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RAYTHEON'S SECOND QUARTER EARNINGS INCREASE 9.0 PERCENT

 RAYTHEON'S SECOND QUARTER EARNINGS INCREASE 9.0 PERCENT
 LEXINGTON, Mass., July 9 /PRNewswire/ -- Raytheon Company (NYSE: RTN) earned $165.6 million, or $1.23 per share, on sales of $2.321 billion during the second quarter of 1992. In the same period last year, net income was $151.9 million, or $1.15 per share, on sales of $2.357 billion.
 "Raytheon's earnings in the second quarter continued to benefit from improved profitability in all of our commercial segments -- Energy and Environmental, Aircraft Products, and Major Appliances," said Dennis J. Picard, Raytheon's chairman and CEO.
 In the first six months of 1992, Raytheon's net income was $309.1 million, or $2.30 per share, on sales of $4.449 billion. This compares with net income of $285.6 million, or $2.17 per share, on sales of $4.610 billion during the same period last year.
 Total backlog at the end of the quarter was $7.567 billion, including funded U.S. government orders of $5.455 billion. Total backlog at the end of last year's second quarter was $8.569 billion, including funded U.S. government orders of $6.436 billion. The backlog has been affected by the timing of the pending Saudi Arabian contract for 14 Patriot fire units and 758 Patriot missiles.
 Final details of that sale are being worked out between the U.S. government and Saudi Arabia. In June, Saudi Arabia's Ambassador to the U.S., Prince Bandar Bin Sultan, reassured employees at Raytheon's Patriot production plant in Andover, Mass., that his country "will go ahead with the Patriot sale."
 Electronics. Electronics, the company's largest business area, continued its strong operating performance. Lower sales in the quarter reflect the timing of key production orders, principally the pending order of Patriot fire units and missiles for the Kingdom of Saudi Arabia.
 During the quarter, the U.S. Army awarded Raytheon a contract for 180 Patriot missiles with a total value of $124 million, plus a $14 million contract for Patriot engineering and production support.
 In April, the newest version of Patriot, the PAC-3 multimode missile, successfully completed its first flight test. The PAC-3 expands Patriot's defended-area coverage, or footprint, and enables higher-altitude intercepts of enemy missiles.
 Also during the quarter, Raytheon and the U.S. Navy conducted a successful test flight of the AEGIS-ER (Extended Range) shipboard missile. The AEGIS-ER is the next generation of the Navy's Standard Missile-2, which Raytheon is currently producing at its Bristol, Tenn., facility.
 Raytheon continued to expand its presence in air traffic control during the quarter. The company won a $24 million contract in Germany and has been selected by The Netherlands to provide a new air traffic control system for Amsterdam.
 The Federal Aviation Administration awarded Raytheon a contract with a total value of $70 million, including options, to develop Microwave Landing Systems that improve precision approach guidance for aircraft landing in poor visibility.
 In addition, Raytheon's Advanced Device Center entered into an agreement with New Japan Radio Co., Ltd., to begin producing downconverter chips for satellite television receivers.
 Energy and Environmental. During the quarter, the Energy and Environmental segment continued to grow in both sales and profits, with each of the companies in the segment achieving improved profitability.
 It was announced that United Engineers & Constructors (UE&C) was selected by a subsidiary of Hoffmann-La Roche Inc. to provide design and engineering services for a significant new pharmaceutical complex in South Carolina -- and that UE&C won a $47 million contract to design and build a natural gas-fired cogeneration plant near the city of Brush, Colo.
 The Badger Company won international engineering contracts from Corpoven S.A. for a major new petroleum refinery in Venezuela and from Yukong Limited for a lube oil plant in Korea.
 Aircraft Products. Beech Aircraft continued to grow, with sales and profits higher than those reported a year ago. During the quarter, Beech announced that British Aerospace Defence, Ltd., has joined its team pursuing the multi-billion dollar U.S. Air Force and Navy Joint Primary Aircraft Training System (JPATS) contract.
 Beech also received Federal Aviation Administration certification of the new Starship 2000A, which features improved performance and increased range. Internationally, Beech received German certification of its 1900D Airliner.
 Major Appliances. The Appliance Group reported increased sales and improved profitability compared to a year ago. These improvements resulted from strong refrigerator sales at Amana and improved operating performance at Caloric.
 During the quarter, the Appliance Group began producing and marketing new smoothtop cooktops and a simple, low-cost chlorofluorocarbon capture system for use in servicing refrigerators and freezers. In addition, Amana has received the No. 1 ranking from a leading consumer buying guide for a deluxe top-mount refrigerator.
 Provisions for federal and foreign income taxes were $84.1 million in the second quarter and $153.6 million in the first half, compared with $71.8 million and $135.0 million, respectively, last year. The effective tax rates were 33.7 percent in the second quarter and 33.2 percent in the first half, compared with 32.1 percent in both the second quarter and the first half last year. The effective rate for 1992 is higher than 1991 due to lower foreign tax credits.
 Earnings per share are based on the average number of shares outstanding during the period. Average shares outstanding were 134.5 million in the second quarter and 134.2 million in the first half, compared with 132.0 million and 131.5 million, respectively, last year.
 Worldwide employment at the end of June was 68,200.
 RAYTHEON COMPANY
 Selected Financial Data
 2nd Quarter, 1992
 Three Months Ended Six Months Ended
 June 28, June 30, June 28, June 30,
 1992 1991 1992 1991
 Net Sales (in billions) $2.321 $2.357 $4.449 $4.610
 Federal and foreign
 income taxes (in millions) $84.2 $71.8 $153.6 $135.0
 Net Income (in millions) $165.6 $151.9 $309.1 $285.6
 Earnings per
 common share-(a) $1.23 $1.15 $2.30 $2.17
 Average number of common
 shares outstanding during
 period (in millions)-(a) 134.5 132.0 134.2 131.6
 Total backlog (in billions) $7.567 $8.569 $7.567 $8.569
 Government-funded backlog
 (in billions) $5.455 $6.436 $5.455 $6.436
 Worldwide employees 68,200 74,400 68,200 74,400
 ---
 Note (a)-1991 restated for 2-for-1 stock split.
 -0- 7/9/92 R
 /CONTACT: Ed Powers of Raytheon, 617-860-2415/
 (RTN) CO: Raytheon Company ST: Massachusetts IN: ARO SU: ERN


SH -- NE017 -- 7961 07/09/92 15:45 EDT
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Date:Jul 9, 1992
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