L-3 Issues Q3 2005 Financials, Changes Reporting Structure
L-3 Communications (NYSE:LLL) today announced its results for Q3 of FY 2005, including sales of $2.5 billion, operating income of $266.5 million, diluted earnings per share of $1.11, and net cash from operating activities of $219.0 million. All represent an increase over the same quarter last year; full details may be found in L-3’s financial release.
During Q3 2005 third quarter, L-3 also revised the aggregation of its divisions into four reportable segments, to provide a more clearly defined presentation of L-3’s businesses. The company’s reportable segments are now:
- Government Services;
- Aircraft Modernization and Maintenance (AM&M); and
- Specialized Products
During Q3 2005, L-3 also integrated the Titan acquisition and its eight legacy business sectors. The reorganized L-3 Titan Group, led by Tony Frederickson, is now included in L-3’s reportable segments as follows:
- Intelligence Solutions, which provides support to the Department of Defense (DoD) and intelligence agencies;
- Technical & Management Services, which provides continental U.S. (CONUS) and outside continental U.S. (OCONUS) support of intelligence, logistics, Command, Control and Communications (C3), and combatant commands;
Government Services Segment:
- Aviation & Maritime Services, which provides support for maritime and expeditionary warfare;
- Enterprise Solutions, which provides conventional high-end information technology (IT) support to U.S. federal agencies and the DoD.
- Titan’s Technical and Operational Support division led by General Carl Vuono was renamed the Linguist Operations and Technical Support division. Titan is one of the largest providers of translators to the US military.
Titan’s remaining legacy businesses, which are products focused, were integrated into four existing L-3 operating groups that are all included this reportable segment:
- Information Products into L-3’s Microwave Group;
- Unidyne (Titan’s ship modernization and modification business) into L-3’s Power & Controls Systems Group;
- Advanced Systems Development into L-3’s Sensors & Simulation Group; and
- Applied Technologies into L-3’s Products Group.
In addition, the company made certain re-alignments to its own reportable segments. Special Products received both L-3’s aviation products businesses, which were previously in the AAM&M reportable segment (formerly Aircraft Modernization, O&M and Products), and (ii) the Link Training business, which was previously in the Government Services reportable segment.