Raytheon posts sharp drop in profit; lifts 2015 revenue forecast
By Andrea Shalal
WASHINGTON (Reuters) - Raytheon Co (RTN.N: Quote), maker of the Patriot missile system, on Thursday reported sharply lower net earnings and bookings in the third quarter, but said revenues for the full year would be higher than expected, with further growth seen in 2016.
The company's upbeat outlook drove shares over 4 percent higher to $117.49 on the New York Stock Exchange.
Chief Financial Officer Toby O'Brien said the drop in quarterly earnings was due to the mix of products, internal investments in new technologies, and costs related to the company's $1.9 billion Websense acquisition in May.
Quarterly earnings still exceeded Raytheon's expectations, he said, and business segment operating margins remained strong despite a drop to 12.3 percent, excluding adjustments for the Websense acquisition, from 13.5 percent a year earlier.
Bookings, which fell 9.6 percent in the quarter, were seen reaching $25.5 billion in 2015, plus or minus $500 million, topping the company's previous outlook by about $1 billion.
Revenues were now seen in a range of $23 billion to $23.3 billion in 2015, up from an earlier range of $22.7 billion to $23.2 billion. The company lefts its full-year forecast for earnings per share unchanged at $6.47 to $6.62.
O'Brien said sales should grow 3 percent to 4 percent in 2016, driven by new development awards, while segment margins were likely to be "flat to up."
O'Brien said international sales accounted for a record 32 percent of total quarterly sales, with the full year percentage expected to be around 30 percent. Continued...