Federal Signal Expects To Post 1st-quarter Profit

OAK BROOK, Ill. (AP) — Federal Signal Corp., which makes security systems, said Monday it expects to post a profit for the first-quarter because of lower-than-expected litigation and other costs.

It said in late February that it would post a loss for the period.

Federal Signal now expects earnings from continuing operations between 1 and 3 cents per share. Analysts polled by Thomson Reuters, on average, expect the company to report a loss of 6 cents per share.

"Our team's commitment has helped Federal Signal generate a first-quarter profit despite the difficult economic environment," President and Chief Executive William H. Osborne said. "Costs associated with the hearing loss litigation were lower than expected, and we reduced the fixed cost structure at many of our businesses. We are well on our way to achieving our cost-cutting targets."

Federal Signal expects to release earnings on May 1 for the first quarter.

The stock fell 8 cents to close at $6.06 in the regular session, but jumped 49 cents, or 8.1 percent, in aftermarket activity to $6.55.