-- Sales of $5.4 billion, EPS of $0.51 from Continuing Operations
-- Bookings of $8.1 billion, record backlog of $34.6 billion
-- Free cash flow from continuing operations of $736 million
WALTHAM, Mass., July 28, 2005 /PRNewswire-FirstCall/ -- Raytheon Company
(NYSE: RTN) reported second quarter 2005 income from continuing operations of
$233 million or $0.51 per diluted share compared to a loss from continuing
operations of $94 million or $0.22 per diluted share in the second quarter
2004. Second quarter 2004 income from continuing operations, excluding the
effect of charges for the settlement of a class action shareholder lawsuit and
the early retirement of debt, was $152 million or $0.35 per diluted share.
Second quarter 2005 income from continuing operations was higher due to better
operating results in the Government and Defense businesses and at Raytheon
Aircraft Company (RAC) combined with lower interest expense.
"I continue to be pleased with performance throughout the Company," said
William H. Swanson, Raytheon's Chairman and CEO. "The strength of our bookings
and record backlog demonstrate that the Company is well positioned for future
growth."
Second quarter 2005 net income was $201 million or $0.44 per diluted share
compared to a net loss of $108 million or $0.25 per diluted share in 2004.
Net income for the second quarter of 2005 included a $32 million after-tax
loss in discontinued operations or $0.07 per diluted share, primarily
attributable to foreign tax related matters, versus a $14 million after-tax
loss or $0.03 per diluted share in 2004.
Net sales for the second quarter 2005 were $5.4 billion, up 10 percent
from $4.9 billion in the comparable period in 2004. Government and Defense
sales for the quarter (after the elimination of intercompany sales) increased
8 percent to $4.5 billion from $4.2 billion in the comparable quarter. RAC
sales for the quarter increased 21 percent to $687 million from $570 million
in the 2004 comparable quarter.
Free cash flow from continuing operations for the second quarter 2005 was
$736 million versus $820 million for the comparable period in 2004, a decrease
primarily due to timing of collections. Year-to-date free cash flow was $398
million versus $620 million for the comparable period in 2004, a decrease
primarily due to a $200 million discretionary cash contribution to the
Company's pension plans made in the first quarter of 2005. Free cash flow is
defined by the Company as operating cash flow less capital spending and
internal use software spending.
During the second quarter of 2005, the Company repurchased 3.6 million
shares of common stock for $139 million as part of the Company's previously
announced $700 million share repurchase program, bringing the total shares of
common stock repurchased year-to-date to 4.9 million for $192 million.
Net debt was $4.6 billion at the end of the second quarter 2005 and at the
end of 2004.
Summary Financial Results 2nd Quarter % Six Months %
(in millions, except per
share data) 2005 2004 Change 2005 2004 Change
Net sales $5,409 $4,929 10% $10,353 $9,605 8%
Total operating expenses 4,982 4,589 9,549 9,014
Operating income 427 340 26% 804 591 36%
Non-operating expenses 70 462 151 567
Income (loss) from cont. ops.
before taxes $357 $(122) $653 $24
Income (loss) from continuing
operations $233 $(94) $429 $7
Net income (loss) $201 $(108) $367 $20
Diluted EPS from continuing
operations $0.51 $(0.22) $0.94 $0.02
Diluted EPS $0.44 $(0.25) $0.81 $0.05
Free cash flow from cont.
operations $736 $820 $398 $620
Bookings and Backlog
The Government and Defense businesses recorded strong second quarter 2005
bookings of $7.3 billion compared to bookings of $5.0 billion in the second
quarter of 2004, a 46 percent increase primarily due to two large bookings at
Integrated Defense Systems.
Raytheon Aircraft Company's second quarter 2005 bookings were $602 million
compared to $851 million in the 2004 comparable quarter. Second quarter 2004
bookings included a single order in excess of $300 million.
The Company ended the quarter with a record backlog of $34.6 billion
compared to $32.5 billion at the end of 2004. The Government and Defense
businesses ended the quarter with a backlog of $31.8 billion compared to $29.6
billion at the end of 2004.
