Business Services Industry
Force Protection, Inc. Plans to Significantly Expand Vehicle Production Levels by Year End 2007
Business Wire, March 22, 2007
LADSON, S.C. -- Force Protection, Inc. (NASDAQ:FRPT) updated investors yesterday on its production expansion and developments as the company concluded its strongest year-end performance to date.
Force Protection COO Ray Pollard noted that, based on receipt of vehicle contracts, the company is on target to reach per-month vehicle production levels of more than 400 vehicles per month by the end of 2007, compared to 50 vehicles per month at the end of 2006. Through Force Dynamics--Force Protection's joint venture with General Dynamics Land Systems, a business unit of General Dynamics Corporation (NYSE:GD)--this projected capacity will represent the highest capability available among armored vehicle manufacturers.
"We have had a tremendous track record in 2006 with over 300 vehicles thus far produced and in the field," said Pollard. "Our total award opportunities as of December 31, 2006 were in excess of 900 vehicles, of which we have delivered 380 vehicles. In December 2006, we signed a joint venture with General Dynamics which we hope will further allow us to meet the needs and execute the contracts of the MRAP program."
Force Protection further noted an aggressive 2007 manufacturing and expansion plan that will increase production space by more than 60 percent. The plan includes the start-up of its recently purchased blast and ballistic test range in Edgefield, SC, a 60,000 square foot facility for research and development, the continued construction of a 90,500 square foot warehouse at its current site, and plans to lease an additional 120,000 square foot production facility at an alternate location in the state of South Carolina to accommodate production of its newest vehicle series, Cheetah.
Pollard added, "With these 2007 initiatives underway, Force Protection expects vehicle production levels to increase to 200 per month by the end of summer, and to more than 400 per month under the combined effort of the company and its partners by the end of the year.
"Our year-end production capacity should enable us to effectively satisfy MRAP vehicle requirements," said Pollard. Force Dynamics has been awarded 329 out of the 595 MRAP vehicle contracts thus far awarded.
The audio replay of Force Protection's 2006 earnings conference call is available by dialing 800-405-2236 (U.S. domestic) or 303-590-3000 (international) and entering the replay pass code 11086707.
A Web cast replay is also available on the Company's Web site at www.forceprotection.net.
About Force Protection
Force Protection, Inc. manufactures ballistic- and mine-protected vehicles through its wholly owned subsidiary. These specialty vehicles are protected against landmines, hostile fire, and Improvised Explosive Devices (IEDs, commonly referred to as roadside bombs). Force Protection's mine and ballistic protection technology is among the most advanced in the world. The vehicles are manufactured outside Charleston, S.C.
For more information, go to www.forceprotection.net.
This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. These forward-looking statements involve certain risks and uncertainties ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Technical complications may arise that could prevent the prompt implementation of the strategic plan outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to, those set forth in the company's Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law.
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