[opendtv] News: Harris Swings To 3Q Loss On Write-Down; To Sell Broadcast Communications Unit
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Mon, 7 May 2012 08:37:17 -0400
Harris Swings To 3Q Loss On Write-Down; To Sell Broadcast Communications Unit
DOW JONES NEWSWIRES
Harris Corp. (HRS) swung to a fiscal third-quarter loss as the
military contractor unveiled plans to sell its broadcast
communications unit and booked a large write-down on the business in
the latest quarter.
The company also narrowed the high and low ends of its full-year
earnings estimate by 5 cents, now projecting $5.15 to $5.25 a share,
and lowered its revenue guidance to $5.45 billion from its January
forecast of $6 billion to exclude revenue from broadcast
communications. Harris also forecast fiscal 2013 earnings from
continuing operations between $5.10 to $5.30 a share on flat to a 2%
rise in revenue. Analysts surveyed by Thomson Reuters expect $5.29 a
share on a 2% revenue increase to $6.11 billion.
The communications and information-technology company has been
diversifying its businesses through acquisitions in recent years as
constrained government spending dampens Defense Department orders and
revenue.
After reviewing its business portfolio, Harris on Tuesday said it
decided the broadcast communications business was no longer aligned
with its long-term strategy. The company plans to use proceeds from
the units sales to return cash to shareholders and to invest in its
core businesses.
For the quarter ended March 30, Harris reported a loss of $353.2
million, or $3.15 a share, compared with a profit of $139.5 million,
or $1.09 a share, a year earlier. Excluding items such as
acquisition-related costs, adjusted earnings from continuing
operations rose to $1.39 a share from $1.18. Revenue jumped 4.5% to
$1.48 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.32 a share on revenue of $1.47 billion.
Revenue from the radio-frequency communications segment fell 2.2% to
$538 million. Revenue in the integrated network solutions segment
grew 8.2% to $500 million and government communications systems
revenue was up 9.3% to $471 million.
Shares closed Monday at $45.54 and were inactive premarket. The stock
has risen 26% so far this year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@xxxxxxxxxxxx
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