ITT Exelis [XLS] on Friday posted lower earnings and sales in its second quarter and the company reaffirmed its financial guidance for 2012.
Net income slid 9 percent to $78 million, 41 cents earnings per share (EPS), from $86 million (46 cents EPS), but still topped consensus estimates by four cents. Lower sales overall and restructuring charges at the company’s C4ISR Electronics and Systems segment drove the decline in net income.
 |
| AN/PVS-23 Night Vision Binoculars. Photo by ITT Exelis |
Sales dipped 7 percent to $1.3 billion from $1.4 billion as both the C4ISR Electronics and Systems, and Information and Technical Services (I&TS) segments posted lower revenues. Orders were $1.4 billion in the quarter.
At the C4ISR segment, sales were off on domestic night vision and counter-improvised explosive device products while at the I&TS segment decreased activity on Middle East facility operations programs drove the decline.
The outlook for sales this year remains at between $5 billion and $5.1 billion with earnings between $1.45 and $1.55 EPS. Free cash flow is expected to be greater than $225 million.
The company said that beginning in November it will go by Exelis, removing the ITT name that it has carried since 2011 when it was spun out of ITT Corp. [ITT].