August 10, 2009 / 10:37 PM / 9 years ago

UPDATE 2-Force Protection Q2 profit lags Street

* Q2 EPS $0.01 vs est $0.06

* Q2 rev $187.1 mln vs est $156.6 mln

* Shares down 8 pct (Recasts, adds conference call details; updates share movement)

Aug 10 (Reuters) - Defense contractor Force Protection Inc (FRPT.O) posted a lower-than-expected quarterly profit, hurt by manufacturing costs related to lower vehicle shipments, sending its shares down 8 percent.

The company, in a conference call with analysts, said it is examining its relationship with General Dynamics (GD.N).

“I think it is appropriate considering the disappointment from M-ATV we go back and examine that relationship and determine if proceeding in the current form is in the best interest of Force Protection,” the company said.

If some modification to that business arrangement is worthwhile, the company said it will “proceed separately”.

In June this year, Force Protection lost a $1.1 billion Afghanistan truck deal to Oshkosh Corp (OSK.N).

The contract to supply Mine Resistant Ambush Protect All Terrain Vehicles (MRAP-ATV), in a joint venture with General Dynamics, would have given a significant boost to the company’s earnings in the short term.


The company, which makes armored trucks, reported second-quarter net income of $441,000, or 1 cent a share, compared with a loss of $8.3 million, or 12 cents a share, in the year-ago quarter.

Revenue fell 45 percent to $187.1 million.

Analysts on average expected the company to earn 6 cents a share, before items, on revenue of $156.6 million, according to Reuters Estimates.

Shares of the Ladson, South Carolina-based company were down 8 percent at $4.65 in trading after the bell. They closed at $5.06 Monday on Nasdaq. (Reporting by Amulya Nagaraj in Bangalore; Editing by Pradeep Kurup and Deepak Kannan)

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