Earnings reported at $16M

Force Protection Inc. posted better-than-expected quarterly results Monday, helped by strong shipments of its Buffalo and Wolfhound armored vehicles.

The Ladson-based defense contractor reported third-quarter net income of $3.2 million, or 5 cents a share, compared with $19.9 million, or 29 cents a share, in the same quarter a year ago.

Excluding a $19.3 million charge for the write-down of its inventory related to the development of multipurpose all-terrain vehicle that the government did not buy, the company earned $16 million, or 23 cents a share.

Analysts on average expected the company to earn 12 cents a share on revenue of $211.8 million before write-downs, according to Thomson Reuters I/B/E/S.

Revenue came for the period ended Sept. 30 in at $316.2 million. Company officials said net sales were a record for the quarter, noting that the comparable figure for last year included $106.9 million of onetime sales from a joint venture partner.

Chairman and chief executive Michael Moody called the latest quarter's growth "substantial" and said the company is continuing to seek out new revenue sources so as not to rely solely on armored-truck sales.

"We were pleased to see strong, continuing demand for our ... business and to have made significant deliveries of both the Buffalo and Wolfhound vehicles during the third quarter," Moody said. "We will continue to adjust our infrastructure to execute against anticipated vehicle orders and significant long-term demand for service, support and upgrade work to our fleet of vehicles. We will also continue to push forward on the development of new products, including both upgrades to our existing platforms and through new vehicle development."

In September, the company announced plans to cut its payroll by 120 workers in an effort to save about $40 million a year after losing out on a major U.S. military contract to provide lighter-weight armored vehicles that can navigate the steep, rocky terrain in Afghanistan, where the war on terror is concentrated.

The company is trying to diversify its business to include support and maintenance services for its existing fleet of several thousand vehicles, many of which are being driven in combat zones in Iraq.

Force Protection also has developed a line of accessories that make combat vehicles better able to withstand powerful mine blasts and other explosions.

"We have a solid base of business from which to build, a clean balance sheet with no debt and an expertise in survivability technology which positions us to compete for new business and support our fleet around the globe," Moody said. "As the transformation of Force Protection continues, with careful control of our cost structure and continued focus on our stated strategy of pursuing a broader range of products and customers, we will be able to demonstrate the capability to create significant value for our shareholders and our customers.

Shares of the armored vehicle maker were up 4 percent at $5.32 in after-market trade. They closed at $5.12 Monday on Nasdaq.

Reach Warren Wise at 937-5524 or wwise@postandcourier.com.