US-based technology company and defence contractor L3Harris Technologies has reported a 5% drop in revenue in the third quarter of 2021 as operations suffered due to supply chain issues.
The company’s quarterly revenues totalled $4.32bn in Q3 2021, down from $4.46bn reported in the prior-year period.
On an organic basis, the figure was down by 1%.
The fall was attributed to global supply chain disruptions particularly electronic component shortages, as well as strategic divestitures.
However, net income in the quarter recorded an 11% jump increasing from $430m in Q3 2020 to $479m in Q3 2021.
Earnings per share (EPS) was $2.39 in the third quarter of this year, up from $1.99 recorded in the same period a year ago.
In addition to Space and Airborne Systems, all L3Harris’ business segments recorded a fall in quarterly revenues.
Q3 revenues in Space and Airborne Systems increased 3% to $1.28bn.
The Integrated Mission Systems segment posted quarterly revenue of $1.34bn, down from $1.37bn recorded a year ago.
Communication Systems and Aviation Systems reported a 6% and 21% drop in revenues respectively.
L3Harris Technologies vice-chair and CEO Christopher E Kubasik said: “The L3Harris team delivered solid bookings, margins, and bottom-line results in the quarter, overcoming revenue headwinds due to supply chain delays and award timing.
“And in spite of unprecedented global supply chain disruptions that are reducing our organic revenue growth guidance for the year, we’re positioned to meet our earnings and cash flow commitments.
“We ultimately view these pandemic-related impacts as temporary and remain focused on creating value for our stakeholders over the long term.”
Last month, the US Army placed an order with L3Harris Technologies for 1,000 new Falcon IV AN/PRC-171 compact team radios.