WALTHAM, Mass. , April 24, 2008 /PRNewswire-FirstCall/ -- Raytheon Company
(NYSE: RTN) reported first quarter 2008 income from continuing operations of
"With the strong performance in the first quarter, the Company is off to a good start," said William H. Swanson , Raytheon's Chairman and CEO. "Our strong bookings, record backlog and solid operating performance demonstrate the Company is continuing to execute and is well positioned going forward."
First quarter 2008 net income was
Net sales for the first quarter 2008 were
Operating cash flow from continuing operations for the first quarter 2008
was a positive
In the first quarter 2008 the Company repurchased 5.5 million shares of
common stock for
The Company reported total bookings for the first quarter 2008 of
The Company reaffirms full-year 2008 guidance. Charts containing additional information on the Company's 2008 guidance are available on the Company's website at www.raytheon.com . See attachment F for the Company's calculation and use of Return on Invested Capital (ROIC), a non-GAAP financial measure.
Segment Results Integrated Defense Systems 1st Quarter % ($ in millions) 2008 2007 Change Net Sales $1,192 $1,092 9% Operating Income $211 $199 6% Operating Margin 17.7% 18.2% Integrated Defense Systems (IDS) had first quarter 2008 net sales of
During the quarter, IDS booked an initial
Intelligence and Information Systems (IIS) had first quarter 2008 net
sales of
During the quarter, IIS booked an additional
Missile Systems (MS) had first quarter 2008 net sales of
During the quarter, MS booked
Network Centric Systems (NCS) had first quarter 2008 net sales of
During the quarter, NCS booked
Space and Airborne Systems (SAS) had first quarter 2008 net sales of
Technical Services (TS) had first quarter 2008 net sales of
During the quarter, TS booked
Raytheon Company (NYSE: RTN), with 2007 sales of
Disclosure Regarding Forward-looking Statements
This release and the attachments contain forward-looking statements, including information regarding the Company's 2008 financial outlook, future plans, objectives, business prospects and anticipated financial performance. These forward-looking statements are not statements of historical facts and represent only the Company's current expectations regarding such matters. These statements inherently involve a wide range of known and unknown risks and uncertainties. The Company's actual actions and results could differ materially from what is expressed or implied by these statements. Specific factors that could cause such a difference include, but are not limited to: the Company's dependence on the U.S. government for a significant portion of its business and the risks associated with U.S. government sales, including changes or shifts in defense spending, uncertain funding of programs, potential termination of contracts, and difficulties in contract performance; the ability to procure new contracts; the risks of conducting business in foreign countries; the ability to comply with extensive governmental regulation, including import and export policies and procurement and other regulations; the impact of competition; the ability to develop products and technologies; the risk of cost overruns, particularly for the Company's fixed- price contracts; dependence on component availability, subcontractor performance and key suppliers; risks of a negative government audit; the use of accounting estimates in the Company's financial statements; risks associated with acquisitions, dispositions, joint ventures and other business arrangements; risks of an impairment of goodwill or other intangible assets; the outcome of contingencies and litigation matters, including government investigations; the ability to recruit and retain qualified personnel; the impact of potential security threats and other disruptions; and other factors as may be detailed from time to time in the Company's public announcements and Securities and Exchange Commission filings. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this release and the attachments or to update them to reflect events or circumstances occurring after the date of this release, including any acquisitions, dispositions or other business arrangements that may be announced or closed after such date. This release and the attachments also contain non-GAAP financial measures. A GAAP reconciliation and a discussion of the Company's use of these measures are included in this release or the attachments.
Conference Call on the First Quarter 2008 Financial Results
Raytheon's financial results conference call will be held on Thursday, April 24, 2008 at 9 a.m. EDT . Participants will include William H. Swanson , Chairman and CEO, David C. Wajsgras , senior vice president and CFO, and other Company executives.
The dial-in number for the conference call will be (866) 800 - 8651. The conference call will also be audiocast on the Internet at www.raytheon.com. Individuals may listen to the call and download charts that will be used during the call. These charts will be available for printing prior to the call.
Interested parties are encouraged to check the website ahead of time to ensure their computers are configured for the audio stream. Instructions for obtaining the free required downloadable software are posted on the site.
