Exelis (NYSE: XLS) today reported third-quarter 2013 revenue of $1.1 billion, compared to $1.4 billion in the third quarter of 2012. Operating income was $133 million and net income was $0.41 per diluted share, compared to $143 million and $0.47 per diluted share during the same period in 2012. Orders received in the third quarter of 2013 totaled $2 billion, a 48 percent improvement from the third quarter of 2012. Orders benefited from significant funded orders for Middle East region programs in the Information and Technical Services segment.
Highlights from the quarter include announced awards of more than $140 million in communication systems and night vision equipment for international customers and low rate initial production orders totaling $60 million for carriage and release systems for the F-35 Lightning II. Also announced during the quarter was the delivery of an integrated, super-spectral payload to DigitalGlobe for the WorldView-3 satellite.
„During the third quarter, we demonstrated success in utilizing our installed base to drive strategic new orders,” said Exelis CEO and President David F. Melcher. „In spite of complex economic pressures, our customers continue to value our ability to deliver mission critical and affordable products and services. We continue to proactively align our business to the dynamic market environment and enable future investment in our strategic growth platforms.”
C4ISR Electronics and Systems
C4ISR Electronics and Systems third-quarter 2013 revenue was $498 million, compared to $611 million during the same period in 2012, mainly due to decreased domestic sales of counter-IED products and legacy night vision equipment, partially offset by sales of Spiral Enhanced Night Vision Goggles and classified programs. Segment operating income for the quarter was $69 million, versus $84 million for the third quarter of 2012, primarily driven by volume declines and increased pension expense partially offset by cost cutting initiatives.
Information and Technical Services
Information and Technical Services third-quarter 2013 revenue was $643 million, compared to $750 million in the third quarter of 2012, primarily due to decreased activity on Afghanistan contracts, partially offset by increased activity in Federal Aviation Administration programs. Segment operating income for the quarter was $64 million, compared to $59 million for the same period in 2012, driven by contract productivity improvements and strong contract performance resulting in higher award fees.
Exelis also updated its previously published guidance for 2013 revenue and operating margin.
Current Update August 2013 Guidance
Revenue $4.9 billion – $5.0 billion $5.0 billion – $5.1 billion
Operating Margin High end of range 9.4% – 9.8%
Earnings Per Share No change $1.45 – $1.55
Free Cash Flow No change > $225 million
The company’s 2013 financial guidance includes approximately $85 million of projected restructuring expense. FAS pension expense for the year is projected in the range of $80 million to $90 million, at the midpoint, an increase of approximately $53 million from the prior year. The company anticipates generating free cash flow in excess of $225 million after making pension contributions of approximately $146 million.
Source / Author: Exelis