Harris Wins Contracts
Harris Corporation (NYSE: HRS – $74.45) provider of advanced, technology-based solutions for government and commercial customers, has received a $100 million increase in the ceiling value of its 2011 single-source contract from the Defense Logistics Agency from $85 million to $185 million, with an August 2016 completion date. The ceiling increase provides the U.S. Army and federal civilian agencies with greater flexibility in acquiring spare parts for a wide-range of Harris Falcon handheld, manpack and vehicular tactical radios. In addition, Harris received a $13 million order to supply the Air National Guard with vehicular tactical and public safety radio systems that provide critical ground-to-air voice and data communications during wartime and domestic emergency responses, including natural disasters. Harris’ businesses are not without challenges as defense spending continues to be on the decline. However, the shares have done well for investors since entering the aggressive portfolio and have held up relatively well during the recent market downturn. The shares, yielding 2.7%, can continue to be held for modest total returns to late decade.