By Doug Cameron and Tess Stynes
Raytheon Co. on Wednesday named Thomas Kennedy to succeed
William Swanson as chief executive in March, continuing the
changing of the guard among the world's largest defense
contractors.
Mr. Swanson has been CEO since 2003 and is credited with growing
Raytheon into the fourth-largest defense company by sales through
focusing on expanding international business and winning market
share in fast-growing segments such as missile systems.
Raytheon signaled its succession planning last April when Mr.
Kennedy was promoted to chief operating officer. Mr. Swanson, who
turns 65 in February, will remain chairman.
The move will see five of the world's 10 largest defense
companies having changed CEOs over the past 15 months, with Boeing
Co. expected to join the list in the next year with the planned
retirement of Jim McNerney. Lockheed Martin Corp., General Dynamics
Corp. and Italy's Finmeccanica SpA all installed new CEOs last
year, while BAE Systems PLC has hired a new chief for its
semiautonomous U.S. unit.
The management changes come as the industry adjusts to the
steepest drop in Pentagon funding since the Korean War, while
parallel budget cuts by European countries have focused attention
on defense sales to the Middle East and Asia.
Raytheon generated almost 30% of revenue from outside the U.S.
last year, the highest portion among domestic peers, helped by
sales of its trademark Patriot missile-defense system.
Mr. Kennedy, 58, has been with Raytheon for more than 30 years
and formerly ran its integrated defense unit, which includes
missile systems.
Mr. Swanson, who has been with Raytheon for more than 40 years,
informed the board last year that he planned to retire after his
65th birthday next month.
Write to Doug Cameron at doug.cameron@wsj.com and Tess Stynes at
tess.stynes@wsj.com
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