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Trucking for Profits

A political firestorm continues to flare in Washington D.C. over the fate of the country's efforts in Iraq. Yet there is one issue that partisans on both sides of the aisle are willing to join hands over. And no, I'm not talking about Congressional pay raises.

I'm referring to the Mine Resistant Ambush Protected vehicle program, or MRAP, which received an additional $4.1 billion from the House Armed Services committee earlier this month. These heavily-armored vehicles, specially designed with V-shaped underbellies, are able to deflect the improvised explosive devices that have been responsible for so much bloodshed in Iraq and Afghanistan. The cash infusion brings the MRAP piggybank to $8.4 billion, which will buy roughly 8,000 of these vehicles for the U.S. Army and Marine Corps.

The funds will be doled out to contractors between now and the end of June, but there is already talk of extending the program. On May 11, officials at the Pentagon met privately to discuss it. That followed an announcement from the U.S. Army that it wants more MRAPs, in excess of its current allotment of 2,500 vehicles. This is all good news for Oshkosh Truck Corp. (OSK), a heavy equipment maker with a strong defense division.