Supply chain woes lower L3Harris' Q3 revenue
L3Harris Technologies is having trouble getting electronic components for its military radios because of pandemic-related disruptions in the global supply chain, according to the US defence contractor.
The problem contributed to a 1% decline, to USD4.2 billion, in L3Harris' organic revenue in the third quarter of 2021, the company reported on 29 October.
“No company is immune, including L3Harris, to global supply chain pressures,” L3Harris CEO Christopher Kubasik told analysts.
L3Harris expects the supply constraints to persist through the first half of 2022. The company aims to begin catching up on its order backlog in the second half. “We ultimately view these pandemic-related impacts as temporary,” Kubasik said.
L3Harris is securing alternative sources and parts to mitigate the problem, and it has managed to meet delivery requirements for its key US military modernisation programmes, including a recently awarded full-rate production contract for the US Army's Handheld, Manpack & Small Form-Fit programme, company officials said.
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