Federal Signal turns to first-quarter loss on lower sales, strike effects

Federal Signal posts 1Q loss, shares tumble

OAK BROOK, Ill. — Federal Signal Corp., the maker of fire trucks and safety gear, reported a unexpected first-quarter loss on Friday due to lower sales and the effects of a port workers strike in Finland. Its shares tumbled more than 15 percent.

Federal Signal also cited a lower backlog of orders in the quarter. It said the port workers strike hurt shipments for its skylift business.

CEO William H. Osborne said there was a 23 percent rise in new orders for existing businesses during the quarter and the company expects more growth throughout 2010.

“The improving revenue environment will enable us to leverage our recent and ongoing cost reduction initiatives and drive improved profits as we move forward,” he said.

The company said it lost $3.6 million, or 7 cents per share, fo the three months ended March 31 in contrast to a profit of $1 million, or 2 cents per share, in the year-ago quarter.

Sales dropped to 9.8 percent to $166 million from $184.7 million a year ago.

Analysts surveyed by Thomson Reuters had expected Federal Signal to post a quarterly profit of 10 cents per share on higher sales of $190 million.

Its shares dropped $1.56, or 15.3 percent, to $8.63 in afternoon trading Friday.