L-3 Announces Segment Realignment
L-3 Communications (NYSE: LLL) announced today that it has reorganized its business segments to better align its organizational structure with customer priorities and increase operational efficiencies. The new structure is effective immediately.
“The realigned business segments will enhance L-3's productivity and agility,” said Michael T. Strianese, L-3's chairman, president and chief executive officer. “This new structure will improve our competitive position and generate cost savings, as well as greater technology and sales synergies, through more focused collaboration across the company. This strategic move increases L-3's ability to deliver innovative and cost-effective solutions to our customers and enhance shareholder value.”
L-3's structure now consists of these four business segments: Aerospace Systems, Electronic Systems, Communication Systems and National Security Solutions.
Aerospace Systems: John C. McNellis has been named president of Aerospace Systems, which combines the operations of the former Platform & Logistics Solutions (P&LS) segment with Intelligence, Surveillance and Reconnaissance (ISR) Systems. ISR Systems was part of the former Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) segment. Aerospace Systems delivers integrated solutions for the global ISR market and provides modernization, upgrade, sustainment, and maintenance and logistics support for a wide variety of aircraft and ground systems. Aerospace Systems had 2013 net sales of approximately $4.561 billion.
Electronic Systems: Steve Kantor continues in his role as president of Electronic Systems, which includes all previous businesses except Microwave Products, which is now part of Communication Systems. Electronic Systems provides a broad range of components, products, subsystems, systems and related services for military and commercial customers. Electronic Systems had 2013 net sales of approximately $4.604 billion.
Communication Systems: John S. Mega has been named president of Communication Systems, which combines the operations of Microwave Products, previously part of the Electronic Systems segment, with Networked and Secure Communications Products, previously part of the former C3ISR segment. Communication Systems delivers products and services for the global communications market, specializing in strategic and tactical airborne, space, ground and sea-based communication systems. Communication Systems had 2013 net sales of approximately $2.168 billion.
National Security Solutions: Les A. Rose continues in his role as president of National Security Solutions, which remains unchanged. National Security Solutions will continue to provide cybersecurity solutions, high-performance computing, enterprise IT services, analytics and intelligence analysis. National Security Solutions had 2013 net sales of approximately $1.295 billion.
The realignment is not expected to have any impact on the company's consolidated 2014 financial guidance. The company's new segments will be presented at its upcoming Investor Conference on March 25, 2014. Commencing with the company's quarterly report on Form 10-Q for the period ending March 28, 2014, the company will report its results under the realigned business segments.
Headquartered in New York City, L-3 employs approximately 48,000 people worldwide and is a prime contractor in aerospace systems and national security solutions. L-3 is also a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. The company reported 2013 sales of $12.6 billion.
To learn more about L-3, please visit the company's website at www.L-3com.com. L-3 uses its website as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company's website and is readily accessible.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” “could” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-Looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
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