As expected, Force Protection (NASDAQ: FRPT) reported yesterday
(Aug. 9, 2007) a sharp increase in sales (140%) and net profit
($0.14 EPS) in its second quarter sales. The company's net sales
reached US$134.7 million, compared to $56.1 million in Q2/06.
This surge reflects the growing demand for mine
protected armored vehicles (MRAP) pioneered by Force Protection.
In the first six months of 2007 the company sold about a quarter
billion worth of armored vehicles ($234.9 million, 158% over
the first half of 2006).
also spent about $8 million on the development of its future
lightweight vehicle, expected to enter production next year.
With production rate growing, it seems that the entire year
will be extra strong for Force Protection, according to Gordon
McGilton, Chief Executive Officer of Force Protection, during
the quarter the company was awarded contracts totaling $711
million to produce 1,455 MRAP vehicles. Despite the growing
competition from Navistar's International and BAE Systems' Armor
Holdings, the demand for MRAP is so high that the military is
buying everything the industry will be able to produce In 2008.
To meet this demand Force Protection is planning
to expand its product line beyond the current Buffalo and Cougar,
adding the lighter Cheetah vehicle. Force protection expects
its new facility will have a production capacity supporting
approximately 2,000 Cheetahs in 2008.
Anticipating the growing demand for its products,
Force Protection is well positioned to benefit from the expansion
of production facilities made in the past months. McGilton indicated
that his company "produced 229 vehicles in the second quarter
compared to 285 vehicles in all of 2006." These volumes
also contributed to higher profits, reflected by quarterly operating
profit of $13.9 million for the 2nd quarter, compared to $1.8
million for the Q2/2006. Shareholders should be equally satisfied
as net income for the six month period reached $12.1 million,
or $0.18 per diluted share, compared to net loss of $(989,267)
or $(0.03) in the first half last year.
FY 2006: Force Protection Benefit from
the Market Surge for Heavy Protected Armored vehicles
Benefiting from the rapid growth in the heavy
armored vehicles market segment, Force Protection, Inc. (NASDAQ:FRPT)
reported its first profitable year experiencing dramatic growth.
Force protection reported March
16, 2007 that its net sales for 2006 totaled US$196 million,
the company's net income from these operations amounted to $18.2
million, or $0.39 per diluted share. The fourth quarter represented
about a third of the annual sales, ($62.9 million) and contributed
to 93% of the annual net income. According to Gordon McGilton,
Chief Executive Officer of Force Protection, 2006 has been a
milestone year for the company. Following the completion of
a $152.75 million equity offering and forging partnerships with
industry leaders such as General
Armor Holdings, the company positioned itself on course
to tap the potential of surging demand for heavy armored vehicles
for the US forces, as reflected by the MRAP
and JLTV programs.