02 May 14. Exelis (NYSE: XLS) reported financial results for the first quarter of 2014. First-quarter revenue was $1bn, a 12 percent decrease from the first quarter of 2013. First-quarter earnings were $52m, or $0.27 per share, a 17 percent increase from the first quarter of 2013. Adjusted earnings, which exclude costs related to the pending spin-off of the current Exelis Mission Systems business into an independent company that will be known as Vectrus, were $0.29 per share, a 26 percent increase from the same period in 2013. Free cash flow for the quarter was negative $160m, which includes $44m in cash returned to shareholders via dividends and share buybacks. The company reaffirms its full-year free cash flow expectations of approximately $250m. The company secured $1bn in orders during the first quarter of 2014, including significant new business in three of its four Strategic Growth Platforms, along with orders from a variety of international customers. Key contracts and agreements in the quarter included:
* Nearly $200m in awards for airborne electronic warfare equipment from the U.S. Navy, Turkey, Pakistan and other international customers.
* A multimillion-dollar order from a Japanese customer for the primary climate monitoring payload on the Greenhouse Gas Observing Satellite-2 (GOSAT)
* A $34m order from Sikorsky for composite assemblies for the Marine Corps CH-53K next-generation heavy lift helicopter
* $135 m in orders for night vision and communications equipment from a variety of customers, including international orders for $50m in i-Aware TMNVG night vision goggles
“We continued to earn new business from domestic and international customers in the first quarter of 2014 and profitability improved significantly in our C4ISR segment,” said Exelis CEO and President David F. Melcher. “We are also reaffirming our 2014 guidance and are looking forward to the successful spin-off of Vectrus this summer.”
Segment Results
C4ISR Electronics and Systems
C4ISR Electronics and Systems first-quarter 2014 revenue was $480m, down 4 percent from the same period in 2013 due to volume declines in domestic night vision and counter-IED jammer products, partially offset by a surge in sales of both international tactical radios and electronic warfare equipment to U.S. customers. Segment adjusted operating income for the quarter was $47m, an increase of 147 percent from the first quarter of 2013, due to lower restructuring charges compared to the same period in 2013.
Information and Technical Services
Information and Technical Services first-quarter 2014 revenue was $565 m, a decrease of 18 percent from the same period in 2013, driven by lower customer activity on U.S. government contracts in the Middle East and Afghanistan, slightly offset by increased revenue in Federal Aviation Administration programs. First-quarter adjusted operating income for the segment was $49m, down 11 percent from the same period in 2013.
Vectrus Spin-off
The company continues to progress on the separation of its current Mission Systems business into an independent, publicly traded company that will be known as Vectrus, Inc. The most current public information on the Vectrus spin-off can be found at www.exelisinc.com/transformation.
2014 Guidance
Exelis reaffirms previously issued 2014 financial guidance, which includes approximately $20m of projected restructuring expense and approximately $25m of expenses related to the planned spin-off of Vectrus. (Source: Yahoo!/BUSINESS WIRE)
08 May 14. Huntington Ingalls Industries (HII) reported first quarter 2014 revenues of $1.59bn, up 2.0 percent compared to the same period last year. First quarter diluted earnings per share was $1.81, compared to diluted earnings per share of $0.87 in the same period of 2013. Adjusted diluted earnings per share for the quarter was $1.53, compared to $1.17 in the comparable period of 2013. Segment operating income for the first quarter was $137m, compar