Exelis 3Q profit drops as Afghanistan work slows

Exelis 3Q profit drops 9 percent as US military draws down Afghanistan work

Associated Press

NEWS: Exelis said Friday that its third-quarter net income fell 9 percent as orders slowed for military gear needed in Afghanistan.

DETAILS: The former defense unit of manufacturer ITT Corp. makes night-vision goggles, anti-bomb products and does technical work for the government. Much of that work has been slowing down as the U.S. military's presence in Afghanistan has shrunk. Some of the declines were offset by increased sales of newer night-vision goggles and work the company is doing for the Federal Aviation Administration.

NUMBERS: Net income fell to $80 million, or 41 cents per share, for the three months ended Sept. 30. That was down 9 percent from $88 million, or 47 cents per share in the 2012 quarter. Revenue fell 16 percent to $1.14 billion, from $1.36 billion last year.

Analysts surveyed by FactSet, on average, had been expecting a profit of 40 cents per share on revenue of $1.25 billion.

FUTURE: Exelis said full-year revenue will be between $4.9 billion and $5 billion, compared with a prediction in August for revenue of $5 billion to $5.1 billion. Its guidance for earnings per share was unchanged at $1.45 to $1.55. Analysts were expecting $1.50 on revenue of $5.01 billion.

STOCK: Closed on Thursday at $16.49, up 49 percent in the past 52 weeks.

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