Streamlined Exelis turns to ATM for growth

Exelis’ decision to spin-off its military and government services business into an independent public company in an effort to focus on high tech ‘growth platforms’ will mean air traffic management assumes a more important role within the business.

With the spinoff, US-based Exelis will focus on strengthening its four strategic platforms: critical networks, ISR and analytics, electronic warfare, and aerostructures.

Following the spin-off, the company expects that revenues will reflect greater customer diversity- and importantly diversify the company away from the Pentagon. Today, about 30 per cent of Exelis revenues are generated from non-US defence markets such as air traffic management, information and cyber security, commercial and international markets. Following the spin-off, it is expected that non-US defence markets will account for around half of Exelis revenues.

“We are repositioning our businesses to enhance our focus on the long-term growth drivers that will enable us to remain well-positioned in an evolving global market environment,” said David F. Melcher, chief executive officer and president of Exelis. “This follows a comprehensive review of our business and market dynamics. This spin-off enables both Exelis and Mission Systems to become more agile, better aligned and able to more effectively meet the needs of their customers, both domestically and internationally.”

Melcher told the Washington Business Journal that Exelis was not interested in acquiring aerostructures businesses as it had recently invested in a composite design and manufacturing centre for commercial and military composite aircraft structures in August although added that ‘the other three strategic platforms are all fair game’. He added that about 75 per cent of post-spin Exelis revenues will come from strategic growth platforms, compared to about 50 per cent today.

Read More: ITT Exelis, Metron integrate ATM technologies

Posted in Corporate, News

Comments are closed.