UPDATE 2-Force Protection Q2 profit lags Street

martedì 11 agosto 2009 00:35

* 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: Quotazione) 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: Quotazione).

"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: Quotazione).

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.   Continua...