L3Harris Reports Third-Quarter Financial Results
Wednesday, October 30, 2019 | Comments

L3Harris Technologies reported third-quarter 2019 revenue of $4.4 billion, up 10% compared with prior-year combined revenue. Net income increased 104% to $435 million.

"L3Harris is off to a great start as a new company and delivered strong third-quarter results with double-digit revenue growth and strong margin expansion, including the benefit of integration, and returned more than $900 million to shareholders in dividends and share repurchases," said William M. Brown, chairman and CEO. "These results, together with strong first half combined performance, successful execution against our strategic priorities and solid backlog, give us confidence to raise EPS (earnings per share) guidance for the year."

Revenue increased 10% for the quarter and year-to-date versus prior-year combined revenue, with double-digit growth across Integrated Mission Systems, Space and Airborne Systems, and Communication Systems.

Third quarter revenue for Communications Systems increased 11% driven by strong growth in tactical communications, integrated vision systems and public safety. Tactical communications revenue grew 19% with Department of Defense (DoD) tactical up 33% from a ramp in U.S. DoD modernization programs and international tactical up 9% from increased demand in Europe.

Operating income for the business unit increased 18% to $234 million, and margin expanded to 22.7%, from higher volume and strong operational performance, partially offset by mix.

Public safety expanded its customer base with a $76 million award from Duke Energy to provide a multistate, critical communications solution for one of the largest electric utilities in the U.S., supporting more than 12,000 users.

Year-to-date segment revenue increased 11% with a funded book-to-bill of 1.09. Tactical communications revenue grew 17% and funded backlog increased by 17% to $1.1 billion. Segment operating margin expanded to 21.9%.

As a result of strong year-to-date performance, L3Harris updated its second half calendar year 2019 guidance with revenue of about $9.2 billion, up about 10% from combined second half calendar 2018, operating cash flow of about $834 million and adjusted free cash flow of about $1.35 billion.

Full calendar year 2019 guidance includes revenue of about $18.1 billion, up about 10% from combined full year calendar 2018, and operating cash flow of about $1.95 billion.

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