ITT Exelis [XLS] on Friday posted lower income and sales in its third quarter due to lower volume across its two business segments with the results basically in line with analyst’s expectations.
Net income slipped 13 percent to $88 million, 47 cents earnings per share (EPS), from $101 million (54 cents EPS) a year ago. Adjusted EPS were 45 cents in the quarter, a penny above estimates.
Sales fell 11 percent to $1.4 billion from $1.5 billion a year ago. Sales in Exelis’ C4ISR Electronics Systems segment dropped 18 percent to $611 million due to lower demand for night vision goggles, jammers and radios as expected.
The C4ISR segment also posted a 23 percent decline in operating profit to $87 million due to the lower sales and a sales mix weighted toward lower margin work.
The Information and Technology Services segment posted a 5 percent drop in sales to $750 million following the completion of an information systems contract last year and less activity on two international services contracts. Segment operating profit increased 19 percent to $69 million due to productivity improvements and lower discretionary expenses.
Orders in the quarter were $1.3 billion while total backlog stood at $10.5 billion, level with the end of the second quarter. Free cash flow was $167 million.
Exelis reconfirmed its guidance for 2012, saying sales are expected to be at the high end of the previously announced $5.4 billion to $5.5 billion range.