New Ceo for Harris - Analyst Blog
October 11 2011 - 6:30AM
Zacks
A leading supplier of
communications equipment and services, Harris
Corp. (HRS) recently appointed William M. Brown as the
president and chief executive officer (CEO) effective November 1,
2011.
William M. Brown, aged 48, will
succeed Howard L.Lance, the former CEO and president of Harris.
Howard L.Lance, aged 55, joined Harris in 2003 and despite
resigning from his position as the company’s CEO will remain as the
non-executive chairman of the company till the end of 2011 and will
also act as the senior advisor to the board till 2012.
During Lance’s tenure, the company
witnessed consistent growth across all its operations. Revenue and
earnings per share (EPS) grew at a six-year (2004-2010) compounded
annual growth rate (CAGR) of 18% and 54%, respectively.
William Brown has earlier held an
important position in United Technologies
Corporation (UTX) and has played pivotal roles in the
decision-making process of the company since 1997.
Brown has an excellent track
record, where he converted a $6.5 billion Fire & Security
division of UTC, which he joined before United Technologies, into a
$100 billion profit making division. In UTC, Brown supervised a
huge team of approximately 45,000 workers spread across 41
factories and 350 branches in 35 countries.
As far as Brown’s qualification is
concerned, he holds a masters degree in business management from
University of Pennsylvania Wharton School and also a master degree
in mechanical engineering from Villanova University. We believe his
technical expertise and managerial knowledge along with a great
track record will benefit Harris going forward.
Continuous contract wins and huge
order back logs coupled with appointment of new CEO will support
future growth for Harris. Moreover, accretive share repurchase plan
and the recent dividend hike will act as positive catalysts for the
stock going forward.
However, stiff competition coupled
with reduction on U.S. defense expenditure as Harris is heavily
dependent on U.S. government-based projects may act as headwinds
for the stock going forward.
We, thus, maintain our long-term
Neutral recommendation forHarris Corporation.Currently, Harris
Corporation has a Zacks#3 Rank, implying a short-term Hold rating
on the stock.
HARRIS CORP (HRS): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
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