Component supplier Federal Signal Corp. said it expects to post lower than expected earnings for the second quarter because of continued weak U.S. commercial and industrial markets.
The Oak Brook, IL-based company has reduced its second quarter earnings estimate to between 23 and 24 cents per share, compared to analyst expectations of 35 cents per share.
Chairman & CEO Joseph Ross noted that its Fire Rescue division is showing improvement from very low first quarter levels. The division, which produces fire rescue vehicles, has a large backlog of orders resulting from order delays early in the fourth quarter of 2001, delays that are starting to be converted into sales.
However, second quarter profit margins remain below expectations because of lower sales of higher margin aerial devices, as well as delayed delivery of three customer fleet orders into the third quarter of this year, Ross said.
