Michael Strianese, chairman and CEO at L3 Technologies (NYSE: LLL), has said the company has begun to assess strategic alternatives for Vertex Aerospace business after the New York-based aerospace and defense contractor posted a goodwill impairment charge for Vertex during the third quarter of 2017.
Strianese said in a statement issued Thursday L3 recorded $187 million in goodwill impairment charge, or $1.67 per diluted share, for its Vertex subsidiary after the company failed to win a recompete contract for aviation maintenance and support services at Fort Rucker, a U.S. Army post in Alabama.
He noted that L3 recorded growth in its electronic and communications systems business and restructured some of its business units in the aerospace systems segment during the previous quarter.
Strianese also offered updates on the transition process as Christopher Kubasik, L3 president and chief operating officer, prepares to assume the CEO role by Jan. 1, according to an earnings call transcript.
He said the company considers defense as its core business and expects the ongoing budget talks to result in additional funds for the Defense Department.
Strianese also cited L3’s investments and development initiatives in the field of aviation security and the company’s support to readiness efforts in special operations markets worldwide through its capabilities in areas such as precision-guided munitions, night vision, intelligence, surveillance and reconnaissance, space and protected communications.