GD General Dynamics Corporation

By Doug Cameron 

Raytheon Co. said Thursday that export sales helped drive record bookings as it joined U.S. defense peers in boosting full-year profit guidance.

The missiles and missile-defense specialist said sales and profits exceeded expectations in the June quarter as its backlog climbed to $43.1 billion, up 8% from a year ago.

Domestic and overseas military spending has driven improved outlooks for most of the big defense contractors, with Lockheed Martin Corp., Northrop Grumman Corp. and General Dynamics Corp. all boosting their 2019 outlooks.

Boeing Co. has shelved financial guidance, though the backlog at its defense arm dropped in the June quarter.

Raytheon's outlook is notable as the company's growth outlook underpins its plans to merge with United Technologies Corp., to form the world's second-largest aerospace and defense company by sales after Boeing.

The proposed deal has received a mixed reception from investors, with some activists pushing for it to be dropped, arguing that Raytheon's defense-focused business doesn't mix well with the more commercially focused United Technologies aerospace business.

Raytheon's profits rose to $813 million in the June quarter from $791 million a year earlier, with per-share earnings climbing to $2.92 from $2.78. Sales rose 8.1% to $7.16 billion.

Full-year sales guidance was raised by $200 million to $29.05 billion at the midpoint, with lower interest expense raising its EPS outlook by 10 cents to $11.60 at the midpoint.

Raytheon shares rose 1% in pre-open trade.

Write to Doug Cameron at doug.cameron@wsj.com

(END) Dow Jones Newswires

July 25, 2019 07:51 ET (11:51 GMT)

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