Bookings 2nd Quarter Six Months
(in millions) 2005 2004 2005 2004
Bookings
Government and Defense $7,283 $4,976 $11,895 $12,897
Commercial 787 1,004 1,450 1,588
Total Bookings $8,070 $5,980 $13,345 $14,485
Backlog Period ending
(in millions) 06/26/05 12/31/04
Backlog $34,551 $32,543
Funded Backlog $19,287 $18,403
Outlook
The Company now expects 2005 earnings per share from continuing operations
to be $1.90 - $2.00 versus its previous guidance of $1.85 - $1.95. The
Company raised its full year guidance for net sales to $21.6 - $22.1 billion
from $21.5 - $22.0 billion. The Company now expects net interest expense to
be $285 - $300 million versus its previous guidance of $300 - $315 million.
The Company raised its full year guidance for bookings to $23.7 - $24.7
billion from $23.2 - $24.2 billion. Charts containing the Company's guidance
are available on the Company's website at http://www.raytheon.com.
2005 Financial Outlook Prior Current
Bookings $23.2B - $24.2B $23.7B - $24.7B
Net Sales $21.5B - $22.0B $21.6B - $22.1B
FAS/CAS Pension Expense $463M $463M
Interest Expense, net $300M - $315M $285M - $300M
Diluted Shares 455M 455M
EPS from Cont. Ops. $1.85 - $1.95 $1.90 - $2.00
Cont. Ops./Total Free Cash Flow $1.3B - $1.5B $1.3B - $1.5B
Segment Results
Integrated Defense Systems
2nd Quarter % Six Months %
(in millions, except margin
percent) 2005 2004 Change 2005 2004 Change
Net Sales $940 $870 8% $1,846 $1,709 8%
Operating Income $139 $104 34% $260 $198 31%
Operating Margin 14.8% 12.0% 14.1% 11.6%
Integrated Defense Systems (IDS) had second quarter 2005 net sales of
$940 million, up 8 percent compared to $870 million in the second quarter
2004, primarily due to growth in international Patriot programs and the Cobra
Judy program partially offset, as expected, by lower sales on the Sea-Based
Radar program. IDS recorded $139 million of second quarter 2005 operating
income compared to $104 million in the comparable quarter a year ago.
Operating income was higher primarily due to increased sales on international
programs and profit adjustments on contracts nearing completion.
During the quarter, IDS booked $1.7 billion of a $3 billion award to
continue the ship system integration and detail design for the U.S. Navy's
DD(X) Destroyer. IDS also booked $631 million to provide Taiwan with an Early
Warning Surveillance Radar System. These were partially offset by a backlog
adjustment of $700 million due to a customer funding profile change to the
JLENS program, which is expected to be restored to backlog later this year.
Intelligence and Information Systems
2nd Quarter % Six Months %
(in millions, except margin
percent) 2005 2004 Change 2005 2004 Change
Net Sales $630 $583 8% $1,172 $1,107 6%
Operating Income $59 $52 13% $109 $97 12%
Operating Margin 9.4% 8.9% 9.3% 8.8%
Intelligence and Information Systems (IIS) had second quarter 2005 net
sales of $630 million, up 8 percent compared to $583 million in the second
quarter 2004, primarily due to continued growth in classified programs. IIS
recorded $59 million of operating income compared to $52 million in the
comparable quarter a year ago.
During the quarter, IIS booked $430 million on a number of classified
contracts, including a major international competitive classified contract.
Missile Systems
2nd Quarter % Six Months %
(in millions, except margin
percent) 2005 2004 Change 2005 2004 Change
Net Sales $1,007 $939 7% $1,997 $1,904 5%
Operating Income $104 $106 -2% $209 $213 -2%
Operating Margin 10.3% 11.3% 10.5% 11.2%
Missile Systems (MS) had second quarter 2005 net sales of $1,007 million,
up 7 percent compared to $939 million in the second quarter 2004, primarily
due to a ramp up on Tactical Tomahawk and several new programs. MS recorded
$104 million of operating income compared to $106 million in the comparable
quarter a year ago. Last year's second quarter operating income included cost
recovery for prior year restructuring actions.
During the quarter, MS booked $163 million for the production of 251
Evolved SeaSparrow Missiles (ESSM) for the U.S. Navy and nine other allied
nations. MS also booked $111 million for a classified contract.
