Raytheon quarterly sales increase 5.5% on Patriot and classified contracts

Raytheon Company announced a 5.5 percent increase in net sales for the second quarter 2018 driven in part by sales of the Patriot missile defense system and classified government contracts.

In a report released on Thursday, July 26, the company said its net sales for the quarter were up 5.5 percent to $6.6 billion compared to $6.3 billion in the second quarter 2017.

Patriot sales

The numbers were driven in part by $1.514 billion in net sales from the Integrated Defense Systems segment, up 4 percent from $1.462 billion in the same period last year. The increase in net sales was primarily due to higher net sales of the Patriot missile defense system to Romania.

In May, the U.S. Army awarded Raytheon a $395.8 million contract to build Romania’s first Patriot fire unit.

Other sales included $274 million for the Collins class submarine program for the Royal Australian Navy; U.S. Navy purchases of the Air and Missile Defense Radar (AMDR) program for $148 million and Barracuda mine neutralization system for $83 million; and $95 million Multi-Function RF System (MFRFS) program for the U.S. Army.

The IDS division recorded $262 million in operating income compared to $245 million in the same period last year, driven primarily by efficiencies and program mix, the company said.

Missile Systems

Missile Systems divisions sales for the quarter were up 8 percent to $2.051 billion from $1.901 billion in 2017, driven primarily by higher net sales on classified programs.

In addition to $707 million on classified contracts, Raytheon booked $933 million in sales for Standard Missile-3, $205 million for Tube-launched, Optically-tracked, Wireless-guided (TOW) missiles, $167 million for Tomahawk, $109 million for Miniature Air Launched Decoy (MALD), $99 million for Excalibur, and $78 million for Evolved Seasparrow Missiles (ESSM).

Other sales

Classified programs accounted for higher sales in the Intelligence, Information and Services segment, which booked $802 million on a number of classified contracts, boosting second quarter sales 8 percent to $1.687 billion. IIS also booked $298 million on domestic and foreign training programs in support of Warfighter FOCUS activities.

Space and Airborne Systems posted $1.605 billion in net sales, down slightly from $1.608 billion last year, primarily due to a change in program mix and other performance, Raytheon said. SAS booked $1.121 billion on a number of classified contracts.

Quarterly net sales for Raytheon’s cybersecurity company Forcepoint were $148 million, an increase of 7 percent from the previous year, although it posted a loss of $8 million due to an expected decrease in operating income driven by higher operating costs. Its bookings for the quarter were $148 million, 29 percent higher than the $115 million in the second quarter 2017.

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