Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

L-3 sees lower sales, profit in 2012

Company expects Engility spin-off at mid-year

Dec 6 (Reuters) – Defense contractor L-3 Communications Holdings Inc said on Tuesday it expects sales and earnings to fall next year, citing declining U.S. spending and troop withdrawals from Iraq and Afghanistan.

L-3, which expects to spin off part of its government services segment into a new company called Engility by mid-year 2012, said it is moving to reduce overhead as customers face fiscal constraints.

“It’s going to be a more challenging environment for us,” Chairman and Chief Executive Michael Strianese said during the company’s investor conference webcast.

Defense contractors are shedding noncore units and reducing headcount in preparation for leaner global defense budgets. The U.S. Defense Department, the world’s biggest weapons spender, is looking to find more than $450 billion in cuts over the next decade

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December 6, 2011 - Posted by | Civilian Contractors, L-3 | , , ,

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