Harris Corporation Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 29, 2017; Revised Earnings Guidance for the Fiscal 2018
January 30, 2018 at 11:42 am
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Harris Corporation announced unaudited consolidated earnings results for the second quarter and six months ended December 29, 2017. For the quarter, the company reported revenue from product sales and services was $1,535 million against $1,449 million a year ago. Operating income was $272 million against $277 million a year ago. Income from continuing operations before income taxes was $229 million against $235 million a year ago. Income from continuing operations was $139 million against $163 million a year ago. Net income was $139 million against $177 million a year ago. Diluted earnings per share from continuing operations were $1.15 against $1.30 a year ago. Diluted earnings per share were $1.15 against $1.40 a year ago. Non-GAAP diluted earnings per share from continuing operations were $1.67 against $1.38 a year ago. Net cash provided by operating activities was $278 million against $252 million a year ago. Capital expenditure was $20 million against $28 million a year ago. Non-GAAP operating income was $284 million against $290 million a year ago.
For the six months, the company reported revenue from product sales and services was $2,948 million against $2,869 million a year ago. Operating income was $544 million against $523 million a year ago. Income from continuing operations before income taxes was $460 million against $438 million a year ago. Income from continuing operations was $306 million against $308 million a year ago. Net income was $300 million against $337 million a year ago. Diluted earnings per share from continuing operations were $2.52 against $2.45 a year ago. Diluted earnings per share were $2.47 against $2.68 a year ago. Net cash provided by operating activities was $373 million against $295 million a year ago. Additions of property, plant and equipment was $43 million against $49 million a year ago. Non-GAAP diluted earnings per share from continuing operations were $3.05 against $2.66 a year ago. Non-GAAP operating income was $556 million against $553 million a year ago.
As a result of the company's strong first half performance and benefits from tax reform, the company has updated its guidance for fiscal 2018 to the following: revenue in a range of $6.08 - 6.14 billion, up 3 - 4% from fiscal 2017 tightened from previous guidance of $6.02 - 6.14 billion, up 2 - 4%. Gaap eps from continuing operations in a range of $5.78 - $5.98 and non-gaap eps from continuing operations in a range of $6.30 - $6.50, an increase from previous guidance of $5.85 - $6.05 gaap and non-gaap. Free cash flow of approximately $900 million tightened from previous guidance of $850 - 900 million. Tax rate of approximately 28% gaap; 23% non-gaap, a decrease from approximately 28.5% previously, including a half-year benefit of 5 percentage points from tax reform.
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 Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 29, 2017; Revised Earnings Guidance for the Fiscal 2018