Stewart & Stevenson Secures Contract for the Fourth Program Year of the Family of Medium Tactical Vehicles
17 May 2006 - 8:30AM
PR Newswire (US)
HOUSTON, May 16 /PRNewswire-FirstCall/ -- Stewart & Stevenson
Services, Inc. (NYSE:SVC), the premier manufacturer of medium
tactical vehicles for the US Army, announced today that Stewart
& Stevenson Tactical Vehicle Systems, LP (TVS) has recently
received contract modifications valued at approximately $625
million. These modifications call up an incremental 1,800 trucks
and 1,077 trailers in base contract quantities and 2,484 trucks in
option quantities for the fourth program year of the current Family
of Medium Tactical Vehicle (FMTV) production contract which began
April 17, 2003 and includes the sustaining support element. The
value and quantities of these contract modifications are consistent
with the Company's prior expectations. In-hand orders for future
deliveries of vehicles and service now exceed $1.4 billion. FMTV
cargo, recovery, dump and High Mobility Artillery Rocket System
(HIMARS) resupply variants will be delivered under these
modifications supporting the US Army's transformation to a modular
and more standardized organization. In addition, these
modifications include vehicles to be delivered to the Kingdom of
Jordan as a second phase of U.S. Foreign Military Sales investment.
Work will be completed at the TVS design, fabrication and assembly
facility in Sealy, Texas. Dennis Dellinger, President of Stewart
& Stevenson TVS, said, "It is a privilege to provide our armed
forces with the workhorse vehicles of the tactical wheeled fleet.
These orders are a testament to our progressive investment in our
people and facility in Texas. Our recent capacity expansion
provides us the ability to deliver these increased volumes in a
timely and economical fashion. The TVS team has developed a
standard of quality, reliability and ultimate readiness in medium
tactical vehicles that is unmatched in the industry." Stewart &
Stevenson has produced over 32,000 FMTV vehicles since 1991 from
their state-of-the-art facility in Sealy, Texas. The FMTV, which
includes 2.5-Ton, 5-Ton and 10-Ton trucks in more than 15 active
variants, is the platform of choice for the U.S. Army. In April
2005, Stewart & Stevenson increased their military product
range to include the 4x4 and 6x6 Pinzgauer all-terrain vehicles
recently successfully fielded in New Zealand in armored variants.
Stewart & Stevenson's armored cabs for FMTV continue to provide
outstanding performance for U.S. forces deployed in Iraq. Stewart
& Stevenson Services, Inc. (NYSE:SVC), founded in 1902, is
primarily engaged in the design, manufacture and service of medium
and light tactical vehicles for the U.S. Army and others worldwide.
Stewart & Stevenson Services, Inc. is not affiliated with
Stewart & Stevenson LLC. For more information on Stewart &
Stevenson Services, Inc., visit http://www.ssss.com/ . This press
release contains forward-looking statements that are based on
management's current expectations, estimates, and projections.
These statements are not guarantees of future performance and
involve a number of risks, uncertainties and assumptions and are
made pursuant to the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995. Many factors, including
those discussed more fully elsewhere in this release and in the
Company's filings with the Securities and Exchange Commission,
particularly its latest annual report on Form 10-K, as well as
others, could cause results to differ materially from those stated.
These factors include, but are not limited to, risks of dependence
on government and failure to obtain new government contracts,
inherent risks of government contracts, risks of supply
interruptions, risks associated with Distributed Energy Solutions
segment, risks of fixed-price contracts, risks as to rising steel
prices, risks as to cost controls, risks of dependence on third
party for support services, risk of decline in defense spending,
risks of general economic conditions, risk of competition, risks
relating to technology, risks relating to personnel, risks of
claims and litigation, risks of product defects, risks as to
foreign sales and global trade matters, risks as to acquisitions
and restructuring activities, risks as to currency fluctuations and
risks as to environmental and safety matters, all as more
specifically outlined in the Company's latest annual report on Form
10-K. In addition, such forward-looking statements could be
affected by general industry and market conditions and growth
rates, general domestic and international conditions including
interest rates, inflation and currency exchange rates and other
future factors. Actual outcomes and results may differ materially
from what is expressed or forecasted in such forward-looking
statements. DATASOURCE: Stewart & Stevenson Services, Inc.
CONTACT: Scott Biar, CFO and Treasurer of Stewart & Stevenson
Services, Inc., +1-713-868-7700 Web site: http://www.ssss.com/
Copyright
Stewart (NYSE:SVC)
Historical Stock Chart
From May 2024 to Jun 2024
Stewart (NYSE:SVC)
Historical Stock Chart
From Jun 2023 to Jun 2024