Qioptiq logo Raytheon Global MilSatCom

RAYTHEON REPORTS RESULTS – BURNHAM STANDS DOWN

RAYTHEON REPORTS BETTER THAN EXPECTED RESULTS – BURNHAM STANDS DOWN

22 Apr 03. Raytheon Co. (NYSE:RTN – News) returned to profit in its first-quarter from a loss a year earlier, when the company was hurt by the sale of Aircraft Integration Systems and goodwill write-offs.

The defense and aerospace company Tuesday reported net income of $95m , or 23 cents a share, in contrast to a net loss of $583m, or $1.47 a basic share, a year earlier.

Results for the latest quarter include a loss of $16m, or four cents a share, from discontinued operations. Income from continuing operations fell 26% to $111m, or 27 cents a share, from $149m, or 37 cents a share, a year earlier.In January, Raytheon projected earnings of 24 cents to 26 cents a share for the first quarter.

The first quarter of 2002 included a loss on the $1.13bn sale last March of Aircraft Integration Systems to L-3 Communications Holdings Inc. and the write-off of goodwill at Raytheon Aircraft and AIS.

In the latest quarter, non-cash pension expenses reduced earnings by 14 cents a share. Sales rose 7.4% to $4.2bn from $3.91bn, paced by the government and defense businesses. However, Raytheon Aircraft sales fell 24% to $377m, due to lower deliveries and previous divestitures. Raytheon aircraft delivered 31 commercial planes in the quarter, down from 43 a year earlier.

The integrated defense systems business generated revenue of $645m, up 11%, thanks primarily to start-up of the Navy’s future destroyer program and increased missile sales.

Sales of intelligence and information systems rose 11% to $462m on growth in classified programs and the start-up of an orbiting polar satellite system designed to meet the nation’s future needs for weather forecasting.

Sales of missile systems climbed 18% to $857m, helped by increased sales of Tomahawk missiles and several programs that are being accelerated to full-rate production.

Space and airborne systems saw revenue increase 26% to $894m, primarily because of higher sales of airborne radar programs and classified programs.

Raytheon’s network centric systems brought in revenue of $771m, up 3%. Sales of technical services fell 7% to $491 million, because of program losses in 2002. Raytheon ended the quarter with a backlog of $26.7bn, up from $25.7bn a year earlier.

On April 23rd Raytheon announced that effective July 1, 2003, its chairman and chief executive officer, Daniel P. Burnham, 56, has decided to step down as chief executive officer of the company. Burnham will continue to serve on the board as non-executive chairman.

“Dan Burnham has brought a clear vision, strong leadership and critical change to Raytheon,” said Warren B. Rudman, lead director of the Raytheon Board of Directors and former U.S. Senator. “He faced challenging issues with courage and integrity and steps down as CEO with Raytheon well positioned for future success. The board reluctantly accepted Dan’s decision and is grateful to him for his exempplary service. We are pleased that he has agreed to remain as non-executive chairman of the board to ensure a smooth transition,” Rudman added.

The board of directors today named William H. Swanson, 54, currently president of Raytheon, to succeed Burnham as CEO. Swanson will assume his new responsibilities as president and chief executive officer effective July 1, 2003.

“Bill Swanson brings tremendous experience in the defense industry and a proven record of leadership and performance to his new responsibilities,” Rudman said. “We are delighted to have a leader with Bill’s experience and capability in the company to succeed Dan as CEO,” he added. In reflecting on his decision to step down as CEO, Burnham said: “Raytheon is performing well. I am leaving a very good company in great hands. I have had a terrific business career for more than 35 years, and I am especially proud of the last five years here at Ray

Back to article list