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RAYTHEON REPORTS THIRD QUARTER PROFIT

23 Oct 02. Raytheon Co. (NYSE:RTN – News), reported on Wednesday a quarterly profit on growth in military sales, compared to a loss last year, but warned earnings for 2003 would be hurt by pension account expenses.

Raytheon posted a third-quarter net profit of $147m, or 36 cents per share, (2001: $285m or 79 cents). The 2001 results include a $745m charge related to commuter aircraft at the company’s Raytheon Aircraft unit. Sales, fuelled by growth at its electronic systems and command, control,
communication and information systems units, rose to $4.1bn, (2001:$3.8bn.

Income from continuing operations, which exclude the company’s engineering
and construction business, reached $228m, or 56 cents a share. Raytheon tightened its profit outlook for 2002, forecasting earnings per share from continuing operations in a range between $2.10 and $2.15, compared to its earlier forecast of $2.10 to $2.20. For 2003, Raytheon said it expects earnings per share from continuing operations between $1.60 and $1.70 on revenue growth between 6 and 7 percent. Excluding an expected increase in pension expense, earnings are expected to rise by 10 percent, Raytheon said.

Raytheon said it expected its total debt to rise by about $1bn to a range of $6.9 to $7.2bn with the elimination of its commercial aircraft financing facility, whose assets had been kept off of the company’s balance sheet.

On 24th October Raytheon Systems Limited (RSL) was selected to supply Identification Friend or Foe (IFF) systems for the new Astute Class submarines. The contract has been awarded by EADS Defence Systems and Electronics (UK) Limited and is for three Successor IFF (SIFF) Naval Transponder Systems.

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