RTN Raytheon Co

By Doug Cameron 

Raytheon Co. has boosted output of precision weapons and has capacity to produce more as the U.S. and its allies tackle a shortage of munitions for campaigns in the Middle East.

The maker of Paveway laser guided bombs and Tomahawk missiles has joined other defense companies including Boeing Co. and Lockheed Martin Corp. in expanding production for the Pentagon, while countries including Iraq are seeking thousands of bombs and missiles.

"We were flexing through 2015 and we still have some [more] capacity, internally and in the supply base," Raytheon Chief Financial Officer Toby O'Brien said in an interview.

Raytheon is the most export-driven of the major U.S. companies, with overseas sales reaching a record 31% last year, while domestic revenue rose for the first time since 2009.

Mr. O'Brien said there has been no impact on demand from oil-dependant nations in the wake of falling energy prices, echoing comments this week from executives at other contractors.

His comments came as Raytheon reported forecast-beating fourth quarter profit, and full-year sales rose to $23.2 billion, reversing a string of sequential declines a year earlier than management originally expected.

The company reported net profit of $567 million for the quarter compared with $586 million a year earlier, with per-share earnings climbing a penny to $1.89 as sales rose 3% to $6.33 billion.

Raytheon forecast revenue to climb to $24 billion to $24.5 billion in 2016--compared with $23.2 billion last year--with per-share earnings in a range of $6.80 to $7.00.

Bookings rose $7.9 billion in the quarter to close the year at $25.2 billion, with 34% derived from overseas.

The company is also betting it can leverage the cybersecurity skills it honed for the U.S. military and intelligence agencies to sell to banks and retailers, investing almost $1.7 billion last year to establish a stand-alone business--recently rebranded as Forcepoint--in an area where its defense peers have struggled to make money.

Write to Doug Cameron at doug.cameron@wsj.com

(END) Dow Jones Newswires

January 28, 2016 10:07 ET (15:07 GMT)

Raytheon (NYSE:RTN)
Historical Stock Chart
From Mar 2024 to Apr 2024

Raytheon (NYSE:RTN)
Historical Stock Chart
From Apr 2023 to Apr 2024