Network Centric Systems
2nd Quarter % Six Months %
(in millions, except margin
percent) 2005 2004 Change 2005 2004 Change
Net Sales $804 $758 6% $1,566 $1,462 7%
Operating Income $78 $64 22% $157 $118 33%
Operating Margin 9.7% 8.4% 10.0% 8.1%
Network Centric Systems (NCS) had second quarter 2005 net sales of $804
million, up 6 percent compared to $758 million in the second quarter 2004
primarily due to increased effort on development programs and communication
programs. NCS recorded operating income of $78 million compared to $64
million in the comparable quarter a year ago. Operating income was higher due
to improved performance.
During the quarter, NCS booked $485 million for the definitization of the
Ground Sensor Integrator (GSI) on the Future Combat System (FCS) contract
initially awarded in the third quarter of 2003, bringing the total booked to
over $1 billion on this program. NCS also booked $169 million for a
Horizontal Technology Integration (HTI) production follow-on contract for the
U.S. Army.
Space and Airborne Systems
2nd Quarter % Six Months %
(in millions, except margin
percent) 2005 2004 Change 2005 2004 Change
Net Sales $1,060 $985 8% $2,017 $1,998 1%
Operating Income $146 $142 3% $301 $271 11%
Operating Margin 13.8% 14.4% 14.9% 13.6%
Space and Airborne Systems (SAS) had second quarter 2005 net sales of
$1,060 million, up 8 percent compared to $985 million in the second quarter
2004 primarily due to growth in ATFLIR production and airborne radar programs.
SAS recorded $146 million of operating income compared to $142 million in the
comparable quarter a year ago.
During the quarter, SAS booked $586 million for the production of 190 APG-
79 Active Electronically Scanned Array (AESA) radars for the F/A-18 Super
Hornet program. SAS also booked $130 million on a number of classified
contracts.
Technical Services
2nd Quarter % Six Months %
(in millions, except margin 2005 2004 Change 2005 2004 Change
percent)
Net Sales $509 $478 6% $976 $928 5%
Operating Income $38 $35 9% $69 $66 5%
Operating Margin 7.5% 7.3% 7.1% 7.1%
Technical Services (TS) had second quarter 2005 net sales of $509 million,
up 6 percent compared to $478 million in the second quarter 2004. TS recorded
operating income of $38 million in the second quarter of 2005 compared to $35
million in the comparable quarter a year ago.
During the quarter, TS booked $57 million from the Defense Threat
Reduction Agency to provide improved security at Russian nuclear weapons
storage facilities under the Cooperative Threat Reduction Program. TS also
booked a mission support contract valued at $29 million to provide avionics
maintenance to AP-3C aircraft for the Australian Commonwealth.
Aircraft
2nd Quarter % Six Months %
(in millions, except margin
percent) 2005 2004 Change 2005 2004 Change
Net Sales $687 $570 21% $1,129 $944 20%
Operating Income $33 $23 43% $35 $(5)
Operating Margin 4.8% 4.0% 3.1% -0.5%
Commercial Deliveries 79 75 5% 112 100 12%
Raytheon Aircraft Company (RAC) had second quarter 2005 net sales of $687
million, up 21 percent from $570 million in the second quarter 2004. RAC
recorded operating income of $33 million in the quarter compared to $23
million in the comparable quarter in 2004. Operating income was higher
primarily due to higher sales volume and aircraft mix.
RAC delivered 79 commercial aircraft in the second quarter of 2005,
compared to 75 in the same quarter last year.
Other
Net sales for this segment in the second quarter 2005 were $189 million
compared to $153 million in the second quarter 2004. The segment recorded an
operating loss of $20 million in the second quarter 2005 compared to an
operating loss of $7 million in the comparable quarter in 2004.
Discontinued Operations
During the quarter, the Company recorded an after-tax loss from
discontinued operations of $32 million or $0.07 per diluted share related to
its former engineering and construction and Aircraft Integration Systems
businesses. The $32 million after-tax loss includes a $23 million charge in
the quarter for foreign tax related matters.
Raytheon Company (NYSE: RTN), with 2004 sales of $20.2 billion, is an
industry leader in defense and government electronics, space, information
technology, technical services, and business and special mission aircraft.
With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.
