14 May 04. DRS Technologies Inc. (NYSE:DRS – News) on Friday reported quarterly profit rose 68 percent as U.S. military spending soared.
The Parsippany, New Jersey, company, which makes displays for U.S. Navy combat ships, reported net earnings for the fiscal fourth quarter ended March 31 of $16.3m, or 60 cents per share, (2003: $9.7m, or 42 cents).
Analysts, on average, expected 54 cents a share, according to Reuters Research, a unit of Reuters Group Plc. Looking ahead, DRS forecast first-quarter earnings of 33 cents to 35 cents a share. It raised its fiscal-year outlook to $1.90 to $1.95 a share, from a prior forecast of $1.82 to $1.89 a share.
Analysts expect 38 cents for the first quarter and $1.91 for the full
DRS said it expects first-quarter revenue to increase about 50 percent to between $250mi and $260m. It raised its full-year revenue estimate to between $1.21bn and $1.24bn, from its earlier forecast of $1.20bn to $1.23bn. Analysts expect $1.24bn for the full year.
DRS Technologies, headquartered in Parsippany, New Jersey, provides leading edge products and services to defense, government intelligence and commercial customers. Focused on defense technology, DRS develops and manufactures a broad range of mission critical systems, which are sold to all branches of the U.S. military, government intelligence agencies, major aerospace and defense contractors, and international military forces. The Company operates at an annual run rate of approximately $1.2 billion in sales and employs 5,700 people worldwide.
DRS has demonstrated for 35 years that it has the agility, technology and focus to respond quickly to customers’ needs. With a compound annual revenue growth rate exceeding 30% over the past 5 years, DRS has been recognized as one of the fastest growing defense technology companies in the world. DRS has become an established market leader on several of the most important 21st century military platforms and holds a key position in the markets it serves.
Fiscal 2004 to date has been an outstanding year for DRS Technologies. We are meeting or exceeding our performance targets, delivering robust top-line growth on higher margins. We also have captured a record amount of new contract awards, ending each quarter with record funded backlog. On November 4, 2003, DRS completed its largest acquisition to date – Integrated Defense Technologies, Inc (formerly NYSE: IDE). The addition of Integrated Defense Technologies was a milestone achievement in the implementation of DRS’s business strategy, extensively diversifying our product base and expanding our customer relationships. This transaction enhanced DRS’s content on key U.S. Army and Navy weapons programs, contributed a significant new base of U.S. Air Force programs and greatly expanded the Company’s intelligence agency business, creating a formidable, defense electronics industry competitor. With an increase in U.S. defense spending projected over the long term, particularly in defense electronic systems supporting modernization and transformation military initiatives, we are optimistic about the future of DRS.