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RAYTHEON REPORTS EIGHTH YEAR OF RECORD EARNINGS; REDUCED DEBT; IMPROVED COMMERCIAL PROFITS

 LEXINGTON, Mass., Jan. 21 /PRNewswire/ -- Raytheon Company (NYSE: RTN) today reported 1992 earnings of $635.1 million, an increase of 7.3 percent. Earnings per share increased to $4.72. Comparable results for 1991 were earnings of $591.8 million, and earnings per share of $4.48.
 The company also reported 1992 fourth quarter results. Earnings were $170.0 million, an increase of 7.7 percent. Earnings per share increased to $1.26. For the same period in 1991, Raytheon reported earnings of $157.8 million, and earnings per share of $1.19.
 The company reported sales of $9.058 billion in 1992 with sales of $2.395 billion in the fourth quarter. For the same periods in 1991, sales were $9.274 billion and $2.429 billion, respectively.
 "Raytheon's strategic plan is working," said Dennis J. Picard, Raytheon's chairman and chief executive officer. "Our commercial operations were key contributors to our eighth consecutive record year. Our Appliance segment doubled earnings, our Aircraft segment had record sales, and United Engineers & Constructors and Badger, in our Energy and Environmental segment, each had a strong growth year.
 "The Electronics segment, our largest business segment, paced by defense electronics, maintained its solid operating performance. And our international defense business base was further solidified with the recent receipt of two major foreign orders for Patriot -- a $1 billion Saudi Arabian contract and a $327 million Kuwait order.
 "It was a good year for our stockholders. In a difficult economic environment, Raytheon's stock appreciated 23 percent, increasing shareholder value," said Picard.
 Raytheon's total debt decreased from $1.144 billion at the end of 1991 to $732 million at the end of 1992. Debt as a percentage of equity improved from 34.4 percent at the end of 1991 to 19 percent at the end of 1992.
 In addition to record operating results and a significantly improved debt-to-equity ratio, Raytheon's board of directors in December voted a 7.7 percent quarterly dividend increase, from 32-1/2 cents per share to 35 cents per share. In November, Raytheon's board also authorized a stock repurchase plan of up to two million shares per year over the next five years to minimize the dilutive effect of the exercise of employee stock options on earnings per share.
 At year end, Raytheon's total backlog was $7.273 billion, including funded U.S. government orders of $5.311 billion. At the end of 1991, total backlog was $7.969 billion, including funded U.S. government orders of $5.759 billion.
 Electronics.
 In late December, Raytheon received a $1.03 billion Saudi Arabian Patriot contract, the largest foreign military sale in the company's history. Raytheon expects to receive additional awards under that contract to supply firing range equipment, test equipment, and other support equipment and services in the near future.
 The Saudi Arabian award was followed in early January by a $327 million Patriot order from Kuwait. This contract is expected to grow to more than $450 million through additional awards for support hardware, test equipment, and required engineering and logistical support services.
 "These awards are significant not only because of their size, but because they demonstrate the great confidence our allies and friends have in Patriot's multipurpose air defense capability," said Picard.
 In addition to these contracts, an upgraded version of the Patriot missile, now in development and incorporating a PAC-3 multimode seeker, successfully completed a number of flight tests in 1992.
 "In air defense and across our government electronics activities," said Picard, "Raytheon is extremely competitive. We have taken the steps necessary to keep our costs low and our quality high, and to maintain our technological advantage. These are integral parts of our commitment to remain a major player in the U.S. and international defense markets."
 In September, the company won a competitive $491 million U.S. Army contract for the Ground Based Radar (GBR). That award includes options which could increase the total contract value to $615 million. GBR will be used to protect the U.S. from missile attack and to protect U.S. and allied forces that may be called on to respond to regional conflicts around the world.
 During the year, Raytheon was awarded $275 million to produce 540 Advanced Medium Range Air-to-Air Missiles (AMRAAMs) -- 55 percent of the annual U.S. competitive award. The company also received more than $145 million for NATO Seasparrow and Sparrow missiles.
 Raytheon also continued to receive 65 percent of the Navy's competitive procurement for Standard Missile-2, being awarded $116 million in contracts. The Aegis Extended Range version of the Standard Missile-2, the next-generation missile for defense of U.S. ships against air and missile attack, completed flight tests to demonstrate the missile's long-range, high-altitude capabilities.
