(Updates with share decline in fifth paragraph. For further information, see BUDG <GO>)
Feb. 13 (Bloomberg) -- The U.S. Army has proposed buying fewer medium-duty trucks made by Oshkosh Corp. to save $2.2 billion during five years, according to a Defense Department budget document.
The proposed restructuring of the Family of Medium Tactical Vehicles, or FMTV, program is “due to Department funding constraints,” the document says. The move is projected to save $100 million in fiscal 2013 and the remainder through fiscal 2017, according to the document released today.
The Army would keep more medium-duty cargo trucks called the M900 to offset any FMTV shortages, it states.
The defense budget for fiscal 2013, which begins Oct. 1, would spend $377.4 million to buy 1,471 FMTV trucks, down from an estimated $438 million for 2,524 trucks in fiscal 2012. The Pentagon in 2010 estimated the program would cost $417.5 million in the next fiscal year.
Shares of the Oshkosh, Wisconsin-based company fell 62 cents, or 2.5 percent, to $24.30 at 12:47 p.m. in New York trading. They traded as $25.67 earlier today.
--Editors: Stephanie Stoughton, Joe Winski
To contact the reporter on this story: Brendan McGarry in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Stephanie Stoughton at email@example.com -0- Feb/13/2012 16:26 GMT