L3Harris reports sales, profit declines

By Marjorie Censer / January 29, 2021 at 3:44 PM

L3Harris Technologies said today sales in its most recent quarter reached $4.7 billion, down almost 4% from the same three-month period a year earlier.

The contractor said it saw sales growth in its space and airborne systems and communications systems segments, but that was offset by a decline in its aviation systems unit, primarily because of the COVID-19 pandemic.

The contractor reported quarterly profit of $184 million, down 54% from the prior year. L3Harris said the pandemic has resulted in a "severe decline in global air traffic" that has hurt the commercial aviation market and "significantly reduced demand for flight training, flight simulators and commercial avionics products in the company's Aviation Systems segment's Commercial Aviation Solutions sector."

"As a result, the company temporarily closed some of its flight training facilities, initiated restructuring and other actions to align its resources with the outlook for the commercial aviation market (including workforce reduction and facility consolidation) and also has recognized $767 million of charges for impairment of goodwill and other assets and other COVID-related impacts for full-year 2020," L3Harris said.