Federal Signal CEO Discusses Q3 2010 Results - Earnings Call Transcript
I will give a brief review of our results for the quarter then, I'll turn the call over to Dennis Martin for his comments. After that we'll have some time for your questions.
As discussed in our earnings release this morning, the company's markets remain mixed. Our industrial focused businesses continue to see strong orders in the quarter; all our businesses that are more focused on municipal markets continue to be challenged.
Total company orders for Q3 increased 11% versus last year. Excluding the impact of recent acquisitions which were not in our portfolio last year orders increased 6%. To illustrate the difference in our market several of our industrial businesses achieved double-digit order growth for the quarter and for the year-to-date.
Our core industrial safety products, JetStream waterblasters and our Vactor Guzzler division that would sell sewer cleaners and vacuum trucks. Combined that these businesses accounted for over 40% of the company's total Q3 orders.However, we saw double-digit declines in Q3 orders for several of our municipal focused businesses including lightbars and sirens in both the U.S. and European markets and our Bronto Skylift business. Q3 orders for Elgin street sweepers were flat to last year but were down more than 20% versus the order rate we saw in the first half of the year. Our FSTech businesses generated $27 million of revenue in the third quarter flat to what was achieved in the second quarter. While the timing has domestic projects are slipped, we expect these projects to come to fruition in the near future. In addition, we have seen some good development in the international markets with revenue for the Thailand Electronic Vehicle Registration project accelerating. We've also received some initial orders from India. We expect to see continued growth in our industrial focused businesses and in our FSTech division in Q4 and into 2011 but we also expect to see a continuation of challenging conditions in municipal focused businesses.
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