L3Harris CEO: Reviewing potential divestitures 'is really top of mind to us'

By Marjorie Censer / July 31, 2019 at 10:10 AM

The newly combined L3Harris Technologies is evaluating which of its businesses might not fit following the completion of its merger, according to the company's chief executive.

In a call with analysts this morning, Bill Brown called reviewing the new company's portfolio a "top priority for the management team."

"A broader mix of businesses gives us an opportunity to take a fresh look at the combined company portfolio," he said, noting executives are looking "at what fits and what doesn't fit."

Brown said L3Harris executives are evaluating businesses "using a couple of different lenses," including whether a unit's technology is differentiating and whether it delivers good returns.

He said company leadership is also talking about the issue with L3Harris' board of directors.

"It's really top of mind to us," Brown added.

Meanwhile, Harris said today sales in its most recent quarter -- which ended just before the merger closed -- hit $1.9 billion, up about 12% from the same three-month period a year earlier.

The company's quarterly profit reached $268 million, up 26% from the prior year.