DRS Technologies Raises Outlook

PARSIPPANY, N.J. (AP) -- Military contractor DRS Technologies Inc. on Friday raised its earnings guidance for the fiscal year, saying realigning its businesses made the company more efficient.

DRS Technologies now expects fiscal 2007 earnings of $2.98 per share to $3.05 per share, compared with a previous forecast of $2.83 per share to $2.90 per share. It expects revenue of $2.7 billion to $2.75 billion, which is unchanged from its earlier outlook.

Analysts polled by Thomson Financial look for profit of $2.89 per share on revenue of $2.8 billion.

The company earned $2.67 per share on revenue of $1.74 billion in fiscal year 2006.

DRS Technologies Chairman and Chief Executive Mark S. Newman said the company raised its guidance because realigning the company's four business segments created greater efficiency between in its various business groups in pursuing new business and sharing resources. Newman also cited "a climate of strong funding for core and supplemental defense budgets."

Shares of DRS Technologies lost 98 cents at $54.87 in morning trading on the New York Stock Exchange.