WALTHAM, Mass., Oct. 25, 2007 /PRNewswire-FirstCall/ -- Raytheon Company
(NYSE: RTN) reported third quarter 2007 income from continuing operations of
$304 million or $0.69 per diluted share compared to $267 million or $0.59 per
diluted share in the third quarter 2006. Third quarter 2007 income from
continuing operations was higher primarily due to operational improvements,
combined with lower net interest and pension expense, partially offset by an
after-tax impairment charge of $69 million ($84 million pretax) or $0.16 per
diluted share in connection with the disposition process of Flight Options.
Third quarter 2007 income from continuing operations excluding Flight Options
was $380 million or $0.86 per diluted share compared to $274 million or $0.61
per diluted share in the third quarter 2006. (1)
Raytheon also announced that on October 15, 2007 , it entered into a
definitive agreement to sell Flight Options to H.I.G. Capital, a global
private investment firm. This transaction is expected to close in the fourth
"Our program execution, strong backlog and customer focus are driving the
Company's performance and delivering value to our shareholders," said William
H. Swanson, Raytheon Chairman and CEO. "With the pending sale of Flight
Options, going forward our attention will be focused on our core business,
leading technologies and Mission Support to our global customers."
Third quarter 2007 net income was $299 million or $0.68 per diluted share
compared to $321 million or $0.71 per diluted share in the third quarter 2006.
Net income for the third quarter 2007 included a $5 million after-tax loss in
discontinued operations or $0.01 per diluted share versus a $54 million gain
or $0.12 in the third quarter 2006. Third quarter 2006 discontinued
operations results included Raytheon Aircraft Company (RAC), which was sold by
the Company in the second quarter 2007.
Net sales for the third quarter 2007 were $5.4 billion, up 8 percent from
$4.9 billion in the third quarter 2006 led primarily by Integrated Defense
Systems (IDS), Missile Systems (MS) and Network Centric Systems (NCS).
Operating cash flow from continuing operations for the third quarter 2007
was $735 million versus $733 million for the third quarter 2006. The third
quarter 2007 included $203 million in cash tax payments versus $53 million in
cash tax payments in the third quarter 2006. Of the cash taxes paid in the
third quarter 2007, $157 million was attributable to the gain on the sale of
Year-to-date operating cash flow from continuing operations was $310
million versus $1,159 million for the comparable period in 2006. The year-to-
date decrease in operating cash flow was primarily due to $846 million in cash
tax payments ($473 million attributable to the gain on the sale of RAC) versus
$154 million of cash tax payments made in the comparable period in 2006
combined with the $400 million discretionary cash contribution made to the
Company's pension plans in the first quarter 2007 versus the $200 million
discretionary cash contribution made in the first quarter 2006.
During the third quarter 2007, the Company repurchased 8.6 million shares
for $500 million as part of the Company's previously announced share
repurchase program. The Company has repurchased 23.3 million shares of common
stock year-to-date for $1.3 billion.
The Board of Directors, on October 24, 2007 , authorized the repurchase of
up to an additional $2.0 billion of the Company's outstanding common stock.
Share repurchases will take place from time to time at management's discretion
depending on market conditions.
The Company reported total bookings for the third quarter 2007 of $6.5
billion compared to $5.4 billion in the third quarter 2006. The Company ended
the third quarter 2007 with backlog of $33.9 billion compared to $31.9 billion
at the end of the third quarter 2006 and $33.8 billion at the end of 2006.
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