L-3 Announces Segment Realignment
Realigned Business Segments Enhance L-3’s Competitive Position to Drive Growth
and Create Value
NEW YORK -- March 12, 2014
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
“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
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 (C^3ISR)
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 C^3ISR 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
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
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
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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