Company ended “year of economic uncertainly” by focusing of program performance, chairman and CEO says.
Raytheon Co. reported $24.85 billion in net sales for fiscal 2011, a 1 percent decline from the $25.18 billion in fiscal 2010, according to a company statement released Jan. 26.
The company ended the fourth quarter with $6.44 billion in net sales, for a 6 percent decline from the $6.88 billion in the corresponding quarter a year ago.
Adjusted earnings per share (EPS) was $1.74 per diluted share compared to $1.55 per diluted share in the fourth quarter 2010. The increase was driven by operational improvements and capital deployment actions, the company statement explained.
"In a year of economic uncertainty, the Raytheon team focused on what we do best - ensuring customer success through program performance and product innovation," said William Swanson, Raytheon's chairman and CEO.
"Improved efficiencies and lower costs drove operating margin and earnings performance, while global demand for our affordable solutions resulted in strong orders," he said.
Raytheon’s Intelligence and Information Systems (IIS) business unit recorded $753 million in fourth-quarter 2011 net sales compared to $820 million in the fourth quarter 2010, an 8 percent decline that Raytheon said was primarily due to lower sales on domestic programs.
IIS recorded $74 million of operating income compared to $67 million in the fourth quarter 2010. Fourth quarter 2011 operating income included the recovery of an insurance claim, the statement said.
During the quarter, IIS booked $433 million on a number of classified contracts.
In addition, as previously announced during the quarter, the company acquired Pikewerks Corp. and Henggeler Computer Consultants Inc., further extending Raytheon’s capabilities to serve the cybersecurity, enterprise architecture and systems engineering needs of customers in the intelligence community as well as in the Defense Department.
IIS had full-year 2011 net sales of $3.01 billion, a 9 percent gain compared to $2.75 billion in 2010.
During the year, IIS booked $520 million on the Joint Polar Satellite System (JPSS) program for NASA and $183 million on a contract to provide intelligence, surveillance and reconnaissance (ISR) support to the Air Force.
IIS also booked $1,554 million on a number of classified contracts.
Network Centric Systems (NCS) business reported fourth-quarter 2011 net sales of $1.13 billion compared to $1.31 billion in the fourth quarter 2010, a 13 percent decline.
The drop in net sales was primarily due to lower sales of Army programs.
For the full year 2011 NCS had net sales of $4.49 billion compared to $4.91 billion in 2010, a 9 percent decline primarily due to lower sales of Army programs, the company said.
Technical Services (TS) had fourth-quarter 2011 net sales of $886 million compared to $964 million in the fourth quarter 2010 for an 8 percent drop.
The change in net sales was primarily due to lower sales on programs nearing completion, including a Defense Threat Reduction Agency program and a Transportation Security Administration program.
During the quarter, TS booked $39 million on domestic training programs and $98 million on foreign training programs.
TS had full-year 2011 net sales of $3.35 billion compared to $3.47 billion in 2010 for a 3 percent decline.
The change in net sales – primarily due to lower sales on a DTRA program, which is nearing completion, and on Warfighter FOCUS program – was partially offset by higher sales on various depot services operations programs, Raytheon explained.
During the year, TS booked $994 million on domestic training programs and $347 million on foreign training programs in support of the Warfighter FOCUS activities.
TS also booked $150 million to provide operational and logistics support to the National Science Foundation Office of Polar Programs; $120 million to design, develop and deliver technical training for an unnamed commercial customer; and $100 million for base operations, maintenance and support services at the Harold E. Holt Naval Communications station in Australia.
The complete report is available at Raytheon.com.
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