Harris reports quarterly loss

Harris Corp. today reported a loss of $152 million in its most recent quarter, following a non-cash charge of $328 million to write down goodwill and other assets of its CapRock business because of the downturn in the energy market.

The company reported quarterly sales of $1.8 billion, up from $1.2 billion in the same period a year earlier. The company said its sales benefited from the acquisition of Exelis.

Bill Brown, Harris' chief executive, told analysts during a call this morning the company continues to undertake portfolio shaping and is in the process of divesting the aerostructures business it acquired with the purchase of Exelis.

To adapt the CapRock business, which specializes in satellite telecommunications, to tougher times, Brown said Harris has cut the unit's headcount by about 35 percent in the last 18 months.

"Our goal is to rightsize the business in line with market conditions," he said.

Harris executives said today they also are increasing their estimated cost savings following the Exelis acquisition from an annual savings of $120 million to between $140 million and $150 million by the end of fiscal year 2017. The contractor attributed the increased cost savings to cuts to the company's footprint as well as supply chain changes.