WALTHAM, Mass., July 24, 2008 /PRNewswire-FirstCall/ -- Highlights -- Sales of $5.9 billion, up 11 percent -- Operating income of $662 million, up 12 percent
-- Earnings per share (EPS) from continuing operations of
-- Solid bookings of
-- Strong operating cash flow from continuing operations of
-- Full-year guidance increased for sales, EPS, operating cash flow and ROIC
Raytheon Company (NYSE: RTN) reported second quarter 2008 income from
continuing operations of
"All of our businesses performed well and the Company had a strong second quarter," said William H. Swanson , Raytheon's Chairman and CEO. "We are increasing our financial outlook for the year as a result of our solid performance."
Second quarter 2008 net income was
Net sales for the second quarter 2008 were
Operating cash flow from continuing operations for the second quarter 2008
was a positive
In the second quarter 2008 the Company repurchased 5.2 million shares of
common stock for
The Company reported total bookings for the second quarter 2008 of
The Company has increased full-year 2008 guidance for net sales, earnings per share from continuing operations, operating cash flow from continuing operations and Return on Invested Capital (ROIC), and updated net interest expense and diluted shares. 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 ROIC, a non-GAAP financial measure.
Integrated Defense Systems (IDS) had second quarter 2008 net sales of
During the quarter, IDS booked
Intelligence and Information Systems (IIS) had second quarter 2008 net
During the quarter, IIS booked
Missile Systems (MS) had second quarter 2008 net sales of
During the quarter, MS booked
Network Centric Systems (NCS) had second quarter 2008 net sales of
During the quarter, NCS booked
Space and Airborne Systems (SAS) had second quarter 2008 net sales of
Technical Services (TS) had second 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 Second Quarter 2008 Financial Results
Raytheon's financial results conference call will be held on Thursday, July 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 (800) 901 - 5217. 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.
* Working capital (excluding pension and taxes) is a summation of changes in: accounts receivable, net, contracts in process and advance payments and billings in excess of costs incurred, inventories, prepaid expenses and other current assets, accounts payable, accrued employee compensation, and other accrued expenses from the Statements of Cash Flows.
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 impact of Statement of Financial Accounting Standards No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans (SFAS No. 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.
** 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 average
SOURCE Raytheon Company