RAYTHEON OUTLINES BUSINESS PLAN IN ANNUAL REPORT
RAYTHEON OUTLINES BUSINESS PLAN IN ANNUAL REPORT LEXINGTON, Mass., March 31 /PRNewswire/ -- Raytheon Company's
(NYSE: RTN) plan for 1992 and beyond "is to maintain a strong government electronics base,grow our diverse and established commercial businesses, increase our global presence, and look for operational synergies to further broaden our participation in key markets," say Dennis J. Picard, Raytheon's chairman and chief executive officer, and Max E. Bleck, Raytheon's president, in the company's newly-released 1991 annual report.
In the report's letter to shareholders, the two senior executives note that Raytheon completed its seventh consecutive year of record sales, earnings, and earnings per share in 1991. Other accomplishments include: growth in commercial profits, a continued solid base in government electronics, an increase in return on sales, a decrease in debt, and an increase in the quarterly dividend. In February of this year, Raytheon's board of directors voted a two-for-one stock split. "While we expect U.S. defense budgets to continue to decline," report Picard and Bleck, "we believe we are properly positioned to meet the future needs of U.S. and allied armed forces for proven, cost-effective tactical defense systems that can respond to fast-developing regional threats. "In this era, the United States is challenged to pursue defense acquisition approaches that maintain superpower capability while keeping tight control on costs. One key approach is likely to be the upgrading of proven defense electronics systems. Raytheon is well positioned in this area." In 1991, 53.7 percent of Raytheon's $9.274 billion in sales were to the U.S. government. Orders received for defense systems and subsystems in key program areas included Patriot missile defense systems, other tactical missiles, electronic countermeasures systems, communications, and shipboard systems. The Patriot missile system, the company's largest program, accounted for $1.265 billion in sales in 1991. Funded backlog for Patriot at the end of 1991 was $1.833 billion. Beyond government sales, Picard and Bleck emphasize Raytheon's established commercial businesses. They point to
Amana's strength despite the slowdown in consumer spending, the Aircraft Products segment's improved results in a challenging economy and the Energy and Environmental segment's strong growth.
Commenting on the company's broadened and renamed Energy and Environmental segment, Picard and Bleck say, "Potential synergies with customers in Energy and Environmental markets present new opportunities for the segment -- now our second largest segment in sales." The letter to stockholders also emphasizes Raytheon's significant opportunities in the international arena: "International orders to support the vital defense needs of our nation's friends represent an area of significant potential in the years ahead ... In the commercial arena, we see strong global potential in areas such as environmental services." Picard and Bleck conclude, "We enter this era with financial strength, management depth, market diversity, and leadership in engineering, manufacturing, and quality. Most of all, we enter this era with skilled and dedicated people who have a rich heritage of meeting challenges ... The Raytheon team looks to the future with confidence." Raytheon yesterday began distributing the new annual report to the company's 23,000 stockholders. Headquartered in Lexington, Mass., Raytheon is a diversified, international, technology-based company with sales in four business segments: Electronics, Energy and Environmental, Aircraft Products and Major Appliances. -0- 3/31/92 /CONTACT: Ed Powers of Raytheon, 617-860-2415/ (RTN) CO: Raytheon ST: Massachusetts IN: ARO SU:
TM -- NE016 -- 3591 03/31/92 16:49 EST
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|Date:||Mar 31, 1992|
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