L-3 Communications Posts Higher 3Q Profit

NEW YORK (AP) — L-3 Communications Holdings Inc. said Tuesday its third-quarter earnings rose 19.8 percent on increased sales and a tax benefit. The defense contractor also slightly raised its guidance for the rest of the year.

Sales grew 5 percent, driven primarily by its intelligence, surveillance and reconnaissance business and its aircraft modernization and maintenance segment, the company said.

However, those increases were partially offset by a decline in its government services business, which provides emergency management systems, leadership training and education services to government agencies and support personnel for national security and other programs.

Its shares rose $1.64, or 2.2 percent, to $75.80 in morning trading.

L-3 Communications said its earnings attributable to common shareholders rose to $248 million, or $2.12 per share, compared with $207 million, or $1.70 per share in the same period last year.

The quarter ended Sept. 25 included a tax benefit of 22 cents per share for a reversal of amounts accrued in tax years for which the statute of limitations had expired, the company said.