| Raytheon
increased its full-year 2007 guidance for earnings per share
from continuing operations, bookings and Return on Invested
Capital (ROIC), and updated its projections for bookings (up
one billion to 22-23 Billion through 2007. Improved operations
are expected to further improve net income, raising earnings
to 3.05 – 3.20 EPS.
All of the company's units performed well in Q2, Raytheon's
Intelligence and Information Systems (IIS) accumulated net sales
of $666 million. Main contributor to the increase was funding
received on several USAF and other classified programs. During
the quarter, the unit booked $332 million on a number of classified
contracts, including $157 million on a major classified contract.
Raytheon's Missile Systems (MS) reported sales of $1,244 Billion,
11% percent compared 2006. Main drivers for growth were high
deliveries of Standard Missiles, AIM-9X and Phalanx. The unit
booked $175 million for the production of Advanced Medium-Range
Air-to-Air Missile (AMRAAM) for the U.S. Air Force. MS also
booked $105 million for additional development on the Rolling
Airframe Missile (RAM) program for the U.S. Navy and $91 million
for the production of Standard Missile-3 (SM-3). Network Centric
Systems (NCS) reports net sales of $1.052 Billion, up 20% from
last year attributed primarily to US Army programs. Space and
Airborne Systems (SAS) reported sales of $1,065 million with
lower operating profit - $133 million income compared to $152
million in the second quarter 2006 caused primarily due to adjustments
in some of the . Operating income was lower primarily due profit
adjustments taken on certain programs.
April 25, 2007: Raytheon
Company (NYSE: RTN) reported its income from continuing operations
during the first quarter of 2007 was $314 million or $0.69 Earning
per diluted Share (EPS) 13% increase from Q1/06. The two largest
operating segments were missile systems and integrated defense
systems which increased their sales by 15% and 13% respectively.
Sales in the intelligence and information systems and space
segments were down slightly, reflecting program transitions
and delays. Net centric systems' sales increased 17%, primarily
from ongoing Army programs.
Net sales for the first quarter 2007 were $4.9 billion, up
6% from $4.7 billion in Q1/06. Main contributors for the growth
were the Integrated Defense Systems (IDS), Missile Systems (MS)
and Network Centric Systems (NCS). The Company reported total
bookings for the first quarter 2007 of $5.3 billion compared
to $5.0 billion in the first quarter 2006. The Company ended
the first quarter 2007 with a record backlog of $33.9 billion
compared to $31.8 billion at the end of the first quarter 2006
and $33.8 billion at the end of 2006. For the entire year Raytheon
projects net sales in the range of $21.4 to $21.9 billion with
EPS of $2.85 – $3.00.
The largest operation at Raytheon during the past quarter was
Missile Systems with net sales of $1,140 million, for Q1/07,
up 15% to Q1/06. The increase is attributed mainly to higher
volume on Standard Missile and Phalanx. New orders booked in
this period include $255 million for the production of Block
IV Tactical Tomahawk cruise
missiles for the U.S. Navy and $101 million for continued
production of the Joint Standoff
Weapons (JSOW) for the U.S. Air Force and Navy.
Integrated Defense Systems (IDS), accumulating net sales of
$1,092 million, up 13% from Q1/06. This growth was contributed
mainly from operations related to THAAD
radar, supported by the US Missile Defense Agency, work on the
US Army Patriot missiles
and system development related to the US Navy's Zumwalt
destroyer. International programs also contributed to the
growth of this segment, which presented a healthy growth in
operating income from $158 million in Q1/06 to $199 million
this year.
Sales of the Intelligence and Information Systems (IIS) were
down in the first quarter 2007, with net sales of $588 million,
compared to $611 million in Q1/06. Raytheon explained the decrease
due to 'reprioritization and procurement delays on certain classified
programs'. Nevertheless, the company booked $286 million on
a number of classified contracts thus contributing to healthier
future of this segment. The operating income of $55 million
remained unchanged from Q1/06.
Sales of the Network Centric Systems (NCS) increased 17% during
the past quarter to $929 million, representing increased orders
on U.S. Army programs. Among the ongoing programs are $122 million
for support for the Firefinder locating radar program and $92
million for the production of Commander's Independent Viewers
(CIVs).
Space and Airborne Systems of $964 million were down 5% compared
to $1,018 million in Q1/06, anticipating upcoming transition
of several programs from development to production. New orders
worth $96 million were booked at this segment, on a number of
classified contracts.
The Company repurchased 5.1 million shares for $275 million
as part of share repurchase program in addition to a 6% increase
to the Company's annual dividend, from $0.96 to $1.02 per share
announced in March 2007. Net debt was increased to $2.3 billion,
from $1.5 billion at year-end 2006.
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