NEW YORK --- L3 Technologies, Inc. today reported diluted earnings per share (EPS)from continuing operations of $2.83 and adjusted diluted EPS from continuing operations of $3.10 for the quarter ended December 31, 2018 (2018 fourth quarter).
Adjusted diluted EPS excludes merger and acquisition related expenses of $0.24 per diluted share and adjustments to divestiture gains of $0.03 per diluted share. Diluted EPS from continuing operations for the quarter ended December 31, 2017 (2017 fourth quarter) was $3.34. The 2017 fourth quarter results included an estimated tax benefit of $79 million, or $0.99 per diluted share, related to the enactment of the U.S. Tax Cuts and Jobs Act (U.S. Tax Reform) in December 2017. Net sales of $2,771 million for the 2018 fourth quarter increased by 8% compared to the 2017 fourth quarter.
“We performed well in the fourth quarter, ending 2018 with growth in sales, operating income, adjusted EPS, free cash flow, orders and a book-to-bill ratio of 1.13,” said Christopher E. Kubasik, L3’s Chairman, Chief Executive Officer and President. “Segment operating margin was 10.8%, flat compared to 2017, which was lower than expected primarily due to performance in our traveling wave tube businesses, as well as some sales mix changes.
“However, we remain on track for 12 percent operating margin in 2019 as we advance our L365 continuous improvement and productivity initiatives. On the pending merger with Harris Corporation, we expect to complete the merger mid-year 2019 and would like to thank our employees for staying focused on our customers while we move forward with our integration activities.”
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