Raytheon Earnings Rise 12 Percent
LEXINGTON, Mass. (AP) _ Raytheon Co. today reported a 12 percent increase in quarterly earnings, due mostly to a one-time special charge a year ago.
Raytheon, a defense contractor, said net earnings for its third quarter were $211.2 million, or 89 cents a share, compared with $187.9 million, or 80 cents a share, for the same quarter in 1996.
Without the after-tax charge, Raytheon’s earnings for the third quarter of last year would have been $210 million and its per-share profit would have remained flat.
The earnings were 4 cents a share below projections by analysts surveyed by First Call.
Sales for the quarter, which ended Sept. 28, were $3.45 billion, up 14 percent from $3.03 billion for the third quarter of 1996.
During the quarter, Raytheon completed its acquisition of Texas Instruments’ defense business. The company also sold several appliance operations, including its Amana brand, a transaction that added 3 cents a share to earnings.
The purchase of Raytheon TI Systems also contributed to a 20 percent increase in backlog for the quarter. At the end of the quarter, backlog stood at $13.5 billion, up $2.3 billion from a year earlier. Raytheon TI Systems had $1.9 billion of that backlog.
Raytheon TI Systems and E-Systems were the company’s best-performing defense businesses, with Raytheon Aircraft leading commercial operations, said Dennis Picard, chairman and chief executive officer.
In addition to the TI defense business, Raytheon has received conditional approval to acquire Hughes Electronics’ defense operations. The two mergers will make Raytheon one of the country’s largest defense contractors, with more than 120,000 employees. Sales are expected to reach $20 billion, $13 billion of that in defense and government electronics.
Lexington-based Raytheon has businesses in defense and commercial electronics, engineering and construction. It also makes appliances and aircraft.