Oct 15 Surveillance products maker FLIR Systems
Inc said it expects to report a fall in third-quarter
profit as federal agencies cut spending and delayed contracts,
sending its shares down 10 percent.
The company, which makes thermal-imaging products and
infrared cameras used for airborne and ground-based surveillance
and border patrol, estimated earnings of 32-33 cents per share
for the quarter ended September. This compares with a profit of
37 cents per share in the same quarter last year.
FLIR also cut its revenue forecast for the full year to
$1.45-$1.5 billion from $1.5-$1.6 billion.
"Ongoing uncertainty in the U.S. government is likely to
continue to affect our performance in the fourth quarter, and
our revised guidance is intended to reflect this environment,"
Chief Executive Andy Teich said in a statement.
The U.S. government made up more than a quarter of Flir's
FLIR also said it would close up to six plants in the United
States and Europe and transfer those operations to larger
factories. It also intends to consolidate its optics and
The company said it would take about $27 million to $30
million in charges related to the realignment in the fourth
FLIR shares were down at $29.90 on Tuesday morning on the
Nasdaq. They have risen 54 percent so far this year, far
outperforming the S&P 500 index.