WICHITA, Kan., June 6 /PRNewswire/ -- In a mixed market for its products,
Raytheon Aircraft will reduce its Kansas production workforce through the end
of the year by approximately 470 hourly employees through layoffs, reflecting
reduced production rates for new aircraft. Employee notices are expected to
begin this month. The company disclosed in April the elimination of about
450 salaried positions, of which 267 will have been eliminated by the end of
June.
The employee reductions announced today are associated with lower than
expected new aircraft delivery rates for Beechjet and King Air aircraft. The
company now plans to deliver 468 new aircraft in 2001, 40 fewer than the
508 total aircraft planned for this year. The reductions include 16 fewer
Beechjets and 24 fewer King Air turboprops. Raytheon Aircraft revenue is now
expected to be $3.0 billion for 2001. Raytheon has not changed its guidance
for earnings per share or cash flow for 2001 as a result of today's
announcement.
While first-quarter bookings were below anticipated levels due to an
overall economic downturn, Raytheon Aircraft has seen some improvement in the
second quarter. Demand for the company's newer top-end business jets -- the
Hawker Horizon, the mid-size Hawker 800XP, and the recently certified Premier
I entry-level business jet -- is leading to more pre-sales activity. Total
backlog for the aircraft business remains strong at more than $4 billion.
Wichita, Kansas-based Raytheon Aircraft, a subsidiary of Raytheon Company,
designs, manufactures, markets and supports jet, turboprop and piston-powered
aircraft for the world's commercial, military and regional airline markets.
It had revenues of $3.2 billion in 2000. Total Kansas employment is
approximately 9,800 employees, with 9,200 in Wichita and 600 in Salina.
With headquarters in Lexington, Mass., Raytheon Company (NYSE: RTN) is a
global leader in defense, government and commercial electronics, and business
and special mission aircraft.
Forward-looking statement
Certain statements made in this release contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995
regarding the company's future plans, objectives, and expected performance.
Specifically, statements that are not historical facts, including statements
accompanied by words such as "believe," "expect," "estimate," "intend," or
"plan" are intended to identify forward-looking statements and convey the
uncertainty of future events or outcomes. The company cautions readers that
any such forward-looking statements are based on assumptions that the company
believes are reasonable, but are subject to a wide range of risks, and actual
results may differ materially. Important factors that could cause actual
results to differ include, but are not limited to: timely development and
certification of new aircraft; the ability to contain cost growth on programs;
an extended economic downturn resulting in continued softness in orders for
new and used aircraft; the impact on recourse obligations of Raytheon Aircraft
due to changes in the collateral values of financed aircraft, particularly
commuter aircraft; the continued success of the fractional ownership business;
and the availability of used aircraft. Further information regarding the
factors that could cause actual results to differ materially from projected
results can be found in Raytheon Company's reports filed with the Securities
and Exchange Commission, including "Item 1-Business" in the company's Annual
Report on Form 10-K for the year ended December 31, 2000.
Contact:
David Polk
(781) 860-2386, Raytheon Company
Jim Gregory
(316) 676-7689, Raytheon Aircraft Company
SOURCE Raytheon Aircraft
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Related links:
http://www.raytheon.com
CONTACT:
David Polk of Raytheon Company, 781-860-2386,
or Jim Gregory of Raytheon Aircraft Company, 316-676-7689
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