ITT Exelis (NYSE: XLS) reported 2012 financial results for the fourth quarter and full year of 2012. Fourth-quarter revenue was $1.4 billion, an 8 percent decrease from the fourth quarter of 2011. Earnings were $0.45 per share, a 32 percent increase from the fourth quarter of 2011. Adjusted earnings were $0.47 per share for the fourth quarter, a 6 percent decrease from the same period in 2011. The company generated $259 million in free cash flow in the quarter. For the full-year 2012, the company reported revenue of $5.5 billion, a 5 percent decline from 2011; and earnings of $1.75 per share, the same as the previous year. Adjusted earnings were $1.85 per share, down 7 percent from 2011. Full-year revenue was impacted by slowing global acquisition cycles due to budget and economic challenges, while the continued sales mix shift away from high volume, surge-related products also drove revenue lower year-over-year. Free cash flow for the year was $285 million, which reflects $266 million in contributions made by the company to its pension fund. “In 2012, our first full year as an independent company, we set a solid foundation for the future,” said Exelis CEO and President David F. Melcher. “And while we are acutely aware that 2013 will be a challenging year throughout the defense industry, we are proactively restructuring, driving operational efficiencies, and pursuing commercial and international markets for our products and services, to help mitigate the market uncertainties on the horizon. Above all, we remain fully committed to continuing to deliver value to shareholders and mission-critical solutions to our customers.” Segment ResultsC4ISR Electronics and Systems C4ISR Electronics and Systems fourth-quarter 2012 revenue was $603 million, down 15 percent from the same period in 2011. Full-year revenue for the segment was $2.5 billion, down 12 percent compared to 2011 as declines in sales of domestic night vision goggles, SINCGARS radios and IED jammers were offset partially by sales of upgrade kits for the installed base of jammers. Fourth-quarter 2012 adjusted operating income was $93 million, down 24 percent from the fourth quarter of 2011. Full-year 2012 adjusted operating income was $366 million, a decline of 12 percent from 2011, driven by lower sales volumes and a continued shift away from surge-related production contracts.