Expects to meet or exceed second quarter financial objectives for
continuing operations
LEXINGTON, Mass., June 26 /PRNewswire-FirstCall/ --
Raytheon Company (NYSE: RTN) said today that while it has made considerable
progress toward the completion of the two Massachusetts power plants it is
building for Exelon Power, it will not complete construction of the Fore River
facility in Weymouth, Mass., by June 30, 2003 as previously expected. The
testing phase has commenced at the Fore River facility and the Company expects
to transfer control of the facility to Exelon in July. Exelon announced
earlier this month it had taken control of the Mystic facility in Everett,
Mass., and the facility has entered commercial operation.
Total costs to complete the projects have increased by approximately $90
million, primarily the result of schedule delays and technical issues
experienced during commissioning processes for the projects. Separately, the
Company is pursuing recovery actions to reduce the total project costs. The
company expects to complete its assessment of the project costs in connection
with the closing of the second quarter and record a charge of approximately
$90 million to discontinued operations for these projects.
Separately, Raytheon expects second quarter 2003 results from continuing
operations will meet or exceed its financial objectives for the quarter
including bookings, sales, operating income, EPS and cash flow. Raytheon
expects to issue its second quarter 2003 earnings results and host its
earnings conference call on Thursday, July 24, 2003.
Raytheon Company, with 2002 sales of $16.8 billion, is an industry leader
in defense, government and commercial electronics, space, information
technology, technical services, and business and special mission aircraft.
With headquarters in Lexington, Mass., Raytheon employs more than 76,000
people worldwide.
Disclosure regarding forward-looking statement:
Certain statements made in this release, including any statements relating
to the Company's future plans, objectives, and projected future financial
performance, contain or are based on, forward-looking statements within the
meaning of the federal securities laws. Specifically, statements that are not
historical facts, including statements accompanied by words such as "believe,"
"expect," "estimate," "intend," or "plan," and variations of these words and
similar expressions, 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. The Company expressly disclaims any
current intention to provide updates to forward-looking statements, and the
estimates and assumptions associated with them, after the date of this
release. Important factors that could cause actual results to differ include,
but are not limited to: the ability to obtain or the timing of obtaining
future government awards; the availability of government funding; changes in
government or customer priorities due to program reviews or revisions to
strategic objectives; difficulties in developing and producing operationally
advanced technology systems; termination of government contracts; program
performance and timing of contract payments; the performance of critical
subcontractors; government import and export policies and other government
regulations; the ultimate resolution of contingencies and legal matters,
including investigations; the effect of market conditions, particularly in
relation to the general aviation and commuter aircraft markets; the
uncertainty of the timing and amount of net realizable value of Boeing
Business Jet-related assets; the Company's lack of construction industry
expertise resulting from the Company's sale of its Engineers and Constructors
business; the timing of project completion and customer acceptance of two
Massachusetts construction projects; further delays and cost growth arising
from testing and commissioning processes conducted at the Massachusetts
projects; the final determination by the Company of the required expenditures
to complete the Massachusetts projects; and the impact of change orders, the
recoverability of the Company's claims and the outcome of defending claims
asserted against the Company. Further information regarding the factors that
could cause actual results to differ materially from the Company's
expectations are disclosed in the Company's SEC filings, including the Annual
Report on Form 10-K for the year ended December 31, 2002 and Form 10-Q for the
quarter ended March 30, 2003.
Contact:
Amy Hosmer
781.860.2423
SOURCE Raytheon Company
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Related links:
http://www.raytheon.com
CONTACT:
Amy Hosmer for Raytheon Company,
+1-781-860-2423
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