Raytheon’s sales fall 6.3 percent

WASHINGTON — Raytheon, the world’s largest missile maker, reported a 6.3 percent decline in first-quarter sales, reflecting a slowdown in the federal marketplace.

Raytheon was the last of the top five U.S. government contractors to release quarterly earnings this week, and it had the biggest drop in revenue. Sales fell to $5.51 billion, with decreases in all four of the company’s divisions, the contractor said in a statement Thursday.

Raytheon’s net income from continuing operations rose 20 percent to $589 million, or $1.87 a share, in the quarter, which included $80 million in one-time tax benefits. That compared with $490 million, or $1.49 a share, a year earlier. The average estimate of 20 analysts surveyed by Bloomberg was $1.77 a share.

The government’s fourth-biggest contractor also spent $200 million to repurchase 2.1 million shares and boosted its dividend 10 percent to $2.42 a share.

Raytheon, based in Waltham, Mass., reaffirmed its profit forecast in January of $6.74 to $6.89 a share on sales of $22.5 billion to $23 billion.

Earlier this week, Lockheed Martin, the largest federal contractor, No. 3 General Dynamics and No. 5 Northrop Grumman reported higher profits even as sales declined due to U.S. budget cuts and a slowdown in war spending.

Diverse portfolios helped both General Dynamics and Boeing, the second-largest U.S. vendor. Boeing’s profit in the quarter topped analysts’ estimates – and the strength of its civilian airline business made it the only company among the top five to report an increase in sales.

General Dynamics’s sales dipped 1.1 percent in the quarter, less than the others that reported drops, as a sharper decline was averted due to a 20 percent gain in aerospace revenue driven by Gulfstream business jet deliveries.

Pentagon spending is slowing as the U.S. withdraws combat troops from Afghanistan and the military absorbs across-the- board budget cuts under a process known as sequestration. Some of the federal cuts were reduced when President Obama in January signed a $1.1 trillion spending bill to fund the government through Sept. 30.

Raytheon has risen 75 percent in trading in the past 12 months, compared with a 19 percent gain in the Standard &Poor’s 500 Index during that time.

More in Herald Business Journal

Best foot forward: Ferndale company to make custom shoes easy

Long specializing in insoles, Superfeet is putting 3-D machines in stores to make customized shoes.

Vegas, LA, Phoenix, and more destinations from Paine Field

Alaska Airlines will fly to eight West Coast cities out of Everett starting this fall.

Port of Everett CEO Les Reardanz has been called up and will be spending much of the year away from his office. He is going to Afghanistan. (Dan Bates / The Herald)
Port of Everett CEO reporting for duty — in Afghanistan

Les Reardanz has been called to active duty with the Navy for an eight-month deployment.

Early boarding pass: Everett’s rising passenger terminal

Here’s what to expect when two airlines begin passenger service at Paine Field later this year.

Western group asks Congress for pot biz protection

The group represents Washington, Oregon, Alaska, Hawaii, Montana and Arizona.

Airbus floats shutdown of A380 superjumbo

The aircraft is so big that some airports had to expand runways to accommodate the 550-seat plane.

Trump’s company fights efforts to shed the president’s name

“Our homes are worth more without the Trump name.”

Closing of 63 Sam’s Club stores impacts small business

The retailer has historically prided itself on the services it has provided small business members.

Ford goes ‘all in’ on electric cars with $11 billion investment

That’s up from the $4.5 billion that Ford said in late 2015 it would invest through the end of the decade.

Most Read