Some major product line sales are being considered as the demand shifts towards the profitable and relatively low cost drone business. .
Electronic warfare, (avionics) is on the chopping block. No need to retool or retrain. Old sites like Clifton and Rochester will likely close in the coming year.
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@cq Your suggestion may be spot on. The L3H facility in Sylmar, CA was shut down a few years ago. They moved the legacy programs to sites in different states to increase other facility utilization and sold the property for 8-figures. Part of the proceeds paid for the relocation costs, site clean-up, and shutdown as the property was sold. Much corporate knowledge was lost when experienced employees chose not to relocate. This was well known in California at that time.
@cp defense budget at an all time high. WW3 possibility to ramp up even more spending. L3H can't improve financials unless layoffs or divestment occurs!
WOW! THIS IS WHAT FAILURE LOOKS LIKE!
We truly are the 6th sub-Prime in defense!
Fast forward to bankruptcy!
@cq removing an asbestos filled building is going to cost a lot of money. Only a major developer would buy this strictly for land value after clean up.
The chances of finding another defense company to buy the Clifton location is highly unlikely. The building is 80 years old. The roof leaks, the floors are cracked in places and the place stinks to high heaven after a heavy rain. And the ground under this place is almost as toxic as the work environment above ground.
It probably costs the company a over $1 million a month for utilities. The property tax evaluation is around $20 million, which means the fair market value for all that acreage along route 3 is probably around $35 million. A developer would hit a home run if he could grab 30+ acres along that highway.
Just look for operating income due to product line sales (“portfolio exits”) in the financial statement footnotes! It’s sad that they can’t make income in core operations. They have to do these product line sales to strategic acquirers.
@OP TCOM for sale in ROC??? EW has been a disaster ever since Harris' Excelis acquistion. ADVIEW loss was the last straw. Avionics in PBY for sale???
They've been saying this for a while. Somehow Clifton and Rochester stay open. Doubtful anything happens at least until they can find a suitable buyer for the Clifton facility.
Oh wow! Which quarter will these happen?