Oshkosh Surges on Pentagon Deal (Update)

(Updated to include comments from an Oshkosh spokeswoman and closing stock prices.)

Oshkosh(OSK Quote) shares rose dramatically Wednesday after the company scored a $1 billion contract from the U.S. military to provide more than 2,000 armored fighting vehicles, mostly for use by Army and Marine units in the intensifying warzones of Afghanistan.

One of four groups competing for the contract (others included British defense group BAE Systemsand General Dynamics(GD Quote)), Oshkosh was was declared the lone winner.

The Pentagon, which fast-tracked the vehicle's development, has said that it could eventually order 10,000 of the trucks.

The conflict in Afghanistan will be a boon to Oshkosh; the company won a $1 billion order to supply U.S. troops with armored fighting vehicles, such as this M-ATV.

Shares of the company shot higher by 27%, or $3.89, to $18.43 in afternoon trading Wednesday. Volume reached 10.5 million shares, more than ten times the daily average. The stock was approaching its 52-week high of $20.95, which it touched last July. ...