It was announced on Tuesday that the United States military contractor L3Harris (LHX.N) would suspend its merger and acquisition activities for the “foreseeable future” to improve its financial sheet and project full-year revenue higher than analysts had anticipated.
The business anticipates that its sales will be around $21 billion in 2024. According to the statistics provided by LSEG, analysts had an average expectation of around $19 billion.
Additionally, the firm provided an overview of its capital deployment objectives for the next two years, beginning in 2024. These priorities include investments in research and development, debt payments, and using excess income for dividend hikes and share buybacks.
According to the statistics provided by LSEG, the corporation had total liabilities of $23.58 billion in the most recent quarter.
With a price tag of $800 million, L3Harris completed the sale of its commercial aviation solution division two weeks ago. In a statement released on Tuesday, the firm stated that it will use the revenues from the deal to settle creditors.
L3Harris’ board of directors decided to establish an ad hoc committee on Monday to investigate the company’s operational performance, cost structure, and portfolio composition. William Swanson, a former chief executive officer of RTX Corporation, and Kirk Hachigian, a former CEO of Cooper Industries, were appointed to the board.
L3Harris paid a total of $4.7 billion to rocket manufacturer Aerojet Rocketdyne in a highly contentious transaction earlier this year. The acquisition was made in order to capitalize on the growing demand for missiles and defense systems.
Comment Template