L3Harris growth in third quarter offset by pandemic supply chain issues


L3Harris Headquarters in Melbourne, Florida. Photo: L3Harris

L3Harris TechnologiesThe space and airborne systems segment showed modest growth of 3% in the third quarter of 2021 compared to 2020, but the communication systems segment recorded a 6% decline in revenue for the quarter due to impacts on the market. Supply Chain.

The space and airborne systems segment reported revenue of $ 1.3 billion for the quarter. The company attributed the 3% growth to a rise in missile defense and other responsive programs.

L3Harris highlighted more than $ 225 million in awards for the quarter that could potentially lead to multi-billion dollar follow-up opportunities. The segment also won a multi-million dollar study contract for next-generation weather sounders in support of the U.S. National Oceanic and Atmospheric Administrationfuture system of geostationary satellites and extended observations.

Space and Airborne Systems’ orders-to-bill ratio is 0.98 and 1.05 for the quarter and year-to-date, respectively.

L3 Harris’ Communications Systems division, which includes its tactical satellite technology portfolio, reported third quarter revenue of $ 1 billion. The company attributed the 6% drop in revenue from 2020 to product delivery delays due to supply chain constraints within tactical communications, lower volume on older unmanned platforms in broadband communications, lead time in integrated vision solutions and contract cancellations in global communications. Solutions.

The company highlighted several awards in its tactical communications business, including $ 132 million and $ 72 million in initial full-scale production awards as part of the The American armyHMS Manpack and Leader two-channel IDIQ radio contracts. The broadband communications company received a follow-up award of $ 36 million to provide advanced airborne data link systems to the U.S. military and international parties.

Communication Systems’ orders / invoices ratio is 1.20 and 1.13 for the quarter and year to date, respectively.

Overall, L3Harris reported third quarter revenue of $ 4.2 billion, down 5% from a year ago, and down 1% on an organic basis, impacted by global shortages of electronic components. Communication systems and integrated mission systems drove the decline, which was partially offset by growth in space and airborne systems and aviation systems.

L3Harris has lowered its forecast for 2020 due to the effect of completed divestitures and global supply chain impacts. The revenue forecast for 2021 is now around $ 17.9 billion, compared to $ 18.1 billion to $ 18.5 billion in the August 2021 forecast.

“The L3Harris team delivered strong bookings, margins and net results in the quarter, overcoming revenue challenges due to supply chain delays and allocation schedule. And despite unprecedented global supply chain disruptions that reduce our organic revenue growth forecast for the year, we are able to meet our earnings and cash flow commitments, ”said Christopher E Kubasik, Vice President and CEO. “We ultimately view these pandemic-related impacts as temporary and remain focused on creating value for our stakeholders over the long term.”


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