Your Association (ARR) Met with Raytheon Executives
Details of the meeting will be highlighted
at the May 15 Annual membership meeting.
Raytheon Has a Strong Fourth Quarter
By Al Swenson and excerpts from an article by Mark in the
Feb 1, 2008 issue of the Lowell Sun
Raytheon Co. continued to receive substantial contract awards
in the fourth quarter which also has improved Raytheon's prospects for 2008 as
well. The company's fourth-quarter profit and sales exceeded analysts'
forecasts. Raytheon is the fifth-largest defense company in the world and the
major contributor to Massachusetts ranking of eighth in the nation.
Sales for the fourth quarter were reported by Raytheon of
$6.0 billion and $21.3 billion for the year, both up 8 percent. They recorded
record bookings for the quarter which resulted in a record backlog of $36.6
billion at the end of the year. Operating income was up 20% and resulted in
earnings per share of $3.80 for 2007. The company repurchased 28.7 million
shares for $1.6 billion during 2007. Also the company made $900 million in
discretionary cash contributions to the Company’s pension plan in 2007 compared
to $200 million in 2006.
The 2008 Financial Outlook by Raytheon has increased from
prior guidance to 22 plus billion in net sales and $3.65 to $3.80 in earnings
per share from continuing operations.
Raytheon's integrated defense systems unit. which is based in
Tewksburv and builds the Patriot systems, also saw its sales rise 8 percent to
$1.29 billion in the quarter. That was primarily due to growth in the U.S.
Missile Defense Agency and international programs, while operating profit rose
12 percent to $211 million, the company said
The company also announced on October 15, 2007 that it
entered a into an agreement to sell Flight Options to H.I.G. Capital, a private
investment firm. The Board of Directors in October announced the intent to
repurchase up to $2 billion of the Company’s outstanding common stock as
circumstances warrant.
New Orders
Raytheon announced that they have been awarded two contracts
totaling $241.8 million to overhaul and upgrade 34 Phalanx Close-In Weapon
System for the United States Navy and one system for the Royal Australian Navy
They will also build 12 Land Based. Systems for the United States Army. Phalanx
is a rapid –fire computer controlled radar and 20 mm gun system that
automatically acquires, tracks, and destroys enemy threats.
An award of $36.1 million was received by the company from
United States Air Force for the company for the Pave Way (TM) II guided bomb
components. This is the third consecutive Air Force majority share award for
Raytheon, setting a benchmark for affordability and performance of the
Precision-Guided weapons market. First developed in 1968 the evolving Pave Way
series for laser guided bombs revolutionized precision delivery against tactical
targets.
Raytheon Wins A $232 Million Contract to
Develop Guided Ammunition (Added 1/3/08)
Raytheon is leading a team including General Dynamics Corp. to develop
precision-guided ammunition rounds for a new weapons system., the XM1111 Mid
Range Munitions system uses infrared and a laser seeker for guidance
The award is for development and does not include funding for manufacturing.
New Orders
Raytheon announced that they have been awarded two
contracts totaling $241.8 million to overhaul and upgrade 34 Phalanx Close-In
Weapon System for the United States Navy and one system for the Royal Australian
Navy They will also build 12 Land Based. Systems for the United States Army.
Phalanx is a rapid –fire computer controlled radar and 20 mm gun system that
automatically acquires, tracks, and destroys enemy threats.
An award of $36.1 million was received by the company
from United States Air Force for the company for the Pave Way (TM) II guided
bomb components. This is the third consecutive Air Force majority share award
for Raytheon, setting a benchmark for affordability and performance of the
Precision-Guided weapons market. First developed in 1968 the evolving Pave Way
series for laser guided bombs revolutionized precision delivery against tactical
targets.
New Acquisition
Raytheon
has acquired the robotics technologies and capabilities of Sarcos, based in Salt
Lake City, Utah. Sarcos researches and develops technologies in the advanced
field for Micro-electro Mechanical Systems. Term of the transaction were not
disclosed
Raytheon Liaison
(Added 10/24/07)
Your Association (ARR) Met with Raytheon Executives
On May 18, 2007 Directors for the Association of Raytheon
Retirees attended a meeting hosted by Rich Goglia, Vice President and Treasurer
of Raytheon Company. Attending for the ARR were Joe D’Ambrose, Dave MacLellan,
Tom DiPaolo, and Allen Swenson.
On Dec. 31, 2006 the Pension Fund totaled $13.8 billion and
is distributed in investments within the allocation criteria established by the
company. That criterion is 50-75% in Equity, 20-40% in debt securities, 2-7% in
real estate, and 2-17% in other (including pension equity and cash). In the
previous year the Fund grew by $1.7 billion which was primarily driven by the
net gain in investments returns.
T
he company contribution was $.6 billion and
benefit payments of $1.0 billion were made to retirees. The investment returns
for 2006 was in excess of 15% and compares favorably with the major market
indices.
The company utilizes a significant number of different
investment firms to minimize risks. Additionally, the company employs a variety
of investment strategies and diversifications in various equity markets that
also minimizes risk. The company is required to fund annually, at a minimum,
these pension costs which are calculated in accordance with Internal Revenue
Services regulations and standards issued by the Cost Accounting Standards
Board.
The pension fund performance is also periodically reviewed
with the investment committee of the company.
Additional details and company comments may be found in the
annual report of the company included in their Form 10k submittal to the
Securities Exchange Commission.