Disclosure Regarding Forward-looking Statements
Certain statements included 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 products and technology
systems; termination of government contracts; program performance, including
resolution of claims; 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 government investigations; the ultimate resolution of insurance
coverage for class action shareholder and derivative lawsuits against the
Company; the effect of regulatory actions and market conditions, particularly
in relation to the general aviation, commuter, and fractional aircraft
businesses; cost growth risks inherent with large long-term fixed price
contracts; conflicts with other investors and business risks in joint ventures
and less than wholly-owned businesses; and risks associated with our former
engineering and construction business related to outstanding letters of
credit, surety bonds, guarantees and similar agreements and the resolution of
claims and litigation. Further information regarding the factors that could
cause actual results to differ materially from the projected results can be
found in the Company's filings with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the year ended December
31, 2004 and quarterly reports on Form 10-Q, copies of which may be obtained
at the Company's website at http://www.raytheon.com.
Conference Call on the Second Quarter 2005 Financial Results
Raytheon's financial results conference call will be Thursday, July 28,
2005 at 9 a.m. EDT. Participants will be William H. Swanson, Chairman and CEO,
Biggs C. Porter, vice president and corporate controller, and acting CFO, and
other Company executives.
The dial-in number for the conference call will be (800) 265 - 0241. The
conference call will also be audiocast on the Internet at
http://www.raytheon.com. Individuals may listen to the call and download
charts that will be used during the call. These charts will be available for
printing prior to the call.
Interested parties are urged to check the website ahead of time to ensure
their computers are configured for the audio stream. Instructions for
obtaining the free required downloadable software are posted on the site.
Media Contact: Investor Relations Contact:
James Fetig Greg Smith
781-522-5111 781-522-5141
Attachment A
Raytheon Company
Financial Information
Second Quarter 2005
(In millions except per share amounts) Three Months Ended Six Months Ended
26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04
Net sales $5,409 $4,929 $10,353 $9,605
Cost of sales 4,490 4,117 8,608 8,113
Administrative and selling expenses 356 345 705 659
Research and development expenses 136 127 236 242
Total operating expenses 4,982 4,589 9,549 9,014
Operating income 427 340 804 591
Interest expense 82 109 158 226
Interest income (12) (10) (24) (22)
Other expense, net - 363 17 363
Non-operating expense, net 70 462 151 567
Income (loss) from continuing
operations before taxes 357 (122) 653 24
Federal and foreign income taxes 124 (28) 224 17
Income (loss) from continuing
operations 233 (94) 429 7
Loss from discontinued operations, net
of tax (32) (14) (62) (28)
Income (loss) before accounting change 201 (108) 367 (21)
Cumulative effect of change in
accounting principle, net of tax - - - 41
Net income (loss) $201 $(108) $367 $20
Earnings (loss) per share from
continuing operations
Basic $0.52 $(0.22) $0.95 $0.02
Diluted $0.51 $(0.22) $0.94 $0.02
Loss per share from discontinued
operations
Basic $(0.07) $(0.03) $(0.14) $(0.07)
Diluted $(0.07) $(0.03) $(0.14) $(0.07)
Earnings per share from cumulative
effect of change in
accounting principle
Basic $- $- $- $0.10
Diluted $- $- $- $0.10
Earnings (loss) per share
Basic $0.45 $(0.25) $0.82 $0.05
Diluted $0.44 $(0.25) $0.81 $0.05
Average shares outstanding
Basic 449.0 434.6 449.8 426.6
Diluted 455.1 434.6 455.6 429.3
Attachment B
Raytheon Company
Segment Information
Second Quarter 2005
(In millions)
Operating Income
Net Sales Operating Income As a Percent of Sales
Three Months Ended Three Months Ended Three Months Ended
26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04
