Harris Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months of Fiscal 2013; Revised Earnings Guidance for 2013
January 29, 2013 at 06:30 am EST
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Harris Corporation reported unaudited consolidated earnings results for the second quarter and six months ended December 28, 2013. For the quarter, the company's revenue from product sales and services were $1,286.9 million compared to $1,310.2 million for the same period in 2011. Income from continuing operations before income taxes were $200.2 million compared to $205.9 million for the same period in 2011. Income from continuing operations were $138.5 million or $1.25 per diluted share compared to $134.8 million or $1.18 per diluted share for the same period in 2011. Net income attributable to Harris Corporation was $48.5 million or $0.43 per diluted share compared to $133.1 million or $1.16 per diluted share for the same period in 2011. Free cash flow was $120 million against $159 million last year, with operating cash flow of $159 million compared to $199 million in the prior year and capital expenditures of $39 million compared to $41 million in the prior year.
For the six months, the company's revenue from product sales and services were $2,548.4 million compared to $2,646.3 million for the same period in 2011. Income from continuing operations before income taxes were $387.8 million compared to $398.2 million for the same period in 2011. Income from continuing operations were $266.8 million or $2.40 per diluted share compared to $265.4 million or $2.40 per diluted share for the same period in 2011. Net loss attributable to Harris Corporation was $37.3 million or $0.33 per basic and diluted share compared to net income attributable to Harris Corporation of $254.7 million or $2.16 per diluted share for the same period in 2011. Net cash provided by operating activities was $279.5 million compared to $278.0 million for the same period in 2011. Additions of property, plant and equipment was $79.9 million compared to $111.3 million for the same period in 2011. Additions of capitalized software was $2.8 million compared to $11.2 million for the same period in 2011.
The company reduced earnings guidance for 2013. For the period, due to expected slower government spending resulting from growing budget uncertainty, Harris has updated its fiscal 2013 guidance for income from continuing operations from a range of $5.10 to $5.30 per share to a range of $5.00 to $5.20 per share. Revenue is now expected to decline 2 to 4% compared to the prior year. The company now expects its tax rate for the fiscal year to decline from 33%, which already included the R&D tax credit, to 32% as a result of favorable U.S. and international tax settlements. The revised guidance for CapEx is now $200 million to $210 million. The company expects to generate another year of strong free cash flow in a range of $590 million to $650 million.
L3Harris Technologies, Inc. specializes in the design, manufacturing and marketing of information and communication equipment for the defense, government agency, and commercial structure markets. Net sales break down by family of products as follows:
- integrated mission systems (32.4%): intelligence, surveillance and reconnaissance systems, communication systems, electrical and electronic systems for marine platforms, advanced electro-optical and infrared solutions, etc. ;
- space and airborne systems (28.3%): payload systems, sensors, complete mission solutions, confidential intelligence systems, cyber defense solutions, electronic warfare systems, etc;
- communication systems (23.8%): tactical communication systems, broadband communications, integrated visual communications solutions, etc;
- aviation systems (15.5%): air defense systems, commercial aircraft equipment, pilot training solutions and air traffic management systems.
Net sales break down by source of income between sales of products (78.9%) and services (26.1%).
The United States account for 90.2% of net sales.
Harris Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months of Fiscal 2013; Revised Earnings Guidance for 2013