* Q1 EPS from continuing ops $1.33 vs estimate $1.16
* 2012 profit outlook raised
* L-3, Lockheed also aided by share buybacks
WASHINGTON, April 26 (Reuters) – U.S. weapons maker Raytheon
Co issued results that beat first-quarter profit
estimates as it cut operating expenses, allowing it to raise its
full-year forecast and sending its shares up 2 percent.
The maker of missiles, sensors and other defense equipment
also increased its annual dividend by 16 percent to $2 per share
from $1.72.
“Bookings have been quite strong over the past three or four
quarters and, in combination with our efforts on cost
efficiencies and ongoing productivity, we’ve achieved results
beyond our initial expectations and in some areas improved over
last year,” Chief Financial Officer David Wajsgras told Reuters.
Faced with cutbacks in U.S. government spending, defense
contractors are buying back shares, shedding non-strategic units
and making acquisitions in niche growth areas such as cyber
security.
Defense industry leader Lockheed Martin Corp also
posted better-than-expected profits on Thursday.
But L-3 Communications Holdings Inc posted a lower
quarterly profit on Thursday as sales fell in its government
services segment.
“Given the economic situation that we find ourselves in and
the focus on productivity and cost efficiencies, we believe that
we are continuing to support the customer’s mission with high
quality, while also continuing to support their efforts on cost
efficiencies,” Wajsgras added.
Net income at Raytheon rose nearly 17 percent to $448
million in the first quarter from $384 million a year earlier.
That exceeded the $396.3 million average estimate of analysts
polled by Thomson Reuters I/B/E/S.
Per-share profit, after the repurchase of 7.9 million shares
in the quarter, rose more than 25 percent to $1.33 from $1.06 a
year earlier. Analysts expected profit of $1.16 a share,
according to Thomson Reuters I/B/E/S.
Raytheon raised its forecast for full year earnings per
share from continuing operations to $5.00-$5.15 from an earlier
view of $4.90-$5.05.
Sales dropped 2 percent in the quarter to $5.94 billion from
$6.05 billion. Operating expenses were down 4 percent.
Raytheon said it ended the first quarter with a backlog of
$34.3 billion, up from $33.7 billion at the end of the first
quarter of 2011.
The company’s integrated defense segment posted a slight
drop in sales, while its operating profit rose 12 percent to
$216 million, with operating margins increasing to 17.7 percent
from 15.8 percent.
Its missile systems segment boosted sales by two percent,
with operating income rising 16 percent to $180 million.
Operating margins increased to 13.3 percent from 11.7 percent.
Sales and earnings fell in the company’s network-centric
systems segment, mainly due to lower sales on U.S. Army
programs.
The company’s technical services segment saw flat sales and
a 12 percent drop in operating income, mainly due to a favorable
contract modification and legal settlement in the year-earlier
period.
Raytheon shares were up 2.2 percent at $54.06 in midday
trading. L-3 Communications gained 5 percent to $73.61 and
Lockheed was up 1 percent at $91.92.
