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RAYTHEON'S FIRST QUARTER EARNINGS UP 9.8 PERCENT ON 3.5 PERCENT INCREASE IN SALES

 LEXINGTON, Mass. April 14 /PRNewswire/ -- Raytheon Company (NYSE: RTN) earned $157.5 million, or $1.16 per share, on sales of $2.204 billion during the first quarter of 1993. In the same period last year, net income was $143.4 million, or $1.07 per share, on sales of $2.128 billion.
 Dennis J. Picard, Raytheon chairman and chief executive officer, stated that, "Sales resumed their growth in all business segments -- Electronics, Aircraft Products, Energy and Environmental, and Major Appliances -- and our profits continued to improve."
 He also stated that, "Raytheon's increase in profits was supported by continued strong operating performance in government electronics, commercial electronics, appliances, and aircraft -- and by a stronger balance sheet."
 Picard noted that, "During the quarter, consolidation was under way to form one of the largest engineering and construction companies in the world -- Raytheon Engineers & Constructors, Inc. (RE&C) -- bringing together two of Raytheon's leading engineering and construction subsidiaries, Badger and United Engineers & Constructors."
 Picard further highlighted the recent significant contract award to Raytheon Service Company for operation and maintenance of the U.S. Army's Kwajalein Missile Range in the Marshall Islands, noting that, "This contract is an affirmation of Raytheon's successful plan to grow its service operations and maintenance management business in high technology areas."
 Raytheon's total debt at the end of the first quarter was down to $700 million, compared with $732 million at year-end 1992. Debt as a percentage of equity improved from 19.0 percent at the end of 1992 to 17.7 percent at the end of the first quarter of 1993.
 Electronics. Electronics, Raytheon's largest business area, continued its strong operating performance, paced by increased domestic and foreign sales and profits in the company's government systems business.
 In January, Raytheon received a $327 million Patriot contract for Kuwait, an award that is expected to grow to more than $450 million. The Kuwait contract closely followed a $1 billion order in late December for Patriot fire units and missiles for the Kingdom of Saudi Arabia.
 During the quarter, Saudi Arabia awarded Raytheon a $580 million contract for technical assistance, training, and logistics support for Patriot and Hawk air defense systems.
 The company also was awarded a $294 million U.S. Air Force contract for 614 AMRAAM (Advanced Medium Range Air-To-Air Missile) missiles and two U.S. Navy contracts worth $113 million for Trident missile guidance components.
 During the quarter, Raytheon received several significant orders for electronic combat systems.
 The Air Force awarded the company a $77 million contract for 78 AN/ALQ-184 airborne electronic countermeasure pods. Raytheon has received more than $1 billion in AN/ALQ-184 contracts.
 During the quarter, the Navy awarded Raytheon a $7.5 million contract for three AN/SLQ-32 shipboard electronic warfare systems, supplementing a $23.5 million contract for eight systems in December. The award gives Raytheon 100 percent of this fiscal year's competitive purchase of AN/SLQ-32 systems.
 The Navy also awarded Raytheon a $44 million contract for 28 AN/SLQ- 32 Sidekick electronic countermeasure systems, with options for foreign sales that could boost the contract value to more than $52 million.
 Internationally, the Greek Air Force selected a team consisting of Raytheon, Litton Industries, and Tracor Aerospace for an integrated electronic countermeasure system valued at more than $100 million.
 The Navy awarded Raytheon a $53 million contract for transmitters for Aegis weapon system multi-function phased-array radars for four ships. The company also won a contract for an additional $12 million for fire control system transmitters for the same four ships. The latter contract includes options through 1997 that could raise its total value to $68 million.
 During the quarter, Raytheon acquired Applied Remote Technology, a supplier of advanced unmanned underwater vehicles and sensor systems, to complement existing capabilities within the company's Submarine Signal Division. In addition, the company sold one segment of its Electronic Components Division -- the Microwave Tube Operation -- to Litton Industries, and sold TAG Semiconductors of Zurich, Switzerland, to SGS- Thomson of Tours, France.
 In air traffic control business, Raytheon signed a $106 million contract, including options, with India's National Airports Authority to modernize air traffic control systems at the Bombay and Delhi airports. In addition, the company announced it is ahead of schedule on installation of a new air traffic control system in Norway.
 Raytheon also completed installation of the Terminal Doppler Weather Radar (TDWR), which detects dangerous windshear conditions, at the Houston airport -- the first of 47 systems the company will be installing at airports around the country. Shortly after the quarter ended, Raytheon completed installation of the second TDWR at Atlanta. Raytheon earned the maximum incentive fee on both installations.
