L-3 expects sales decline in 2016

Though L-3 Communications expects the Pentagon budget to resume growing in fiscal year 2016, the company says its business units will see revenue decline during the year, according to new slides posted today to coincide with the company's investor meeting.

The contractor reported its electronic systems business is expected to post 2016 sales of $4.2 billion to $4.3 billion, down 2 percent from 2015, while its aerospace systems business has anticipated revenue of $3.9 billion to $4 billion, down 4 percent from the prior year. The communications systems business is expected to report sales of $1.9 billion to $2 billion, down 4 percent from 2015.

In 2016, L-3 expects U.S. government sales to make up 72 percent of sales, while international and commercial business will each comprise about 14 percent. The company attributed its anticipated organic growth decline to a 15 percent reduction in international sales.

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