QUOTE AND NEWS
Benzinga  Jun 10  Comment 
Citi’s Jason Gursky believes improving end markets and margin expansion opportunities could support a free cash flow opportunity worth $900 million for Harris Corporation (NYSE: HRS) in as little as two years. Gursky initiated coverage of the...
MedPage Today  May 9  Comment 
(MedPage Today) -- Auto-optimizing and multipoint CRT; ablation vs. meds and with rotors
Benzinga  May 9  Comment 
Harris Corporation (NYSE: HRS) revealed that it has been awarded a five-year, $405 million ceiling, single-award follow-on IDIQ contract from the Army Communications-Electronics Command of the United States. According to Harris, the follow-on...
Benzinga  May 5  Comment 
Harris Corporation (NYSE: HRS) revealed that it received $41 million worth of orders under the U.S. Army's Modernization of Enterprise Terminals (MET) program. According to the company, the order was for production, spare parts, depot, and...
newratings.com  May 3  Comment 
WASHINGTON (dpa-AFX) - Harris Corp. (HRS) announced a profit for its third quarter that increased compared to the same period last year. The company said its bottom line rose to $182 million, or $1.45 per share. This was up from $139 million, or...
Benzinga  Apr 29  Comment 
Harris Corporation (NYSE: HRS) disclosed that it received an $88 million order to supply electronic jammers for the American Navy F/A-18 Hornet and Super Hornet aircraft. The company said jammers protect the Navy jets from sophisticated electronic...
Motley Fool  Mar 13  Comment 
Apparently so. And you wouldn't believe who's going to benefit -- or how much.
newratings.com  Feb 29  Comment 
WASHINGTON (dpa-AFX) - Harris Corp (HRS) said it was one of three awardees of a multi-award IDIQ contract to supply HMS Manpack radios to the U.S. Army. The IDIQ contract consists of a five-year base and an additional five-year option and has a...
newratings.com  Feb 29  Comment 
WASHINGTON (dpa-AFX) - Albany International Corp. (AIN) has agreed to acquire communications equipment maker Harris Corp.'s (HRS) Aerostructures business for an enterprise value of $210 million, the two companies said Monday. The deal value...




 

Harris Corporation (NYSE: HRS) provides communications and information technology systems and services to government and commercial companies in 150 countries.[1] Harris operates through three segments: RF Communications segment, Government Communications Systems segment and Broadcast Communications segment. Because approximately three fourths of 2010 revenue came from the Federal Government, Harris' revenue growth depends heavily on government and defense spending budgets.[2] In response to potentially declining defense spending, Harris has moved into other spaces through acquisitions.[3]


Business Growth

Harris reported net income of $562 million on revenues of $5.2 billion in 2010, versus net income of $38 million of revenues of $5.0 billion in 2009.[4] The Company reported higher revenues and improved margins due to sales of products from the the RF communications segment, which is the largest operating segment and boasts profit margins of around 30%.[5] While not reflected in 2010 results, entries through acquisitions into the energy and health care markets have the potential of diversifying its customer based and leading to higher sales.[6]


Trends and Forces

U.S. Government dependency puts pressure on sales as proposed budget cuts gain momentum

Over three quarters of 2010 revenues came from sales to the U.S. Government. As the U.S. debt increases, there are increasing budgetary pressures to cut spending in the future.[7] In addition, the Obama administration has proposed wind downs of the wars in Afghanistan and Iraq, which have the potential of leading to further defense spending cuts. In fact, the pentagon has said that all spending is on the table for possible cuts. However, a key Harris strategy has been to provide products and services that help modernize defense and government systems.[8] Harris has reported that receiving higher revenue from a number of strategic DoD communications programs as well as high global demand for sophisticated tactical radio solutions.[9] Also, Harris has diversified its product and services offering through acquisitions in the energy and health care space. However, a long-term reduction in government and defense spending in the U.S. has the potential of hindering future revenue growth.[10]

A large international consumer base creates currency and political risks

Harris operates is over 150 countries and derives a significant portion of revenues from products exported from the U.S. or manufactured and sold abroad.[11] Because the economic, social and political conditions for business conducted outside the U.S. differs from those encountered by domestic businesses, Harris's international operations are particularly exposed to losses due to economic or political declines in these countries. In addition, heightened political instability in the Middle East and parts of Africa have the potential of preventing contract renewals and leading to currency instability.[12] Despite the fact that no international customer composed more than three percent of 2010 revenues, Harris faces increased currency and political risk from the regional instability occurring in the Middle East.[13]

Competitors

Harris competes with several international communications and IT companies, especially those that focus on government contracts. However, budgetary pressures in the U.S. and a potential drop in defense spending have led many of Harris' competitors to expand into other growing industries and foreign markets.


Within Government Communications Systems, Harris competes with the following[14]:

Within RF Communications, Harris competes with the following[15]:

Within Broadcast Communications, Harris competes with the following[16]:

References

  1. Retuers.com: Harris Corporation Company Profile
  2. Retuers.com: Harris Corporation Company Profile
  3. Retuers.com: Harris Corporation Company Profile
  4. Morningstar.com: Financials for Harris Corporation
  5. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  6. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  7. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  8. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  9. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  10. Seeking Alpha: Harris Corp Gives Investors Growth at a Good Price
  11. Harris 2010 Annual Report
  12. Harris 2010 Annual Report
  13. Harris 2010 Annual Report
  14. Yahoo Finance: Competitors for Harris
  15. Yahoo Finance: Competitors for Harris
  16. Yahoo Finance: Competitors for Harris
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