ITT Exelis [XLS] on Friday posted higher sales but lower income in the first quarter as costs related to its spin-off from ITT Corp. [ITT] and higher interest expense weighed on earnings.

Net income in the quarter fell 15 percent to $70 million, 37 cents earnings per share (EPS), from $82 million (44 cents EPS). Still, adjusted operating income increased 29 percent to $151 million (47 cents EPS), beating consensus estimates by a nickel.

Sales rose 6 percent to $1.4 billion from $1.3 billion, as a gain in revenue from the Information and Technical Services segment more than offset a decline in revenue at the C4ISR Electronics and Systems Segment.

Exelis left its financial guidance intact for the year, with sales expected to be down 7 percent to between $5.4 billion and $5.5 billion and adjusted EPS between $1.80 to $1.86.