LEXINGTON, Mass., April 11 /PRNewswire/ -- Raytheon Company
(NYSE: RTNA, RTNB) announced today that it expects earnings for the first
quarter 2000 to be negatively affected by contract problems at Raytheon
Engineers & Constructors (RE&C), and that it is currently in discussions
regarding a potential sale, joint venture or spin-off of the unit. The
problems are principally due to performance issues on one international
project.
As of the first quarter of 2000, RE&C's results will not be reported in
continuing operations. The company anticipates that the loss attributable to
RE&C operations in the first quarter will be in the range of $0.15 - $0.20 per
diluted share, and therefore expects earnings per share from its continuing
operations to meet analysts' estimates of $0.23 - $0.27 per diluted share for
the first quarter. In addition, the company anticipates that net debt for the
first quarter will increase approximately $500 million, a smaller increase
than planned and better than analysts' expectations.
"RE&C has growth potential within certain markets," said Daniel P.
Burnham, Raytheon chairman and chief executive officer. "However, the
engineering and construction business is not central to Raytheon's strategy. A
sale, joint venture or spin-off of RE&C is in the best interests of Raytheon
shareholders and RE&C."
Burnham noted that the unit has been awarded several significant
contracts, including a recent $1.1 billion award from Sithe Energies for two
power projects in the Boston area, and a $300 million contract award from AES
for the Red Oak power project in New Jersey.
Raytheon Company is a global technology leader that provides products and
services in the areas of commercial and defense electronics, engineering and
construction, and business and special mission aircraft. Raytheon has
operations throughout the United States and in more than 80 countries.
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act concerning the company's
financial results, future plans, objectives, expected performance and
potential new business awards. Specifically, statements in this release that
are not historical facts, including statements accompanied by words such as
"believe," "expect," "anticipate," "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, there is no
assurance that actual results may not differ materially. Important
factors that could cause actual results to differ include but are not limited
to: differences in anticipated and actual program results, risks inherent with
large long-term fixed price contracts, the ability to realize anticipated cost
efficiencies, the effect of market conditions, and the impact of competitive
products and pricing, among other things. Further information regarding the
factors that could cause actual results to differ from projected results can
be found in the company's reports filed with the SEC, including "Item 1 -
Business" in Raytheon's most recent Form 10-K, and this press release should
be read in conjunction with cautionary statements contained therein.
Contact:
David Polk
781.860.2386
http://www.raytheon.com
SOURCE Raytheon Company
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Related links:
http://www.raytheon.com
CONTACT:
David Polk of Raytheon Company, 781-860-2386
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