Exelis reports higher profit, lower revenues in the fourth quarter
Earnings: Exelis Inc., McLean
THE TAKE: Profit at defense contractor Exelis Inc. grew 34 percent in the fourth quarter on lower separation costs. Revenue, however, dropped 8 percent in the fourth quarter and 5 percent for the year. The company was spun off form ITT Corp. in 2011.
Total revenue: Revenue in the fourth quarter fell 8 percent to $1.36 billion. For the full year, revenue fell 5 percent to $5.52 billion.
Net income: The company reported a 34 increase in profits to $86 million in the fourth quarter. For the full year, profit grew 1.2 percent to $326 million.
Earnings per share: For the fourth quarter, Exelis earned 45 cents per diluted share, up from 34 cents per share in the fourth quarter of 2011. For the full year, the company earned $1.75 per diluted share – even with the year before.
THE COMPANY’S TAKE: “In 2012, our first full year as an independent company, we set a solid foundation for the future,” said Exelis CEO and President David F. Melcher. “And while we are acutely aware that 2013 will be a challenging year throughout the defense industry, we are proactively restructuring, driving operational efficiencies, and pursuing commercial and international markets for our products and services, to help mitigate the market uncertainties on the horizon. Above all, we remain fully committed to continuing to deliver value to shareholders and mission-critical solutions to our customers.”