Exelis sees drop in revenue, profit
THE TAKE: Defense and aerospace firm Exelis Inc. reported a drop in profit from a $13 million restricting charge during the second quarter, and revenues also dipped in a tough year for the defense industry.
REVENUE: The McLean-based company said total revenue for the second quarter was $1.25 billion, down 9.2 percent from $1.38 billion a year ago. Revenue in the company’s C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) Electronic Systems fell to $518 million, from $620 million during the second quarter of 2012. The decrease was mostly because of a drop in domestic sales of night vision goggles and counter improvised explosive device (IED) products. The company’s information and technical services unit reported revenue of $733 million during the quarter, compared with $759 million the year before. The decrease came from less activity at the Middle East facility operations.
PROFIT: Profit during the second quarter was $78 million, or 41 cents per diluted share, down from $86 million, or 46 cents per share, the year before.
THE COMPANY’S TAKE: “During the second quarter, we demonstrated particular success in both retaining core programs and in securing a wide variety of new business across both segments,” Exelis CEO and President David F. Melcher said in a statement. “We remain on-track to deliver results in line with our expectations for 2013 and will continue to proactively align our strategy and operations with the market environment to deliver affordable, world-class solutions for our customers.”