DOW JONES NEWSWIRES
Harris Corp.'s (HRS) fiscal first-quarter profit dropped 12%,
but the communications-products company's RF communications and
Government Communications Systems segments topped its
expectations.
Reflecting much stronger orders for tactical radios than
expected, the company also again raised its fiscal-year targets; it
now sees adjusted earnings of $3.85 to $3.95 a share on revenue of
$5.1 billion to $5.2 billion. In August, Harris expected $3.40 to
$3.50 a share on revenue of $5 billion to $5.1 billion.
Shares rose 5.4% after-hours to $39.98. The stock was up just
5.5% this year through the close, but up 29% from a year ago.
The company's business generally has been resilient during the
recession, partly because of its government contracts. The RF
Communications segment, which makes tactical radios, had been a
concern earlier this year.
For the quarter ended Oct. 2, the maker of digital multiband
radio used by the military posted a profit of $104.5 million, or 79
cents a share, down from $118.7 million, or 88 cents a share, a
year earlier. The latest quarter included 4 cents in acquisition
charges.
Revenue climbed 2.6% to $1.2 billion.
Analysts surveyed by Thomson Reuters expected earnings of 76
cents on revenue of $1.2 billion.
New orders were "strong" at $1.5 billion, the company said.
In the tactical radio business--known as RF Communications radio
business--profit fell 20%, while revenue improved 2%. In the larger
government communications-systems segment, earnings increased 29%
as revenue rose 9.6%.
-By John Kell and Jay Miller, Dow Jones Newswires; 212-416-2355;
john.kell@dowjones.com