Raytheon Loses $169 Million
LEXINGTON, Mass. (AP) _ Raytheon Co. lost $169 million during the third quarter, largely because of heavy write-downs and restructuring charges in its electronics business.
The defense contractor said Thursday the loss was equal to 50 cents per share. The results compared with $11 million in net income in the third quarter of 1998, or 3 cents a share.
The company did not provide figures for its operating earnings, which exclude one-time charges. But a company official said Raytheon’s earnings from operations were 59 cents per share, above the expectations of analysts surveyed by First Call/Thomson Financial who predicted operating profit of 55 cents a share.
In early afternoon, shares of Raytheon were trading at $28.68 3/4, down 37 1/2 cents or 1.3 percent, on the New York Stock Exchange.
Raytheon has lowered its earnings expectations twice in the past two months. Last week the company said profits would be hurt by increased competition, longer lead times for buyers to make purchasing decisions and lower margins at Raytheon Systems Co., its defense and electronics unit.
The latest report showed that sales rose to $4.73 billion in the July-September period, up 7 percent from $4.44 billion a year earlier.
The previously disclosed pretax charge of $599 million, or $1.09 per share, represents asset write-downs, restructuring and contract adjustments. Of that total, $449 million relates to the company’s electronics business, Raytheon said.
``We intend to restore confidence in Raytheon by outperforming the competition over the long term,″ said Daniel P. Burnham, the company’s chairman and chief executive officer. ``Raytheon has tremendous strengths and we’re determined to win new business and reach our full potential.″
For the first nine months of 1999, net income was $313 million, down from $495 million last year, after one-time charges and accounting changes are factored in. Earnings per share fell to $1.07 from $1.45.
Sales rose to $14.83 billion from $14.09 billion in the same period a year earlier.