Harris reports increased sales, lower profit

By Marjorie Censer / January 30, 2018 at 9:49 AM

Harris said today sales in its most recent quarter hit $1.5 billion, up 6 percent from the same three-month period a year earlier.

However, the contractor's quarterly profit reached $139 million, down from $177 million the prior year.

Harris said it saw significant growth in its communication systems segment. The business reported an 18 percent increase in quarterly sales, driven by a 56 percent boost in Defense Department tactical sales.

The company attributed the increase to "readiness demand across all the services and a 9 percent increase in international tactical revenue from strong growth in the Middle East."

Harris' space systems unit saw quarterly sales decline 1 percent. The contractor said classified programs provided higher sales, but they were offset by lower sales on environmental programs.

The company announced today that, following the new tax legislation, it will contribute $300 million more to its employee pension fund. Additionally, Harris plans to invest an incremental $20 million in research and development "to accelerate innovation and affordability initiatives." The company pointed to small satellites, software-defined electronic warfare systems, open systems avionics, robotics and air traffic management as areas of interest.

Also, Harris said it plans to grant each of its 17,000 non-executive employees 10 shares of Harris common stock. The grants are worth about $1,470 each and will vest over two years.