Record Quarter for Engineered Support Systems (Bucky Bush)

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Record Quarter for Engineered Support Systems
Engineered Support Systems (EASI :Nasdaq - news - research) reported record third-quarter earnings, thanks party to its government work in Afghanistan and Iraq, and reaffirmed future guidance.

The St. Louis-based company said net income rose by two-thirds to $20.5 million, or 73 cents a share, based on continuing operations, versus $12.4 million, or 48 cents a share in the year-ago period. Excluding charges related to the sale of a plant, the company had a profit of $21.3 million, or 76 cents a share. Analysts were expecting 75 cents a share, according to Thomson First Call.

Revenue rose 43% to a record $222.0 million "on the strength of recent acquisitions and exceptional organic growth," the company said.

The defense contractor also held to its 2004 fiscal forecast of EPS of $2.65 to $2.70 on revenue of $840 million. The consensus forecast is for $2.70 a share on revenue of $848.6 million.

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The Bush `Warbucks' Family Cashes In
by Margie Burns

William H.T. (``Bucky") Bush, an uncle of George W. Bush, is on the Board of Directors of a company which will benefit substantially from war with Iraq, according to financial analysts.
The company, Engineered Support Systems, is based in St. Louis. William H.T. Bush was also a major Bush donor and campaign fund-raiser.

Astute business articles have boosted the company's stock this fall. As Russ Mitchell, writing in Smart Money, put it: ``War may not be healthy for children and other living things (not in the short run, anyway), but it's healthy for military stocks, right?

``It depends on what you mean by health. Consider Engineered Support Systems, which makes biological and chemical filtering and decontamination equipment, among other things.

``Hundreds of stocks bombed to record lows, but Engineered Support was one of few to fly the other way, hitting a record high of $61.25 on Sept. 16.

``The closer the U.S. gets to war in Iraq, the better things look for the St. Louis, Mo., company. Its specialty is military logistics and support; it makes stuff that helps the services get supplies from here to there in a hurry.

http://www.commondreams.org/views03/0114-07.htm