 Other Navy awards to Raytheon in 1992 include $89 million in follow- on funding for the Mk 2 submarine Combat Control System and a $71 million contract for six AN/SQQ-32 minehunting sonars. Raytheon also began design work on the Navy's new AN/AQS-20 helicopter-towed minehunting system under an $18 million award.
 In military communications, Raytheon won a $73 million contract for 57 satellite terminals for the Navy's Extremely High Frequency Satellite Communications Program and a $35 million Army contract to develop an extremely high frequency tactical communications terminal for the Milstar satellite system. Raytheon is the only contractor supplying Milstar terminals to all three branches of the service -- Army, Navy, and Air Force.
 Raytheon won a $167 million U.S. Air Force contract for the combat- proven AN/ALQ-184 airborne electronic warfare system, bringing the amount awarded to the company on that program over the years to $934 million, one of the most successful programs in Raytheon's history. The U.S. Navy awarded Raytheon a $23 million contract to supply the major share -- eight of 11 -- AN/SLQ-32 shipboard electronic warfare systems ordered in 1992.
 In non-defense government electronics, Raytheon has assumed a world leader role in air traffic control systems. In the U.S., the Federal Aviation Administration (FAA) awarded Raytheon a $70 million contract to develop Microwave Landing Systems that will aid aircraft landing in poor visibility.
 Internationally, Raytheon fortified its leadership position in air traffic control by winning awards valued at more than $125 million from Germany, The Netherlands, and India. The company also is currently nine months ahead of schedule on a new air traffic control system for Oslo, Norway, won in 1991.
 Raytheon also continued work on multiyear contracts for the FAA's Advanced Automation System and Terminal Doppler Weather Radar (TDWR), which warns of hazardous weather conditions at airports. The company is six months ahead of schedule on the TDWR program, which calls for 47 systems to be installed at airports around the country and has completed TDWR installation and testing at the Oklahoma City, Houston, and Memphis airports.
 Maintaining its strategy of continuing to strengthen its core businesses, Raytheon added two companies to its Electronics segment during the year.
 AMBER Engineering, of Goleta, Calif., which designs and produces a wide variety of state-of-the-art infrared focal plane arrays for military and civilian applications, became part of the Missile Systems Division. The acquisition of AMBER will put Raytheon in the forefront of advanced imaging infrared missile development.
 TRW LSI Products, of La Jolla, Calif., which provides data acquisition, digital signal processing, and multimedia integrated circuits for the video and imaging market, became part of Raytheon's Semiconductor Division in September.
 Early in 1993, Raytheon acquired Applied Remote Technology, a General Dynamics subsidiary located in San Diego, Calif. Applied Remote Technology supplies advanced unmanned underwater vehicles and sensor systems for military and commercial applications and will become part of Raytheon's Submarine Signal Division.
 Major Appliances.
 Raytheon's Appliance group reported higher sales, and segment profits doubled in 1992. Income in each of the appliance companies -- Amana, Caloric, and Speed Queen -- was improved over 1991. Caloric completed a major turnaround, returning to profitability in the latter part of the year -- a significant contribution to the group's profit performance.
 Raytheon introduced several new kitchen and laundry appliances in 1992, including energy efficient refrigerators from Amana and newly- designed washer and dryer lines at Speed Queen.
 An Amana top-mount refrigerator received a number-one ranking from Consumer Reports, and seven Raytheon appliances received "Best Buy" designations from Consumer's Digest.
 Aircraft Products.
 The aircraft segment had record sales due to initial deliveries on the T-1A Jayhawk contract and sales of 1900D commuters. In 1992, Beech remained the premier supplier of business jetprops with its highly- respected King Air line.
 Beech also received a follow-on $134 million U.S. Air Force contract for T-1A Jayhawks, a military version of the Beechjet 400A. This latest award brings the total funded value of Beech's contracts on the Jayhawk program to $482 million for 113 aircraft. Contract options with Beech could further increase the total to 180 aircraft.
 Sales of the Beechjet 400A matched 1991 totals, enabling Beech to capture a larger share of the light business jet market. Beech is a major manufacturer of light jet aircraft used by the U.S. Air Force and corporate aviation.
 Beech also received an order exceeding $90 million from Mesa Airlines for 20 Beech 1900D commuters and related equipment and services.
 Energy and Environmental.
