STRONG RAYTHEON FIRST QUARTER
23 Apr 09. Raytheon Company reported first quarter 2009 income from continuing operations of $457m or $1.11 per diluted share compared to $401m or $0.92 per diluted share in the first quarter 2008.
“We delivered strong results across all of our businesses during the quarter,” said William H. Swanson, Raytheon’s Chairman and CEO. “Raytheon’s strong domestic and international business and diverse portfolio of more than 8,000 programs position us well today and for the future.”
Net sales for the first quarter 2009 were $5.9bn, up 10 percent from $5.4bn in the first quarter 2008, with growth across all of the Company’s
businesses. Operating cash flow from continuing operations for the first quarter 2009 was $411m compared to $67m for the first quarter 2008. The increase in operating cash flow was primarily due to a $337m tax refund received in the first quarter 2009.
In the first quarter 2009 the Company repurchased 6.8 m shares of common
stock for $300m, as part of the Company’s previously announced share repurchase program. In addition, as announced in March 2009, the Company’s Board of Directors voted to increase the Company’s annual dividend payout rate by 11 percent from $1.12 to $1.24 per share.
The Company ended the first quarter 2009 with $87 m of net debt. Net debt
is defined as total debt less cash and cash equivalents.
Summary Financial Results 1st Quarter %
($in ms, except per share data) 2009 2008 Change
Net sales $5,884 $5,354 10%
Total operating expenses 5,172 4,745
Operating income 712 609 17%
net 33 16
Income from cont. ops. before taxes $679 $593 15%
Income from continuing operations $457 $401 14%
Income/(loss) from disc. ops., net NM
of tax 3 (2)
Net income(1) $460 $399 15%
interests(1) 8 1
Net income attributable to
Raytheon Company(1) $452 $398 14%
Diluted EPS from continuing
operations(2) $1.11 $0.92 21%
Diluted EPS(2) $1.12 $0.92 22%
Operating cash flow from cont. ops. $411 $67
FAS/CAS pension adjustment
Inc./(Exp.) $11 $(33)
Workdays in fiscal reporting
calendar 61 63
(1) Raytheon Company adopted FAS No.160, Noncontrolling Interests in
Consolidated Financial Statements, effective January 1, 2009.
(2) Raytheon Company adopted FASB Staff Position EITF 03-6-1 for
Participating Securities, effective January 1, 2009, which decreased
Q1 2008 diluted EPS from continuing operations by $0.01. The impact
on Q1 2008 diluted EPS was less than $0.01.
The Company adopted FAS No.160, Noncontrolling Interests in Consolidated
Financial Statements, effective January 1, 2009. The Company’s noncontrolling interests relate primarily to Thales-Raytheon Systems Co. LLC, which is included in the Network Centric Systems (NCS) segment. The impact to NCS in the first quarter 2009 is an increase of $8 m in operating income compared to an increase of $1 m in the first quarter 2008.
During the quarter, the Company changed the reporting of a U.K. manufacturing facility from Space and Airborne Systems to Missile Systems. Prior period segment results have been revised to reflect this reorganizatio