Harris posts 2Q profit on strong segment results

(AP) — Harris Corp. on Wednesday said it moved to a fiscal second-quarter profit as the communications product maker held costs down and its two major business segments performed well.

The company, which makes radios and communication devices for military and commercial customers, also raised its full-year guidance, sending shares up in after-hours trading.

For the three months ended Jan. 1, Harris said net income was $139.5 million, or $1.06 per share, compared with a loss of $38.6 million, or 29 cents per share, in the year-ago period, which included a large write-down related to the company's holdings in a subsidiary.

Revenue for the quarter slipped 9 percent to $1.22 billion from $1.33 billion.

Analysts polled by Thomson Reuters, on average, expected profit of 95 cents per share on revenue of $1.3 billion.

The company's cost of product sales and services fell 16 percent to $778.6 million.

Revenue in Harris' RF Communications segment, which provides radios and related equipment to the military and other government agencies, rose 6 percent to $463 million. Among the major sales during the quarter was a $228 million order for new military vehicles headed to Afghanistan.

Revenue fell 14 percent to $647 million in its Government Communications Systems segment. The unit secured several international air traffic control communications contracts during the quarter.

Revenue in its broadcast communications segment rose 12 percent to $139 million.

Harris raised its profit forecast for the year, to a range of $4.13 to $4.23 per share, or $4.25 to $4.35 per share adjusted for acquisition-related costs. The company previously projected profit of $3.74 to $3.84 per share.

Revenue is now expected to range between $5.2 billion and $5.3 billion, the company said.

Analysts, on average, expect profit of $3.91 per share on revenue of $5.18 billion.

In aftermarket electronic trading, Harris shares rose $1.20, or 2.6 percent, to $48. The stock closed the regular session up $1.16, or 2.5 percent, at $46.80. It has traded between $25.71 and $49.67 in the past 52 weeks.