LEXINGTON, Mass. (AP) _ Raytheon Corp. said Wednesday it expects to lose money in the third quarter and for the year after taking a $693 million charge in connection with its commuter aircraft business.

Analysts surveyed by Thompson Financial/First Call expected third-quarter earnings, excluding charges, of 42 cents per share.

The company, which planned to announce results after the markets closed Wednesday, also said it had reached an agreement on a $635.5 million purchase price adjustment stemming from the company's 1997 merger with Hughes Defense.

Hughes reimbursed Raytheon $500 million of the $9.5 billion purchase price on Tuesday, Raytheon said, and the balance will be paid in six months. Raytheon will use the proceeds to pay down debt.

Raytheon had accused Hughes of providing misleading financial information related to the sale.

Raytheon spokesman David Polk declined to offer specifics ahead of the earnings report on how much of the decline was attributable to the commuter aircraft business charge.

The after-tax effect of the charges is $484 million, or $1.36 a diluted share.

Raytheon's stock price jumped after the Sept. 11 attacks on the belief the defense contractor could benefit from increased spending in the war on terrorism. But it said its other businesses have been hit hard by the attacks.

``While Raytheon has been reducing its build rates on commuter aircraft over the last 18 months, current market conditions and the tragic events of Sept. 11 have had a significant adverse effect on both the airline industry and aircraft manufacturers, including Raytheon Aircraft Company,'' the company said in a press release.

Raytheon shares were trading down 4 cents at $34.31 in trading on the New York Stock Exchange in early afternoon trading.

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