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The Company manufactures industrial products and components as well as sophisticated manufacturing equipments. The Company operates in six segments: Diversified, Electronics, Industries, Resources, Systems and Technologies.
L-3 Spins Off EngilityBy: Zacks Equity ResearchJuly 18, 2012L-3 Communications Holdings, Inc. (LLL - Analyst Report) announced that it has completed the spin-off of 100% of a new, independent, publicly traded government services company – Engility Holdings, Inc. – to L-3 shareholders. The spin-off announcement was made in July 2011 and the company received the final nod for the spin-off from its Board of Directors in June 2012. Engility is a leader in Systems Engineering and Technical Assistance, Training and Operational Support services. It will begin trading as an independent publicly traded company on the New York Stock Exchange under the ticker symbol “EGL” from July 18, 2012. With the spin-off, L-3 shareholders of record as of July 16, 2012 received one share of Engility common stock for every six shares of L-3 common stock held on the record date. Except for cash received in lieu of fractional shares, the spin-off transaction has been structured in a way that it leads to a tax-free distribution to L-3 shareholders. The company has retained its cyber, intelligence and security solutions businesses. Going forward, the segment will be known as National Security Solutions. It develops unique solutions to deal with the challenges faced by U.S. Department of Defense, intelligence and global security customers. From the third quarter of 2012, L-3 will report Engility financial results as discontinued operations. Comparable periods will also be retrospectively adjusted. On July 26, 2012, along with its second quarter earnings release, the company plans to redeem $250 million aggregate principal amount of its 6.375% Senior Subordinated Notes due in 2015 at a redemption price of 102.125% of the principal amount thereof, plus accrued and unpaid interest with the net proceeds received from the spin-off. It also plans to repurchase approximately $75 million of its outstanding shares form the proceeds. The company maintained its 2012 financial outlook as issued in June this year. The company expects sales in the range of $12,950 million to $13,150 million. It expects earnings per share in the range of $7.70 to $7.85. The company projects operating margin of 10.3%, net cash from operating activities of $1,240 million and capital expenditure of $195 million. The Zacks Consensus Estimate for the second quarter and fiscal 2012 are $2.03 and $8.49, respectively. The spin-off has removed uncertainty with reference to revenue and will also take away some of the lowest margins at the company. With the completion of the transaction, L-3 will be able to focus on areas that are important for the company to provide market-leading, value-added products and solutions to its customers. In addition to the spin-off, the company is working on a number of additional internal consolidations and divestitures in order to lower overhead costs, mainly in the Electronic Systems segment. However, negative offsets include the loss of key contracts, defense spending cuts and lack of near-term catalysts. The company presently retains a short-term Zacks #4 Rank (Sell). We have a long-term Neutral recommendation on the stock. L-3 Communications Holdings, Inc. operates through its wholly owned subsidiary, L-3 Communications Corporation. L-3 Communications is a leading supplier of a broad range of products and services used in a number of aerospace and defense platforms. The company mainly competes with Raytheon Company (RTN - Analyst Report) and API Technologies Corporation (ATNY).http://register.zacks.com/ucd/step1.php?ALERT=FOOL_ZER&d_alert=ZER_CONF&t=dov&ADID=FOOL_ZERFEED
What does this have to do with Dover Corp ? And how do you have a green thumb and a red on the same Ticker "DOV" a week apart?
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