Media Contact: Investor Relations Contact: Jon Kasle Greg Smith 781-522-5110 781-522-5141 Attachment A Raytheon Company Preliminary Statement of Operations Information First Quarter 2008 (In millions, except per share amounts) Three Months Ended 30-Mar-08 25-Mar-07 Net sales $5,354 $4,804 Cost of sales 4,259 3,856 Administrative and selling expenses 380 330 Research and development expenses 107 97 Total operating expenses 4,746 4,283 Operating income 608 521 Interest expense 34 60 Interest income (23) (28) Other expense, net 5 3 Non-operating expense, net 16 35 Income from continuing operations before taxes 592 486 Federal and foreign income taxes 192 162 Income from continuing operations 400 324 (Loss) income from discontinued operations, net of tax (2) 22 Net income $398 $346 Earnings per share from continuing operations Basic $0.96 $0.73 Diluted $0.93 $0.71 (Loss) earnings per share from discontinued operations Basic $(0.01) $0.05 Diluted $(0.01) $0.05 Earnings per share Basic $0.95 $0.78 Diluted $0.92 $0.76 Average shares outstanding Basic 418.2 441.0 Diluted 432.3 453.5 Attachment B Raytheon Company Preliminary Segment Information First Quarter 2008 Operating Income Net Sales Operating Income As a Percent of Sales (In millions) Three Months Ended Three Months Ended Three Months Ended 30-Mar-08 25-Mar-07 30-Mar-08 25-Mar-07 30-Mar-08 25-Mar-07 Integrated Defense Systems $1,192 $1,092 $211 $199 17.7% 18.2% Intelligence and Information Systems 692 588 52 55 7.5% 9.4% Missile Systems 1,311 1,140 137 120 10.5% 10.5% Network Centric Systems 1,067 929 123 117 11.5% 12.6% Space and Airborne Systems 995 964 121 129 12.2% 13.4% Technical Services 521 463 35 23 6.7% 5.0% FAS/CAS Pension Adjustment - - (33) (62) Corporate and Eliminations (424) (372) (38) (60) Total $5,354 $4,804 $608 $521 11.4% 10.8% Attachment C Raytheon Company Other Preliminary Information First Quarter 2008 Funded (In millions) Backlog Backlog 30-Mar-08 31-Dec-07 30-Mar-08 31-Dec-07 Integrated Defense Systems $9,306 $9,296 $5,382 $4,781 Intelligence and Information Systems 5,831 5,636 2,641 2,325 Missile Systems 9,661 9,379 5,674 5,218 Network Centric Systems 5,696 5,102 4,547 3,957 Space and Airborne Systems 5,277 5,276 3,341 3,037 Technical Services 1,926 1,925 1,274 1,200 Total $37,697 $36,614 $22,859 $20,518 Bookings Three Months Ended 30-Mar-08 25-Mar-07 Total Bookings $6,516 $5,158 Attachment D Raytheon Company Preliminary Balance Sheet Information First Quarter 2008 (In millions) 30-Mar-08 31-Dec-07 Assets Cash and cash equivalents $2,287 $2,655 Accounts receivable, net 128 126 Contracts in process 4,068 3,821 Inventories 385 386 Deferred taxes 436 432 Prepaid expenses and other current assets 193 196 Total current assets 7,497 7,616 Property, plant and equipment, net 2,035 2,058 Prepaid retiree benefits 631 617 Goodwill 11,632 11,627 Other assets, net 1,339 1,363 Total assets $23,134 $23,281 Liabilities and Stockholders' Equity Advance payments and billings in excess of costs incurred $1,842 $1,845 Accounts payable 1,044 1,141 Accrued employee compensation 563 902 Other accrued expenses 1,025 900 Total current liabilities 4,474 4,788 Accrued retiree benefits and other long-term liabilities 3,038 3,016 Deferred taxes 483 451 Long-term debt 2,288 2,268 Minority interest 219 216 Stockholders' equity 12,632 12,542 Total liabilities and stockholders' equity $23,134 $23,281 Attachment E Raytheon Company Preliminary Cash Flow Information First Quarter 2008 (In millions) Three Months Ended 30-Mar-08 25-Mar-07 Net income $398 $346 Plus (less): Loss (income) from discontinued operations, net of tax 2 (22) Income from continuing operations 400 324 Depreciation 69 67 Amortization 23 19 Working capital (703) (653) Discontinued operations (10) (63) Net activity in financing receivables 20 21 Other 258 (131) Net operating cash flow 57 (416) Capital spending (43) (38) Internal use software spending (17) (15) Dividends (109) (107) Repurchases of common stock (340) (275) Debt repayments - 3 Discontinued operations - (28) Other 84 76 Total cash flow $(368) $(800) Attachment F Raytheon Company Preliminary Return on Invested Capital Non-GAAP Financial Measure First Quarter 2008 We define Return on Invested Capital (ROIC) as income from continuing operations plus after-tax net interest expense plus one-third of operating lease expense after-tax (estimate of interest portion of operating lease expense) divided by average invested capital after capitalizing operating leases (operating lease expense times a multiplier of 8), adding financial guarantees less net investment in Discontinued Operations, and adding back the cumulative minimum pension liability/impact of FAS 158. ROIC is not a measure of financial performance under generally accepted accounting principles (GAAP) and may not be defined and calculated by other companies in the same manner. ROIC should be considered supplemental to and not a substitute for financial information prepared in accordance with GAAP. We use ROIC as a measure of efficiency and effectiveness of our use of capital and as an element of management compensation. Return on Invested Capital (In millions) 2008 Guidance Low end High end of range of range Income from continuing operations Net interest expense, after-tax* Combined Combined Lease expense, after-tax* Return $1,655 $1,720 Net debt ** Equity less investment in discontinued operations Lease expense x 8 plus financial guarantees Combined Combined Minimum pension liability (cumulative) Invested capital from continuing operations*** $17,300 $17,100 ROIC 9.6% 10.1% * Effective 2008 tax rate: 34.1% (2008 guidance) ** Net debt is defined as total debt less cash and cash equivalents and is calculated using a 2 point average *** Calculated using a 2 point averageSOURCE Raytheon Company