 Profitability was especially strong at United Engineers & Constructors (UE&C) and The Badger Company, with the total segment showing strong double digit earnings growth from 1991.
 The segment, which serves a large and diverse customer base, won engineering, construction, and environmental services contracts worldwide -- and continued work on existing projects.
 Construction work proceeded on a $600 million petrochemical project which is part of a multi-billion dollar Mobil Oil refinery in Singapore. A $100 million alternative refrigerant plant -- the world's largest -- was completed for ICI Americas in Louisiana.
 New contracts won by UE&C include an award to provide decommissioning services for the Shoreham nuclear generating station on Long Island, N.Y.; a design and engineering contract for a Hoffmann-La Roche pharmaceutical complex in Florence, S.C.; and contracts for cogeneration plants in Brush, Colo., and Las Vegas, Nev.
 Major new contracts awarded to Badger include a contract from Petroleos Mexicanos (Pemex) for a petroleum refining facility in Mexico; an oil refinery contract from Shell in Thailand; and a contract from the China Petro-Chemical International Company for an ethylbenzene/styrene plant in Daqing, China.
 Domestic and international energy and environmental markets represent major growth areas for Raytheon during 1993.
 Provisions for federal and foreign taxes were $320.9 million in 1992 and $87.1 million for the year's fourth quarter, compared with $280.9 million and $73.3 million, respectively, in comparable periods the prior year. The effective tax rate was 33.6 percent in 1992, compared with 32.2 percent a year earlier. For the fourth quarter, the effective tax rate was 33.9 percent, compared with 31.7 percent in 1991. The effective rates for 1992 are higher than 1991 due to lower foreign tax credits.
 Earnings per share are based on the average number of shares outstanding during the period. For 1992, there was an average of 134.5 million shares outstanding, compared with 132.2 million during 1991. In the fourth quarter, there was an average of 135.0 million shares outstanding, compared with 133.3 million a year earlier.
 At year end, Raytheon employed 63,900 people worldwide.
 ----
 NOTE FOR MASSACHUSETTS EDITORS:
 Raytheon reported the following economic impact data for 1992:
 -- At year end, approximately 25,000 of the company's 63,900
 employees worked in Massachusetts.
 -- Total Bay State payroll: $1.3 billion.
 -- Massachusetts property taxes paid: $9.8 million.
 -- Raytheon purchased $343 million of goods and services from
 some 4,900 Massachusetts suppliers.
 -- Raytheon's employees contributed $3.3 million to the United
 Ways throughout eastern New England. The company made an
 additional corporate contribution of $1.1 million.
 -- Additionally, Raytheon contributed $2.3 million to
 education, health, social services, civic, and cultural
 programs within Massachusetts during 1992.
 RAYTHEON COMPANY
 SELECTED FINANCIAL DATA
 4th Quarter, 1992
 Three Months Ended Year Ended
 Dec. 31, Dec. 31, Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Dollars in millions unless
 otherwise indicated.
 Net Sales (In billions) $2.395 $2.429 $9.058 $9.274
 Operating Income $248.9 $213.5 $893.6 $821.7
 Non-operating Income,
 Net $8.2 $17.6 $62.4 $51.0
 Income Before Taxes $257.1 $231.1 $956.0 $872.7
 Federal and foreign
 income taxes $87.1 $73.3 $320.9 $280.9
 Net Income $170.0 $157.8 $635.1 $591.8
 Earnings per common
 share $1.26 $1.19 $4.72 $4.48
 Average number of common
 shares outstanding during
 period (In millions) 135.0 133.3 134.5 132.2
 Total backlog
 (In billions) $7.273 $7.969 $7.273 $7.969
 Government-funded backlog
 (In billions) $5.311 $5.759 $5.311 $5.759
 Total employees 63,900 71,600 63,900 71,600
 Segment Financial Data
 Sales Segment Income
 1992 1991 1992 1991
 Electronics $4,976 $5,501 $760 $766
 Major Appliances 1,071 998 34 17
 Aircraft Products 1,254 1,098 140 139
 Energy and
 Environmental 1,757 1,677 147 125
 Totals $9,058 $9,274 $1,081 $1,047
 -0- 1/21/93
 /CONTACT: Ed Powers of Raytheon, 617-860-2415/
 (RTN)


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

DD -- NE012 -- 7409 01/21/93 12:24 EST
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