WARRENVILLE, Ill. (Oct. 13, 2008) — IC Bus parent company Navistar announced two military contracts totaling $60.4 million, including one for militarized school buses, as the company faced with declining school bus and truck sales continues to see strong sales from its military division.

Under one contract with the U.S. Army TACOM Life Cycle Management Command, IC Bus’ Conway, Ark., plant will build 289 passenger buses based on the IC Bus CE 300 platform with MaxxForce DT engines. Navistar spokesman Tim Touhy said the buses are essentially the same as the standard school bus but are equipped with a ruggedized engine, lap belts and air conditioning. The $31.6 million order will be delivered between February 2009 and the end of June 2010.

TACOM also placed a $28.8 million order for refrigerator trucks based on the International WorkStar Platform also with Maxx Force Engines.

Navistar also announced a $35.7 contract to re-engineer the Mine Resistant Ambush Protected (MRAP) vehicles by April of 2009. The vehicles gained attention early in the Iraq War as an alternative to the Humvee and better equipped to protect against mines and improvised explosive devices. Navistar will transition to a smaller vehicle "designed for the unique conditions in Afghanistan" called the MaxxPro Dash. In September, the Marines ordered 822 of these vehicles.

While Navistar truck and school bus sales have declined since 2006, military sales have steadily increased since the company re-entered the segment in 2004. Touhy said military sales account for approximately $2 billion of the company's $16 billion in revenue. The company has estimated sales of the MRAP alone will account for $1.5 and $2 billion in annual sales by 2010.