By Scott Miller
SCBIZ Daily Staff

LADSON -- Force Protection Inc. reported Tuesday that its net income for the first half of 2008 was 82 times greater than it was in the same time period last year.

The armored-vehicle maker reported net income of $15.3 million, or 12 cents a share, for the six months ending June 30, compared with $183,000, less than a penny per share, in the same time frame in 2007.

In a conference call with investors, CEO Michael Moody said the company has taken several steps to improve efficiency. Force Protection has gone from more than 1,900 employees in 2007 to fewer than 1,500 now but remains “at or near record production levels,” he said.

The company also continues to improve upon the value of its joint venture with General Dynamics and will continue to pursue contracts overseas, Moody added.

Although net income increased, gross margins were negatively impacted by the lack of value for Force Protection of vehicles produced by General Dynamics, Moody said. Gross margin dropped from 18.8% to 9.5% for the first quarter and from 14.8% to 11.0% for the second quarter.

“Although we recognize the improvements in the first half of 2008 over the comparable periods in 2007, we are by no means satisfied,” Moody said. “We are committed to making further improvements to every aspect of our business.”

Nasdaq had threatened to delist the company if it didn’t file late earnings reports for 2007 and the first two quarters of 2008, which it has now done.

For 2007, the company reported a 54% decline in profit despite a major increase in sales. Force Protection reported net income of $7.7 million in 2007, or 11 cents a share, compared with $16.6 million in 2006, or 36 cents a share.

After releasing its first- and second-quarter reports for 2008, the company’s stock has risen 31% to $3.50 per share, after closing Tuesday at $2.68.