Raytheon Posts Better-than-Expected Profit
January 28 2016 - 7:52AM
Dow Jones News
By Doug Cameron
Raytheon Co. on Thursday reported forecast-beating
fourth-quarter earnings and said it expects sales to accelerate
this year as the defense company ramps up exports and cybersecurity
business.
The company reported a profit of $567 million for the quarter
compared with $586 million a year earlier, with per-share earnings
climbing a penny to $1.89 as sales rose 3% to $6.33 billion.
The maker of Tomahawk missiles and the Patriot missile-defense
system is the most export-orientated of the major U.S. defense
companies, and like its peers hasn't experienced a slowdown in
business despite the drop in oil prices pressuring budgets of big
customers in the Middle East and Asia.
Raytheon, which derives around 30% of sales from outside the
U.S., forecast revenue to climb to $24 billion to $24.5 billion in
2016--compared with $23.2 billion last year--with per-share
earnings in a range of $6.80 to $7.00.
Bookings rose $7.9 billion in the quarter to close the year at
$25.2 billion.
The company is betting it can leverage the cybersecurity skills
it honed for the U.S. military and intelligence agencies to sell to
banks and retailers, investing almost $1.7 billion last year to
establish a stand-alone business, recently rebranded as Forcepoint,
in an area where its defense peers have struggled to make
money.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
January 28, 2016 07:37 ET (12:37 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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