numbers. A fantastic overview of the company can be reached from their website:

A partial view of their brands would include:

Pierce: Manufacturers of fire and rescue vehicles
McNeilus: Manufacturers of concrete and refuse collection vehicles
Jerr-Dan: Manufacturers of towing and recovery equipment
Medtec: Manufacturers of Type I, II, III and Additional Duty ambulances

Oshkosh truck is truly a leader in its field(s). It is a Fortune 1000 global leader in specialty trucks and truck bodies. Its vast holdings cover the globe and it is certainly apparent that the company knows exactly what it is doing. Oshkosh Truck posted $2.96 billion in revenues for fiscal 2005. With the current share price in the region of $44, I would consider Oshkosh a buy.

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