Harris reports sales, profit gains

By Marjorie Censer / July 31, 2018 at 9:50 AM

Harris said today sales during its most recent quarter reached $1.7 billion, up 8 percent from the same three-month period a year earlier. The company's chief executive called it the highest revenue growth in the last seven years.

The contractor's quarterly profit hit $217 million, up almost 66 percent from a year earlier.

Harris' communications systems business saw the steepest sales growth, as revenue increased 16 percent in the quarter.

The company said its tactical communications revenue surged 21 percent, thanks to Pentagon "readiness and modernization demand" and growth in the Middle East and Asia Pacific. Army demand drove higher sales in its night-vision business, Harris said.

During a call with analysts Tuesday morning, Bill Brown, Harris' chief executive, said the company has increased its independent research and development spending, which now represents slightly more than 5 percent of revenue.

"It's going to go up again a little bit in fiscal 2020," he added, noting the company has seen new opportunities in areas like robotics.

Brown argued some of the contractor's areas of growth have stemmed from past IRAD investments.

Oshkosh's defense group sees sales drop

Meanwhile, Oshkosh said today quarterly sales in its defense segment reached $443 million, down 8 percent from the same three-month period a year earlier.

"The decrease in sales was due to the absence of international Mine Resistant Ambush Protected-All Terrain Vehicle (M-ATV) sales in the third quarter of fiscal 2018, offset in part by the continued ramp up of sales to the U.S. government under the Joint Light Tactical Vehicle (JLTV) program and higher Family of Medium Tactical Vehicles (FMTV) sales," the company said.

The defense unit's quarterly profit hit $48 million, down 24 percent. Oshkosh attributed the decline to lower sales, but said it did see "improved manufacturing performance and lower warranty costs."

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