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UPDATE 1-Harris posts lower profit, sees weaker current quarter
July 31, 2012 / 3:30 PM / in 5 years

UPDATE 1-Harris posts lower profit, sees weaker current quarter

* Adj Q4 EPS $1.42 vs estimate $1.41

* Q4 orders rose

July 31 (Reuters) - Harris Corp, a maker of tactical radios used by the military, reported a lower quarterly profit on Tuesday as revenue fell.

Key divisions of Harris have come under pressure as the U.S. government curbs defense spending. Although the company is in general not a main contractor on big defense programs, it would be affected should further budget cuts take effect in January under a process known as “sequestration”, executives said during a conference call.

The company said the current first quarter would likely be weaker compared with a year earlier, citing lower sales and income in tactical communications and IT services. But it added the rest of the year would be in line with or higher than the year earlier.

Net income was $129.1 million, or $1.13 a share, in the fiscal fourth quarter ended June 29, compared with $133.5 million, or $1.06 a share, a year earlier. There were fewer shares outstanding in the most recent quarter.

Income from continuing operations came to $1.42 a share, compared with $1.41 expected by analysts, according to Thomson Reuters I/B/E/S.

Orders in the fourth quarter were $1.48 billion, up from $1.21 billion in the prior year.

Quarterly revenue fell nearly 6 percent to $1.44 billion from $1.52 billion a year earlier.

Harris stood by a prior forecast calling for profit from continuing operations of $5.10 to $5.30 a share over the next year. Analysts currently expect $5.16 a share, compared with $5.20 for the just-reported fiscal year.

Harris Corp shares were down 0.9 percent to $41.80 in morning trading.

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