Weapons demand boosts Raytheon's 2Q net

2013-07-26T00:00:00Z Weapons demand boosts Raytheon's 2Q netThe Associated Press The Associated Press
July 26, 2013 12:00 am  • 

WALTHAM, Mass. - Raytheon Co., parent of Tucson-based Raytheon Missile Systems, said Thursday that its second-quarter net income rose nearly 4 percent on higher demand for its weapons. The defense contractor also raised its outlook for the year.

Second-quarter sales at the Tucson missile unit rose 7 percent from last year, to $1.69 billion, while operating income increased 2 percent from second-quarter 2012.

The Waltham, Mass.-based parent company said it earned $488 million, or $1.50 per share, in the three months ending June 30. That's up from $471, or $1.41 per share, in the same quarter a year ago.

After removing the effect of a tax credit and other items, the company said that it earned $1.64 per share. That's above the $1.30 per share that analysts, on average, were expecting, according financial information company FactSet.

Revenue rose 2 percent to $6.1 billion from $6 billion. Analysts expected revenue of $5.7 billion, according to FactSet.

Raytheon Missile Systems saw its overall net sales rise primarily due to higher sales of its Standard Missile-3 missile-defense interceptor and international sales of Paveway guided-bomb kits.

During the quarter, Missile Systems booked $543 million in contracts for Advanced Medium-Range Air-to-Air Missiles (AMRAAM) for the U.S. Air Force, the U.S. Navy and international customers; $228 million for SM-3 for the Missile Defense Agency; $224 million for the Exoatmospheric Kill Vehicle, a nonexplosive interceptor warhead, for the MDA; $132 million for Paveway kits for international customers; and $98 million for the Joint Stand-off Weapon guided glide bomb for the U.S. Navy and international customers.

Sales at Raytheon's Integrated Defense Systems business unit rose 9 percent compared with second-quarter 2013, to $1.72 billion.

Among other operating units, net sales fell 2 percent at Raytheon's Intelligence, Information and Services unit, while sales at its Space and Airborne Systems unit fell 5 percent, mainly due to lower sales of classified programs, the company said.

Parent Raytheon Co. said it expects its revenue for 2013 to be between $23.5 billion and $23.7 billion. That's higher than its prior forecast of $23.2 billion to $23.7 billion. It expects adjusted earnings between $6 per share and $6.10 per share, up from an earlier forecast of $5.75 per share to $5.90 per share.

Analysts expect earnings of $5.44 per share and revenue of $23.5 billion for the year, according to FactSet.

Raytheon said that it ended the second quarter with a backlog of $32.4 billion, compared with $33.9 billion in the same period a year ago. Having a backlog can indicate future revenue for the company.

Did You Know?

Raytheon Missile Systems is Southern Arizona's largest private employer, reporting 10,300 full-time- equivalent employees in the Star 200 survey of the region's major employers.

Assistant Business Editor David Wichner contributed to this report.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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