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Raytheon Sees Slowing With Latest Earnings Report

Raytheon (RTN) also posted their third quarter results and did not do so well as some of its peers. Not only did earnings and profits fall from a year ago the company is more pessimistic about the whole of 2011. While several other defense contractors also saw reduced sales they all were able to increase profit due to cost cutting efforts and how their money was earned.

Raytheon on the other hand who specializes in radars and missiles reported profit of $1.43 a share which is well below last year’s $1.94. Sales were $6.13 billion only down a little. Analysts had expected lower earnings on more revenue.

Raytheon also lowered its predictions for the year from $25.5 – 26.3 billion to $25 to 25.3 billion. The company suffered as sales at its Integrated Defense Systems were lower due to reduced demand for its electronic systems and sales of the PATRIOT air defense missile. The Network Centric Systems vision also suffered. Other divisions did better but overall the company saw lower profit.

The company is hoping that foriegn sales of systems like the PATRIOTS and air launched missiles will help make up for any further reductions in U.S. defense spending. The company is bidding on the Army’s Joint Air-to-Ground (JAGM) missile system which will be used from helicopters and fixed wing aircraft and has the potential for several billion in sales. They are teamed with Boeing (BA) and competing against Lockheed Martin (LMT).

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