L3HARRIS TECHNOLOGIES, INC. /DE/ Quarterly Report for Q1 Ended Mar 29, 2019

Summary

L3Harris Technologies, Inc. (LHX) reported a strong third quarter for fiscal year 2019, with revenue increasing by 11% year-over-year to $1.73 billion and income from continuing operations rising by 23% to $243 million. Diluted earnings per share also saw a significant increase of 24% to $2.02. This growth was driven by solid performance across all three business segments: Communication Systems, Electronic Systems, and Space and Intelligence Systems. The company also reported a substantial increase in net cash provided by operating activities, up 280% to $874 million for the first three quarters of the fiscal year, indicating improved operational efficiency and working capital management. The company is progressing towards its planned merger with L3, which was approved by shareholders of both companies on April 4, 2019. The merger is expected to close mid-calendar year 2019. Concurrently, LHX entered into an agreement to sell its Night Vision business for $350 million, with proceeds intended for pension funding and shareholder returns. These strategic moves, combined with strong operational results, position L3Harris for future growth and value creation.

Key Highlights

• 1Revenue increased 11% to $1.73 billion in Q3 FY19 compared to Q3 FY18.
• 2Income from continuing operations grew 23% to $243 million in Q3 FY19.
• 3Diluted earnings per share increased 24% to $2.02 in Q3 FY19.
• 4Net cash provided by operating activities surged by 280% to $874 million for the first three quarters of FY19.
• 5All three business segments (Communication Systems, Electronic Systems, Space and Intelligence Systems) reported revenue and operating income growth.
• 6Shareholder approval for the merger with L3 was obtained on April 4, 2019, with an expected closing in mid-calendar year 2019.
• 7Agreement to sell the Night Vision business for $350 million announced on April 4, 2019.

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