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[Satellite TODAY 05-03-12] After taking on a sizable fiscal penalty to write down assets in weaker business units, Harris Corp. CEO William Brown confirmed May 1 that the parent company will divest its Harris Broadcast Communications business unit in order to focus on key divisions that have come under pressure as the U.S. government cuts defense spending.
“Given the tough environment that we’re facing, we think it is important for us to just focus our resources, including our management time and attention, on the businesses that we know to be core to our company,” Brown said during a conference call.
Harris Broadcast Communications management issued a statement of support for Brown’s decision, stating that the timing of a division sale was right for both Harris and Broadcast Communications.
“Over time, [Harris] Broadcast Communications had become less aligned with the Harris core businesses and long-term strategy. Operating independently or as part of a broadcast or media-focused enterprise will provide us with strategic investment, increased competitive flexibility and customer focus to lead the continuing transformation in this competitive marketplace,” Harris Broadcast Communications said in the statement.
Harris Broadcast Communications will continue to be a part of Harris Corp. and operate business as usual throughout the sell-off process.
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