Some of the largest defense contractors today reported sales boosts in their most recent quarters.
L3 Technologies announced sales in its most recent quarter reached nearly $2.6 billion, up 8 percent from the same three-month period a year earlier. The contractor said its quarterly profit hit $375 million, up 86 percent from the prior year.
L3 noted that it recognized a gain from the sale of its Vertex Aerospace businesses during the second quarter.
The contractor's sensor systems business saw the largest increase in quarterly sales, posting a 22 percent boost from the prior year.
L3 attributed the sales increase to higher deliveries of night-vision products and airborne turret systems, primarily to foreign military customers; more commercial contracts in its marine systems area; and increased sales of mission management systems.
Chris Kubasik, L3's chief executive, said during a call with analysts this morning the communications system business "continues to be a challenge," but said its "long-term growth prospects are bright."
That unit reported a 1 percent sales boost during the quarter, but a 46 percent profit decline.
Part of that profit decline related to the sale of a property in California last year, while L3 also said it was related to lower volume at its broadband communication systems business.
Kubasik also said the contractor is working on a plan to consolidate from four sectors into three.
"We'll be finalizing this plan in August," he said. Kubasik added the contractor hopes to announce another acquisition within about a month.
Meanwhile, Raytheon said today quarterly sales hit $6.6 billion, up nearly 6 percent from the same three-month period a year earlier. Quarterly profit hit $800 million, up 45 percent from a year earlier.
Raytheon was buoyed by its intelligence, information and services business, which posted an 11 percent increase in sales and an 8 percent boost in profit during the quarter.
The contractor attributed the revenue increase to improved sales on classified programs, the Development, Operations and Maintenance -- or DOMino -- program and the Air and Space Operations Center Weapon System initiative.
Raytheon's Forcepoint business recorded quarterly sales of $148 million, up 7 percent from the prior year. However, the business announced an $8 million loss in the quarter, down from $2 million of profit a year earlier. Raytheon attributed the loss to higher operating costs.
Tom Kennedy, Raytheon's chief executive, said during a call with analysts today the company is seeing higher classified bookings. He attributed those sales to the National Defense Strategy and its call for investments to help the United States catch up to its peers in military technology.
Leidos sees sales drop
Leidos today reported sales in its most recent quarter reached $2.5 billion, down nearly 2 percent from the same three-month period a year earlier. Quarterly profit hit $144 million, up 47 percent from the prior year.
The company said its defense solutions business posted quarterly sales of $1.3 million, up 1 percent from the prior year.
"The revenue increase was primarily attributable to new awards, timing of revenue recognition on certain contracts, and improved program performance, partially offset by the completion of certain contracts," Leidos said.
Roger Krone, Leidos' chief executive, said during a call with analysts today the company opted to divest its commercial cybersecurity arm as a “result of our deliberate, strategic focus on providing services and solutions, including cyber, to our core markets: governments and highly regulated industries.”
Krone said he expects the transaction -- the unit is being sold to Capgemini -- to close by the end of the year.