Results include sales of $US1,784.2 million, operating income of $US199.4 million, diluted earnings per share of $US0.93, net cash from operating activities of $US164.0 million and free cash flow(1) of $US144.1 million.
<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />
For the 2004 third quarter, sales increased by 41.1 per cent to $US1,784.2 million from sales of $US1,264.6 million for the 2003 third quarter. The increase in sales from acquired businesses was 22.7%, or $US286.6 million.
Consolidated organic sales growth was 18.4 per cent, or $US233.0 million. Organic sales growth for the company’s defense businesses was 17.3 per cent, or $US193.4 million, driven by continued strong demand for secure communications and intelligence, surveillance and reconnaissance (ISR) systems, aircraft modernization, aviation products, training and government services, training devices, imaging products and naval power equipment and services.
Organic sales growth for the company’s commercial and other non-military businesses was 27.4 per cent, or $US39.6 million, primarily due to increased volume for commercial aviation products and for security products and maintenance services.
Consolidated operating income for the 2004 third quarter increased by 30.8 per cent to $US199.4 million from $US152.4 million for the 2003 third quarter.
Consolidated operating income as a percentage of sales (operating margin) decreased to 11.2 per cent for the 2004 third quarter, compared to 12.0 per cent for the 2003 third quarter. This decrease was principally due to lower margins for the Vertex Aerospace business, which was acquired on December 1, 2003, and changes in product sales mix for certain businesses within the specialized products segment. The changes in operating margin are explained in the company’s segment results discussed below.
Net income for the 2004 third quarter increased by 34.7 per cent to $US102.5 million, compared to net income of $US76.1 million for the 2003 third quarter. Diluted earnings per share (EPS) increased by 25.7 per cent to $US0.93, compared to $US0.74 for the 2003 third quarter.
