Raytheon Announces Solid Second Quarter 2013 Results

Raytheon Company announced second quarter 2013 Adjusted EPS of $1.64 per diluted share compared to $1.57 per diluted share in the second quarter 2012, up 4 percent. Second quarter 2013 EPS from continuing operations was $1.50 compared to $1.41 in the second quarter 2012, up 6 percent.

The second quarter 2012 Adjusted EPS has been revised to include the favorable $0.02 impact for the 2012 research and development (R&D) tax credit approved by Congress in January 2013. In addition, an unfavorable FAS/CAS Adjustment of $0.14 has been excluded in both second quarters 2013 and 2012 Adjusted EPS. The increase in both Adjusted EPS and EPS from continuing operations was primarily driven by operational improvements and capital deployment actions.

“Our world class technology and innovation have positioned us well to meet the global security needs of our customers, and strong program execution drove solid operating performance in the second quarter,” said William H. Swanson, Raytheon’s Chairman and CEO.

Net sales for the second quarter 2013 were $6,115 million, up 2 percent from $5,992 million in the second quarter 2012.

Operating cash flow from continuing operations for the second quarter 2013 was an outflow of $41 million compared to an outflow of $259 million for the second quarter 2012. The increase in operating cash flow from continuing operations in the second quarter 2013 compared to the second quarter 2012 was primarily due to the timing of required pension contributions.

In the second quarter 2013, the Company repurchased 3.4 million shares of common stock for $225 million as part of its previously announced share repurchase program.  Year-to-date 2013, the Company repurchased 7.6 million shares of common stock for $450 million.

The Company ended the second quarter 2013 with $1.3 billion of net debt. Net debt is defined as total debt less cash and cash equivalents and short-term investments.

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Press Release, July 29, 2013; Image: Raytheon