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Ladson-based armored vehicle maker Force Protection Inc. on Monday announced increased quarterly earnings and revenues and a bigger year-end cash balance. Revenues for the fourth quarter of 2009 rose 21% to $289 million, compared to $239 million a year ago.
Staff Report
Published March 9, 2010
Armored vehicle maker Force Protection Inc. announced increased quarterly earnings and revenues on Monday, as well as a bigger year-end cash balance.
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evenues for the fourth quarter of 2009 rose 21% to $289 million, compared to $239 million a year ago. Quarterly earnings for the Ladson-based company increased 57% to 27 cents per share, up from 17 cents in 2008.
In the report, Force Protection stressed the importance of its modernization, spare parts and sustainment business as key to its revenue spikes. The company said its revenues from those sectors increased by $461 million, or more than 180%, over 2008.
“We are transforming our company into a full-service survivability solutions provider,” Force Protection President and CEO Michael Moody said. “We have expanded our operational footprint and significantly improved our capabilities in this business.”
The company’s year-end cash balance jumped to $147 million, from $111 million, but net sales fell to $977.1 million, from to $1.3 billion, in 2008.
Force Protection blamed the dip on $480 million of so-called pass-through sales in 2008 by General Dynamics Land Systems, a joint venture formed between Force Protection and General Dynamics as part of a competitive contract award to produce mine-resistant, ambush-protected vehicles for use in Iraq and Afghanistan
There were no vehicle pass-through sales by General Dynamics in 2009. Excluding such sales from 2008, Force Protection said it would have reported a significant increase in year-over-year total revenue.
The company’s operating income for fiscal 2009 was $43.3 million, down from $68.5 million in 2008. Force Protection said that $19.3 million of one-time charges related to its Cheetah vehicle inventory recorded in the 2009 third quarter significantly impacted the year-over-year results.
Force Protection did ship 123 Buffalo vehicles in 2009, a record number for the program and more than a 50% increase over 2008. It also is continuing work on a light weight patrol vehicle, the Ocelot. Two Ocelot prototypes are involved in ongoing trials with the U.K. Ministry of Defence, and the vehicle has also been submitted for evaluation for the Australian government.
“We are … continuing to push forward in the area of new vehicle development,” Moody said.
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