03 May 13. ITT Exelis (XLS) reported first-quarter 2013 financial results. First-quarter revenue was $1.2bn, compared to $1.4bn in the first quarter of 2012. Operating income was $74m and net earnings were $0.23 per diluted share, compared to $138m and $0.37 per diluted share during the same period in 2012. As expected, results for the first quarter of 2013 were impacted by $49m in restructuring charges incurred by the company as it aligns its headcount, footprint and cost structure more closely with customer and market conditions. Significant new orders announced during the first quarter of 2013 included a $102m contract to provide electronic support measures suites for two classes of Australian warships; a multimillion dollar contract to provide South Korea with an advanced geostationary weather imager; the company’s first base operations contract for the U.S. Navy in Deveselu, Romania; and multiple international orders, totaling more than $40 m, for communications equipment and sustainment. Exelis also completed the acquisition of C4i Pty. Ltd., an Australian company that provides advanced communications software that is integral to air traffic management systems and mobile communications solutions around the globe.
“Our first quarter results were in line with expectations. We secured several significant orders from international customers and our restructuring efforts are proceeding on schedule,” said Exelis CEO and President David F. Melcher. “While challenges and uncertainties remain within the U.S. defense and aerospace market, we continue to focus on cost improvement, operational efficiency and delivering value to our customers and shareholders.”
Segment Results
C4ISR Electronics and Systems C4ISR Electronics and Systems first-quarter 2013 revenue was $499m, compared to $653m during the same period in 2012, mainly due to decreased sales of SINCGARS, night vision and counter-IED products, partially offset by increased international demand for airborne electronic warfare equipment. Segment operating income for the quarter was $19m, versus $91m for the first quarter of 2012, primarily driven by volume declines and restructuring charges taken in the segment during the first three months of 2013.
Information and Technical Services
Information and Technical Services first-quarter 2013 revenue was $686m, compared to $768m in the first quarter of 2012, primarily due to decreased activity on several Information Systems and Middle East facility operations programs. Segment operating income for the quarter was $55m, compared to $47m for the same period in 2012, positively impacted by contract productivity improvements, but partially offset by higher restructuring charges.
2013 Guidance
Exelis also reaffirms its previously published guidance for 2013 sales, operating margin, earnings per share and free cash flow. (Source: Yahoo!/BUSINESS WIRE)
30 Apr 13. Harris Corporation (HRS) reported revenue in the third quarter of fiscal 2013 of $1.20bn compared with $1.37bn in the prior year. GAAP income from continuing operations was $125m, or $1.12 per diluted share, compared with $155m, or $1.38 per diluted share. Non-GAAP income from continuing operations in the prior year was $163m, or $1.42 per diluted share. Orders in the third quarter were $1.13bn compared with $1.48bn in the prior year. The company generated strong free cash flow of $185m in the third quarter compared with $152m in the prior year.
“Third quarter results were in line with our preliminary release issued April 11 and weaker than previously expected primarily due to U.S. and international tactical radio procurement delays,” said William M. Brown, president and chief executive officer. “U.S. Government funding constraints resulting from the continuing resolution were magnified when sequestration was triggered. Additionally, in the international market several key tactical radio orders have been pushed to later in the year or early next fiscal year. We rec