L-3 Communications [LLL] yesterday reported solid second quarter earnings and sales aided in part by some one-time gains and to a lesser extent some acquisitions.
Net income increased 48 percent to $278 million, $2.24 earnings per share (EPS), from $188 million ($1.49 EPS). Several items, two gains and a non-cash impairment charge, added $71 million (57 cents EPS) to the results. Excluding the one-time items, earnings were up 9 percent to $207 million ($1.67 EPS).
Sales increased 9 percent to $3.7 billion from $3.4 billion, with 6 percent of the growth organic. Each of the company’s segments reported sales gains but the growth was mainly driven by the Specialized Products and C3ISR segments.
In Specialized Products the higher sales were attributed to power & control systems mostly for commercial shipbuilding, microwave products due to higher demand and deliveries of mobile communications systems and satellite and space components for the United States military, electro-optic/infrared products, precision engagement products, increased demand for premium fuzing products, and security and detection systems primarily for international customers.
In C3ISR growth was driven by Defense Department demand for airborne ISR and networked communication systems for manned and unmanned platforms.
For the year, L-3 increased its sales guidance to at least $14.7 billion and upped its EPS guidance, including the second quarter gains, by 15 cents to between $7.28 and $7.32.