Military vehicle maker's profits up

Force Protection Inc., the Ladson-based manufacturer known for its blast-resistant military vehicles, announced an increase in quarterly profit Monday but said it expects to build fewer combat transports this year.

Instead, the company will continue to cut costs and try to grow its spare parts business, which made up an increasingly larger portion of its sales in 2009.

Revenue from the spare parts and sustainment division, which sells removable blast-resistant side panels and upgraded suspension systems, increased to make up 76 percent of Force Protection's $289 million in fourth quarter sales last year. During the last quarter of 2008, that division accounted for 41 percent of sales.

The company's fourth-quarter 2009 net income increased 57 percent to $18.4 million, or 27 cents a share, compared to the same period the prior year. The results beat Wall Street expectations.

The company also released its year-end results for 2009, saying sales fell 26 percent to $977 million, while gross profit slid by roughly the same margin. Overall, the yearly gain per share amounted to 43 cents, a fall from 69 cents in 2008.

"We expect to continue to operate in an environment of defense spending restraints," Michael Moody, chief executive officer, said during a conference call Monday with industry analysts.

Force Protection will continue to cut general and administrative expenses as part of a previously announced goal to trim $40 million in spending. As part of that plan, 120 workers were laid off.

Tommy Pruitt, senior director of communications, said the company doesn't expect more layoffs through that cost-cutting push.

Company officials expect to spend more on research and development efforts, which totaled $20.1 million during 2009. And Moody hinted that Force Protection might buy or partner with similar defense companies, perhaps using a portion of its $147 million in cash.

Overall, company officials indicated they'll continue to shift away from vehicle production. Moody estimated the company will deliver between 200 and 250 vehicles next year, compared with 379 deliveries throughout 2009.

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The company has struggled to win big vehicle production contracts with the military, largely losing out to Oshkosh Corp., a Wisconsin-based competitor.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.