Raytheon Sees 2013 Profit Falling Short of Predictions

Raytheon Co. (RTN), the world’s largest missile maker, forecast 2013 profit will fall short of analysts’ estimates after fourth-quarter earnings declined from a year earlier.

Profit from continuing operations for 2013 will be $5.16 to $5.31 a share, the company said today in a statement. The average of 22 analysts surveyed by Bloomberg was for a profit of $5.46 a share on sales of $24.1 billion.

Raytheon followed General Dynamics Corp. (GD) by a day in offering a 2013 forecast that was worse than analysts had predicted. U.S. defense contractors face an uncertain future, with Pentagon spending under pressure because of efforts to reduce the federal deficit.

For the fourth quarter, Raytheon’s profit from continuing operations was $466 million or $1.41 a share, compared with $539 million or $1.56 a share a year earlier, the Waltham, Massachusetts-based company said in the statement. The average of 21 analysts surveyed by Bloomberg forecast a profit of $1.31 a share. Sales increased less than 1 percent to $6.44 billion.

Raytheon’s Chairman and Chief Executive Officer Bill Swanson said in the statement that the company’s diversity of programs and international sales “should help to mitigate some of the potential overall impact” of defense cuts.

Photographer: Matthew Staver/Bloomberg

Raytheon’s Chairman and Chief Executive Officer Bill Swanson said in the statement that the company’s diversity of programs and international sales “should help to mitigate some of the potential overall impact” of defense cuts. Close

Raytheon’s Chairman and Chief Executive Officer Bill Swanson said in the statement that... Read More

Close
Open
Photographer: Matthew Staver/Bloomberg

Raytheon’s Chairman and Chief Executive Officer Bill Swanson said in the statement that the company’s diversity of programs and international sales “should help to mitigate some of the potential overall impact” of defense cuts.

Raytheon fell 2 percent to $57.06 at 10:06 a.m. in New York trading after gaining 17 percent in the past 12 months.

To contact the reporter on this story: Gopal Ratnam in Washington at gratnam1@bloomberg.net

To contact the editor responsible for this story: John Walcott at jwalcott9@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.