S&P: Harris unchanged

Standard & Poor's said that Harris Corp.'s announcement that it will combine its Microwave Communications Division with Stratex Networks to form a new company named Harris Stratex Networks, Inc. would not affect its ratings or outlook on Harris.

The agency said that Harris' Microwave Communications Division, which is the smallest of its four business segments, contributed $22 million of operating income, excluding stock based compensation, during fiscal 2006, ended June.

Potential benefits of the planned merger include greater-scale, enhanced distribution channels and cost synergies, which should drive improvement from current mid-single-digit profitability at each individual business, the agency added.

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