Integrated Defense
Systems $940 $870 $139 $104 14.8% 12.0%
Intelligence
and Information
Systems 630 583 59 52 9.4% 8.9%
Missile Systems 1,007 939 104 106 10.3% 11.3%
Network Centric
Systems 804 758 78 64 9.7% 8.4%
Space and Airborne
Systems 1,060 985 146 142 13.8% 14.4%
Technical Services 509 478 38 35 7.5% 7.3%
Aircraft 687 570 33 23 4.8% 4.0%
Other 189 153 (20) (7) -10.6% -4.6%
FAS/CAS Pension
Adjustment - - (116) (118)
Corporate and
Eliminations (417) (407) (34) (61)
Total $5,409 $4,929 $427 $340 7.9% 6.9%
Operating Income
Net Sales Operating Income As a Percent of Sales
Six Months Ended Six Months Ended Six Months Ended
26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04
Integrated Defense
Systems $1,846 $1,709 $260 $198 14.1% 11.6%
Intelligence and
Information
Systems 1,172 1,107 109 97 9.3% 8.8%
Missile Systems 1,997 1,904 209 213 10.5% 11.2%
Network Centric
Systems 1,566 1,462 157 118 10.0% 8.1%
Space and Airborne
Systems 2,017 1,998 301 271 14.9% 13.6%
Technical Services 976 928 69 66 7.1% 7.1%
Aircraft 1,129 944 35 (5) 3.1% -0.5%
Other 381 328 (41) (22) -10.8% -6.7%
FAS/CAS Pension
Adjustment - - (232) (239)
Corporate and
Eliminations (731) (775) (63) (106)
Total $10,353 $9,605 $804 $591 7.8% 6.2%
Attachment C
Raytheon Company
Other Information
Second Quarter 2005
Funded
Backlog Backlog
(In millions) (In millions)
26-Jun-05 31-Dec-04 26-Jun-05 31-Dec-04
Integrated Defense Systems $7,454 $6,628 $3,630 $3,454
Intelligence and Information
Systems 4,019 4,066 840 811
Missile Systems 8,618 8,341 4,931 4,517
Network Centric Systems 4,332 3,587 3,052 2,623
Space and Airborne Systems 5,715 5,216 3,129 3,127
Technical Services 1,644 1,773 936 939
Aircraft 2,499 2,638 2,499 2,638
Other 270 294 270 294
$34,551 $32,543 $19,287 $18,403
Government and Defense businesses $31,782 $29,611 $16,518 $15,471
U.S. government backlog included
above $28,018 $25,525
Bookings
(In millions)
Three months ended
26-Jun-05 27-Jun-04
Government and Defense businesses $7,283 $4,976
Commercial businesses 787 1,004
$8,070 $5,980
New Aircraft Deliveries (Units)
Three Months Ended
26-Jun-05 27-Jun-04
Horizon - -
Hawker 800XP 13 14
Premier I 6 9
Hawker 400XP 16 5
King Air 27 22
1900D Commuter - -
Pistons 25 25
T-6A 17 20
Total 104 95
New Aircraft Bookings (Units)
Three Months Ended
26-Jun-05 27-Jun-04
Horizon 1 1
Hawker 800XP 13 35
Premier I 6 10
Hawker 400XP 8 26
King Air 42 31
1900D Commuter - -
Pistons 14 12
T-6A - -
Total 84 115
Attachment D
Raytheon Company
Preliminary Financial Information
Second Quarter 2005
(In millions)
Balance sheets
26-Jun-05 31-Dec-04
Assets
Cash and cash equivalents $454 $556
Accounts receivable 410 478
Contracts in process 3,689 3,514
Inventories 1,960 1,745
Deferred federal and foreign income
taxes 436 469
Prepaid expenses and other current
assets 325 343
Assets from discontinued operations 17 19
Total current assets 7,291 7,124
Property, plant and equipment, net 2,623 2,738
Deferred federal and foreign income
taxes - 71
Goodwill 11,511 11,516
Other assets, net 2,553 2,704
Total assets $23,978 $24,153
Liabilities and Stockholders' Equity
Notes payable and current portion of
long-term debt $468 $516
Subordinated notes payable 408 -
Advance payments and billings in
excess of costs incurred 1,919 1,900
Accounts payable 952 867
Accrued salaries and wages 799 934
Other accrued expenses 1,326 1,403
Liabilities from discontinued
operations 31 24
Total current liabilities 5,903 5,644
Accrued retiree benefits and other
long-term liabilities 3,130 3,224
Deferred federal and foreign income
taxes 65 -
Long-term debt 4,219 4,229
Subordinated notes payable - 408
Minority interest 126 97
Stockholders' equity 10,535 10,551
Total liabilities and
stockholders' equity $23,978 $24,153
Attachment E
Raytheon Company
Preliminary Cash Flow Information
Second Quarter 2005
(In millions)
Cash flow information
Three Months Ended Six Months Ended
26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04
Income from continuing
operations $233 $(94) $429 $7
Depreciation 88 89 176 174
Amortization 22 19 42 35
Working capital 283 888 (351) 277
Discontinued operations (49) (25) (52) (16)