 In educational publishing, several large cities across the U.S. made commitments during the quarter to purchase D.C. Heath mathematics programs.
 Aircraft Products. Beech Aircraft's operating performance continued to improve over a year ago on slightly higher sales, principally in Beech 1900 commuters and T-1A Jayhawk military trainers.
 Beech announced just after the end of the quarter it received a $22 million U.S. Army contract for five RC-12P electronic intelligence aircraft.
 Overseas, Beech leased its first Starship in the United Kingdom and received certification for the Beechjet 400A in the United Kingdom and Germany.
 Beech also successfully completed further development flight testing on the PC-9 MkII, Beech's entry in the U.S. Joint Primary Aircraft Training System competition.
 In addition, Beech announced that beginning July 1 it will sell Beechjets, the top two models of King Airs, and Starships through factory-owned sales outlets in North America.
 Energy and Environmental. Sales were higher in the quarter due to increased construction activity, but profits were lower due to the timing of engineering contract awards and start-up costs on an international project.
 During the quarter, Raytheon Service Company was awarded a contract with a potential value of $412 million to operate and maintain the Kwajalein Missile Range, which is used for launching, tracking, and collecting data for guided missile and space vehicle programs.
 In March, a joint venture between Raytheon and Fluor Daniel was selected for a $2.2 billion refinery for Rayong Refinery Company in Thailand.
 Raytheon also won a contract from the China Petro-chemical International Company for a new ethylbenzene/styrene plant in Guangdong Province, China. The award is Raytheon's third ethylbenzene/styrene contract in China within the past year.
 In addition, Raytheon won a $10 million contract for project management services for SAMAREC in Jizan, Saudi Arabia.
 Also during the quarter, Raytheon announced that it is combining United Engineers & Constructors and Badger to form a new business unit, Raytheon Engineers & Constructors, Inc. -- one of the largest engineering and construction companies in the world.
 Raytheon is combining the two companies to take advantage of the synergy created within this new full-service organization to answer the needs of its increasingly globalized markets and the trends in these markets toward design-build projects.
 During the quarter, Raytheon subsidiaries acquired three Gibbs & Hill engineering businesses to broaden the company's presence in the Far East and in the infrastructure services market, as well as to add to the company's established strength in power plant projects.
 Major Appliances. The Appliance Group reported that sales increased more than 12 percent and net income improved more than 80 percent compared with a year ago.
 Demand for refrigerators, laundry equipment, and cooking products was strong during the quarter.
 In addition, the group began producing new side-by-side refrigerators, wall ovens featuring a multiple convection cooking system, and gas and electric ranges for the mid-range of the cooking products market.
 Also, Speed Queen introduced new commercial washers and dryers with industry-exclusive features. New washers and dryers developed for the home laundry, and sold under the Speed Queen and Amana brands, have proven highly successful in the marketplace.
 Total backlog increased by $333 million from year-end 1992 to $7.606 billion. Funded U.S. government orders included above were $5.223 billion. Total backlog at the end of last year's first quarter was $8.180 billion, including a government backlog of $6.001 billion.
 Provisions for federal and foreign income taxes in the first quarter were $77.8 million in 1993 and $69.6 million in 1992. The effective tax rate was 33.1 percent in 1993 versus 32.7 percent in last year's first quarter.
 Earnings per share are based on the average number of shares outstanding during the period. In this year's first quarter, average shares outstanding were 135.8 million, compared with 133.9 million shares outstanding in the same period last year.
 Total employment at the end of March was 63,300.
 RAYTHEON COMPANY
 Selected Financial Data
 First Quarter, 1993
 Three Months Ended
 Apr. 4, Mar. 29,
 1993 1992
 (Dollars in millions unless
 otherwise indicated)
 Net Sales (In billions) $2.204 $2.128
 Operating Income $211.8 $193.7
 Non-operating Income, Net $ 23.5 $ 19.3
 Income Before Taxes $235.3 $213.0
 Federal and foreign
 income taxes $77.8 $69.6
 Net Income $157.5 $143.4
 Earnings per common share $1.16 $1.07
 Average number of common
 shares outstanding during
 period 135.8 133.9
 Total backlog (In billions) $7.606 $8.180
 Government-funded backlog
 (In billions) $5.223 $6.001
 Total employees 63,300 70,700
 -0- 4/14/93
 /CONTACT: Ed Powers of Raytheon Company, 617-860-2415/
 (RTN)


CO: Raytheon Company ST: Massachusetts IN: ARO SU: ERN

CH -- NE010 -- 0707 04/14/93 13:23 EDT
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Date:Apr 14, 1993
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