Raytheon reports "solid" performance

Raytheon Co., the Waltham defense contractor, said today that its second-quarter operating income rose 12 percent on strong sales performances in all its key business segments.

"All of our businesses performed well, and the company had a strong second quarter," Raytheon chairman and chief executive William H. Swanson (left) said in a statement. "We are increasing our financial outlook for the year as a result of our solid performance."

Second-quarter sales rose 11 percent to $5.9 billion, Raytheon said, while net income declined to $426 million from $1.34 billion.

The year-ago quarter included a one-time gain from Raytheon's sale of its aircraft unit; as a result, a better metric of performance for this quarter is income from continuing operations, which was $426 million, up from $355 million a year ago, Raytheon said.

One reason why Raytheon is increasing its financial outlook is that the company's "backlog remains very strong," David C. Wajsgras, Raytheon's senior vice president and chief financial officer, said in a brief telephone interview.

A front-page story in the Globe this morning noted that the Navy has canceled a $20-billion purchase of Zumwalt-class destroyers and added that the Navy's decision "threw into question the future of Raytheon Co.'s largest defense program."

Wajsgras said the Navy's decision would have little immediate impact on Raytheon's 2008 financial results.

He said further questions about the destroyer program would likely be addressed in a conference call with investors scheduled for later this morning.
(By Chris Reidy, Globe staff)