Capital spending (64) (74) (112) (134)
Internal use software spending (20) (25) (36) (50)
Net activity in financing
receivables 46 2 91 97
Other 148 15 159 214
Subtotal -- free cash flow (a) 687 795 346 604
Sale of short-term investments - (74) - (74)
Acquisitions - - (60) (70)
Investment activity and divestitures - - 7 4
Dividends (100) (85) (190) (168)
Issuance of common stock - 863 - 867
Repurchase of common stock (139) - (192) -
Debt borrowings (repayments) (484) (855) (62) (858)
Other 33 20 49 38
Total cash flow $(3) $664 $(102) $343
Segment free cash flow information
Three Months Ended Six Months Ended
26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04
Integrated Defense Systems $70 $322 $160 $193
Intelligence and Information Systems 58 77 15 34
Missile Systems 231 233 282 192
Network Centric Systems 142 57 2 (72)
Space and Airborne Systems 69 222 (178) 107
Technical Services 32 (12) 14 3
Aircraft (59) (9) (7) 47
Other 15 (68) 24 (50)
Discontinued operations (49) (25) (52) (16)
Corporate 178 (2) 86 166
$687 $795 $346 $604
(a) See Attachment F for a description of free cash flow.
Attachment F
Raytheon Company
Non-GAAP Financial Measures
Second Quarter 2005
This release contains non-GAAP financial measures (as defined by SEC
Regulation G). While these non-GAAP financial measures may be useful in
evaluating the Company, this information should be considered supplemental to
and not as a substitute for financial information prepared in accordance with
generally accepted accounting principles.
The following measures are considered "non-GAAP" financial measures under
SEC guidelines:
(i) Free cash flow
(ii) Income from Continuing Operations and EPS Excluding Charges Related
to Class Action Lawsuit Settlement and Early Retirement of Debt
Free cash flow is a "non-GAAP" financial measure under SEC regulations.
The Company defines free cash flow as operating cash flow less capital
spending and internal use software spending. Our definition may differ from
similarly titled measures used by others. The Company uses free cash flow to
facilitate management's internal comparisons to the Company's historical
operating results and to competitors' operating results and as an element of
management incentive compensation. The Company believes disclosure of free
cash flow performance provides investors greater transparency with respect to
information used by management in its financial and operational decision
making. The Company also uses non-GAAP financial measures which exclude
certain charges and credits because it believes that such items are not
indicative of its core operating results, are not indicative of trends, and do
not provide meaningful comparisons with other reporting periods.
Free cash flow
Three Months Ended Six Months Ended
26-Jun-05 27-Jun-04 26-Jun-05 27-Jun-04
Operating cash flow $771 $894 $494 $788
Less: Capital spending (64) (74) (112) (134)
Internal use software
spending (20) (25) (36) (50)
Free cash flow 687 795 346 604
Plus: Discontinued
operations 49 25 52 16
Free cash flow from
continuing operations $736 $820 $398 $620
Free cash flow guidance
2005 Current Guidance
Full year Low end of range High end of range
Operating cash flow $1,735 $1,895
Less: Capital and internal
software spending (500) (450)
Free cash flow 1,235 1,445
Plus: Discontinued
operations 80 75
Free cash flow from
continuing operations $1,315 $1,520
2004 Income From Continuing Operations and EPS Excluding Charges Related
to Class Action Lawsuit Settlement and Early Retirement of Debt
Three Months Ended
27-Jun-04
Income from EPS from
continuing continuing
operations operations
GAAP, as reported $(94) $(0.22)
Excluding settlement of
class action lawsuit charge (222) (0.51)
Excluding early retirement
of debt charge (24) (0.06)
Non-GAAP $152 $0.35
SOURCE Raytheon Company
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Related links:
http://www.raytheon.com
CONTACT:
Media Contact: James Fetig, +1-781-522-5111,
or Investor Relations Contact: Greg Smith, +1-781-522-5141, both
of Raytheon Company
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