Gov’t spending propels income past estimates
By Ken Sweet
Arizona Daily Star
Revenue increased 6 percent year-over-year to $5.7 billion from $5.4 billion, the company reported.
The company’s per-share earnings Thursday beat both company and analyst estimates by about 6 cents a share.
“We continue to be pleased with our operating performance and positive outlook for the remainder of 2006,” said William Swanson, Chairman and CEO of Raytheon in a news release.
The missile systems business unit reported an 11 percent increase in net sales to $1.11 billion, up from $1 billion in 2005. Operating income increased to $122 million from $104 million.
The company cited increased production of the Standard Missile and development of products such as the Standard Missile-3 as reasons for the sales growth.
Several major contracts with the missile systems unit were signed during the quarter, including a $208 million classified project and $144 million for a small-diameter bomb, the company reported.
For the year, Waltham, Mass.-based Raytheon increased its 2006 profit forecast to $2.60 to $2.70 a share, up from $2.55 to $2.65.
While reporting its earnings, Raytheon announced plans to explore the possible sale or spin-off of its aircraft unit, Raytheon Aircraft Company.
Raytheon Aircraft manufactures small corporate jets and is based in Wichita, Kan. No manufacturing is done in Tucson.
Raytheon shares were down 81 cents a share, or 1.76 percent, Thursday to close at $45.15.
Contact reporter Ken Sweet at 434-4083, or e-mail at firstname.lastname@example.org