Rypht
05-13-2006, 04:47 AM
Army deals blow to body armor maker DHB Industries
BY JAMES BERNSTEIN
Newsday Staff Writer
May 10, 2006, 10:02 AM EDT
In what could be the biggest challenge yet to financially-struggling body armor maker DHB Industries Inc., the Army today said it is looking for companies to design an entire new generation of such equipment to replace the Westbury-based manufacturer's Interceptor vest.
The Army said it wants ideas from companies by May 31 "to improve on and replace" DHB's Interceptor Body Armor.
DHB, one of the country's largest makers of body armor for U.S. troops, can also submit new designs, but it is likely to face increased competition, according to industry watchers.
Larry Ellis, DHB's president, told Newsday.com this morning the company is already working on designs to compete for the next-generation Interceptor vest.
"Quite frankly, I think we've got the best design out there," said Ellis, a retired Army four-star general. "We did the first (Interceptor) and continue to do them." Ellis said DHB has no guarantee of winning a contract for the next-generation of vests.
But, he said, "We have a good chance of winning. We know more about that vest than anyone."
Ellis said the Army has not disclosed how much such a contract would be worth to the winning company, or when a winner would be selected.
"We're well into it," Ellis said. "We've got one of the best R&D teams around."
Armor Holdings Inc. and Ceradyne Inc. are both likely to enter any such competition to replace DHB's Interceptor, now in use by troops in Iraq and Afghanistan. The Interceptor vest is also used by the New York City police department and other law-enforcement agencies.
The Army said it wants a lighter next-generation body armor system that is more comfortable, while also improving a soldier's ability to move about a battlefield. The next-generation item would also have to make it easier to carry fighting loads.
DHB's vest consists of an outer tactical garment with yoke and collar, throat and groin protectors, and removable small arms protective inserts.
The Army says the next-generation vests must allow soldiers to easily enter and exit emergency combat vehicles. It must also have a way to cut off the complete body armor system in an emergency, such as an injury caused by a bullet or a knife.
The Army said all designs will be considered.
This announcement is only the latest blow to DHB.
The company said in April that it may have to re-state its earnings for "one or more" of the first three quarters of last year. It has also said it must delay the release of its annual report.
Congressional investigators say they are reviewing the Pentagon's entire body armor program, including the Interceptor vest made by DHB's Point Blank Armor subsidiary in Southern Florida. Investigators say they are worried the vests might not be adequate to protect troops. DHB says it stands by its products.
DHB has also been hit by multiple shareholder suits alleging a "pump and dump" scheme designed to earn top executives large sums from stock sales while they issued "false and misleading" statements about the company's financial prospects. DHB has denied any wrongdoing.
http://www.newsday.com/business/ny-bzdhb0511,0,6522238.story?coll=ny-business-leadheadlines
BY JAMES BERNSTEIN
Newsday Staff Writer
May 10, 2006, 10:02 AM EDT
In what could be the biggest challenge yet to financially-struggling body armor maker DHB Industries Inc., the Army today said it is looking for companies to design an entire new generation of such equipment to replace the Westbury-based manufacturer's Interceptor vest.
The Army said it wants ideas from companies by May 31 "to improve on and replace" DHB's Interceptor Body Armor.
DHB, one of the country's largest makers of body armor for U.S. troops, can also submit new designs, but it is likely to face increased competition, according to industry watchers.
Larry Ellis, DHB's president, told Newsday.com this morning the company is already working on designs to compete for the next-generation Interceptor vest.
"Quite frankly, I think we've got the best design out there," said Ellis, a retired Army four-star general. "We did the first (Interceptor) and continue to do them." Ellis said DHB has no guarantee of winning a contract for the next-generation of vests.
But, he said, "We have a good chance of winning. We know more about that vest than anyone."
Ellis said the Army has not disclosed how much such a contract would be worth to the winning company, or when a winner would be selected.
"We're well into it," Ellis said. "We've got one of the best R&D teams around."
Armor Holdings Inc. and Ceradyne Inc. are both likely to enter any such competition to replace DHB's Interceptor, now in use by troops in Iraq and Afghanistan. The Interceptor vest is also used by the New York City police department and other law-enforcement agencies.
The Army said it wants a lighter next-generation body armor system that is more comfortable, while also improving a soldier's ability to move about a battlefield. The next-generation item would also have to make it easier to carry fighting loads.
DHB's vest consists of an outer tactical garment with yoke and collar, throat and groin protectors, and removable small arms protective inserts.
The Army says the next-generation vests must allow soldiers to easily enter and exit emergency combat vehicles. It must also have a way to cut off the complete body armor system in an emergency, such as an injury caused by a bullet or a knife.
The Army said all designs will be considered.
This announcement is only the latest blow to DHB.
The company said in April that it may have to re-state its earnings for "one or more" of the first three quarters of last year. It has also said it must delay the release of its annual report.
Congressional investigators say they are reviewing the Pentagon's entire body armor program, including the Interceptor vest made by DHB's Point Blank Armor subsidiary in Southern Florida. Investigators say they are worried the vests might not be adequate to protect troops. DHB says it stands by its products.
DHB has also been hit by multiple shareholder suits alleging a "pump and dump" scheme designed to earn top executives large sums from stock sales while they issued "false and misleading" statements about the company's financial prospects. DHB has denied any wrongdoing.
http://www.newsday.com/business/ny-bzdhb0511,0,6522238.story?coll=ny-business-leadheadlines