That would bring the total number of ordered vehicles to 5,224. According to Steve Barger of KeyBanc Capital Markets, if Oshkosh manufactures all the vehicles rather than subcontracts elements of the program at an operating margin of between 10 percent and 12 percent, the Pentagon contract could contribute 90 cents per share to $1.10 per share before the end of the company's fiscal 2010. Similarly, Bernstein Research analyst Douglas Harned feels that the company could pull in $4 billion to $5 billion over the life of the contract. There is very little doubt that the recent development will help company overcome it's difficulties. Late in April, the company reported that it swung to a fiscal second quarter loss. Oshkosh posted a net loss of $1.19 billion or $16.02 a share for the second quarter, compared to net income of $72.6 million or $0.97 per share in the prior year quarter. Excluding items, net loss came at $17.7 million or $0.24 a share. Revenue decreased 26.9% to $1.3 billion from $1.8 billion. Analysts on average expected the company to report a loss of $0.20 a share on revenue of $1.48 billion. The company has initiated aggressive cost cutting measures and has even suspended dividend to reduce debt.In spite of the disappointing results in the second quarter, the company used available cash to reduce its debt by $174.4 million in the quarter and remains committed to driving additional debt reduction in the remainder of fiscal 2009.  The company has reduced wages for all salary domestic employees with larger wage reductions at the senior executive level. Furthermore, it has eliminated all bonuses for fiscal 2009, implemented periodic furloughs for salary and production employees at corporate and in most businesses in the company, eliminated  401(k) match for fiscal 2009 for most employees, and implemented further reductions to marketing, information technology, travel, and other spending. raising The expects fiscal 2009 overhead and operating expense savings of more than $200 million.  Oshkosh also reached agreements with our suppliers to rollback virtually all material cost increases that were granted in fiscal 2008 and early fiscal 2009 when commodity costs were rising sharply. It expects the benefits of the lower negotiated cost to phase in over the remainder of fiscal 2009. It also continues to focus on cash generation. The company was able to reduce its inventories by 75 million in the second quarter last quarter and they're down more than 250 million since last years second fiscal quarter. We must remain diligent and fo. That's no small feat when considering that demand in some of its businesses was down 70% to 80% in the quarter. Looking at the balance sheet the company has $107.70 million in cash and cash equivalents and $2.52 billion in debt. Clearly, Oskosh's balance sheet is debt-laden. The stock currently trades at a forward P/E (fye 31-ec-10) of 16.16.The company's defense, Pierce fire apparatus, airport products and domestic refuse collection vehicle businesses should continue to perform well given their current backlogs and multiple business opportunities. Of the seven Wall Street analysts who follow the stock, two rate it a Strong Buy, One tags it a Moderate Buy while four recommend Hold. Disclosure: Author does not own any of the stocks discussed here.