Raytheon Co. reported third-quarter 2006 income from continuing operations of $323 million or $0.72 per diluted share compared to $231 million or $0.51 per diluted share in the third quarter 2005.Third-quarter 2006 net income was $321 million or $0.71 per diluted share compared to $228 million or $0.50 per diluted share in the third quarter 2005. Third-quarter 2006 net income was higher primarily due to improved operating results at Integrated Defense Systems (IDS) and Raytheon Aircraft Co. (RAC), combined with a reduction in pension expense.
"Raytheon had another very strong quarter," comments William H. Swanson, Raytheon's chairman and CEO. "Our operating results demonstrate the company's continued focus on execution, and, as a result, the company is able to increase its full-year EPS, bookings, cash flow, and ROIC guidance."
Net sales for the third quarter 2006 were $5.7 billion, up 7 percent from $5.3 billion in the third quarter 2005. Government and Defense sales for the quarter (after the elimination of intercompany sales) increased 5 percent to $4.7 billion from $4.5 billion in the third quarter 2005. RAC sales for the quarter increased 18 percent to $758 million from $642 million in the third quarter 2005.
Operating cash flow from continuing operations for the third quarter 2006 was $750 million versus $798 million for the third quarter 2005. Yearto-date operating cash flow from continuing operations was $1194 million versus $1344 million from the comparable period in 2005. The decrease in both the third quarter and year-to-date 2006 versus the comparable periods in 2005 is primarily due to higher cash tax payments in 2006.
During the third quarter 2006, Raytheon repurchased 5.5 million shares of common stock for $250 million as part of the company's previously announced share-repurchase programs. Raytheon has repurchased 7.9 million shares of common stock year-to-date for $352 million.
Net debt was $2.8 billion at the end of the third quarter 2006 compared with $3.3 billion at year-end 2005 and $4.2 billion at the end of the third quarter 2005. Net debt is defined as total debt less cash and cash equivalents.
For additional information, see the News section of Raytheon's website at www.raytheon.com.