WALTHAM, Mass. , April 24, 2008 /PRNewswire-FirstCall/ -- Raytheon Company
(NYSE: RTN) reported first quarter 2008 income from continuing operations of
$400 million or $0.93 per diluted share compared to $324 million or $0.71 per
diluted share in the first quarter 2007. First quarter 2008 income from
continuing operations was higher primarily due to increased volume, combined
with lower net interest and pension expense.
"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 $398 million or $0.92 per diluted share
compared to $346 million or $0.76 per diluted share in the first quarter 2007.
Net income for the first quarter 2008 included an after-tax loss of $2 million
or $0.01 per diluted share in discontinued operations compared to income of
$22 million or $0.05 per diluted share in the first quarter 2007 primarily due
to the results of Raytheon Aircraft Company, which was sold in the second
Net sales for the first quarter 2008 were $5.4 billion, up 11 percent from
$4.8 billion in the first quarter 2007.
Operating cash flow from continuing operations for the first quarter 2008
was a positive $67 million compared to an outflow of $353 million for the
first quarter 2007. First quarter 2007 included a $400 million discretionary
cash contribution made to the Company's pension plans.
In the first quarter 2008 the Company repurchased 5.5 million shares of
common stock for $340 million, as part of the Company's previously announced
share repurchase program. In addition, as announced in March 2008 , the
Company's Board of Directors voted to increase the Company's annual dividend
by 10 percent from $1.02 to $1.12 per share.
The Company reported total bookings for the first quarter 2008 of $6.5
billion compared to $5.2 billion in the first quarter 2007. The Company ended
the first quarter 2008 with a record backlog of $37.7 billion compared to
$36.6 billion at the end of 2007 and $33.9 billion at the end of the first
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
Integrated Defense Systems (IDS) had first quarter 2008 net sales of
$1,192 million, up 9 percent compared to $1,092 million in the first quarter
2007, primarily due to growth on Missile Defense Agency and U.S. Army
programs. IDS recorded $211 million of operating income compared to $199
million in the first quarter 2007. The increase in operating income was
primarily due to higher volume and the sale of licensed software.
During the quarter, IDS booked an initial $331 million for the design,
development and support of the Patriot system for international customers,
including $246 million for South Korea and $85 million for Taiwan . IDS also
booked $133 million to provide engineering services support for a Patriot air
and missile defense program for the U.S. Army.
Intelligence and Information Systems (IIS) had first quarter 2008 net
sales of $692 million, up 18 percent compared to $588 million in the first
quarter 2007, primarily due to new programs, including U.K. e-Borders. IIS
recorded $52 million of operating income compared to $55 million in the first
quarter 2007. The decrease in operating income was primarily due to certain
acquisition costs and other investments in cyber operations and information
security capabilities, partially offset by higher volume.
During the quarter, IIS booked an additional $182 million on the U.K.
e-Borders contract, bringing the total inception-to-date bookings for this
program to $1.6 billion. IIS also booked $556 million on a number of
classified contracts, including $171 million on a major classified program.
Missile Systems (MS) had first quarter 2008 net sales of $1,311 million,
up 15 percent compared to $1,140 million in the first quarter 2007, primarily
due to higher volume on international and development programs. MS recorded
$137 million of operating income compared to $120 million in the first quarter
2007. The increase in operating income was due to higher volume.
During the quarter, MS booked $578 million for Standard Missile-3 for the
U.S. Navy and the Missile Defense Agency. MS also booked $293 million for the
production of Tactical Tomahawk cruise missiles and $127 million for the
production of AIM-9X Sidewinder short range air-to-air missiles for the U.S.
Navy. In addition, MS booked $123 million for the production of Tube-launched
Optically guided Wire controlled (TOW) missiles for international customers
and the U.S. Marine Corps.
Network Centric Systems (NCS) had first quarter 2008 net sales of $1,067
million, up 15 percent compared to $929 million in the first quarter 2007,
primarily due to increased volume on certain U.S. Army programs. NCS recorded
$123 million of operating income compared to $117 million in the first quarter
2007. The increase in operating income was primarily due to higher volume.
During the quarter, NCS booked $309 million to provide Horizontal
Technology Integration (HTI) forward-looking infrared kits and $100 million
for Long Range Advanced Scout Surveillance Systems (LRAS3) for the U.S. Army.
NCS also booked $203 million for the production of Improved Target Acquisition
Systems (ITAS) for the U.S. Army and the U.S. Marine Corps.
Space and Airborne Systems (SAS) had first quarter 2008 net sales of $995
million, up 3 percent compared to $964 million in the first quarter 2007,
primarily due to growth on airborne sensor programs. SAS recorded $121
million of operating income compared to $129 million in the first quarter
2007. The decrease in operating income was primarily due to a change in
Technical Services (TS) had first quarter 2008 net sales of $521 million,
up 13 percent compared to $463 million in the first quarter 2007, primarily
due to training, mission support, and depot support services programs. TS
recorded operating income of $35 million in the first quarter 2008 compared to
$23 million in the first quarter 2007. The increase in operating income was
primarily due to higher volume and profit adjustments taken on certain
programs in 2007.
During the quarter, TS booked $110 million for work on the Warfighter
Field Operations Customer Support (FOCUS) contract for the U.S. Army to
provide live, virtual and constructive training services.
Raytheon Company (NYSE: RTN), with 2007 sales of $21.3 billion, is a
technology leader specializing in defense, homeland security and other
government markets throughout the world. With a history of innovation
spanning 86 years, Raytheon provides state-of-the-art electronics, mission
systems integration and other capabilities in the areas of sensing; effects;
and command, control, communications and intelligence systems, as well as a
broad range of mission support services. With headquarters in Waltham, Mass. ,
Raytheon employs 72,000 people worldwide.
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
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
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
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.
SOURCE Raytheon Company