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Raytheon Announces Fourth Quarter, Full-Year 2019 Results, UTC Acquisition; Thomas Kennedy Quoted

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Raytheon has announced net sales for the fourth quarter 2019 of $7.8 billion, up 6.5 percent compared to $7.4 billion in the fourth quarter 2018, the company announced on Friday. The increase in the fourth quarter 2019 EPS from continuing operations was primarily driven by operational improvements.

“Raytheon had a very successful year in 2019, delivering record bookings, backlog, sales and operating cash flow,” said Thomas Kennedy, Raytheon chairman and CEO. “Our results reflect the continued hard work and dedication of the Raytheon team and position us well for the future.

The company made record bookings of $12.1 billion in the quarter and $36.3 billion for the year.  Raytheon announced a book-to-bill ratio of 1.54 in the quarter and 1.25 for the year. The backlog was $48.8 billion, up 15 percent year-over-year.

Raytheon generated fourth quarter net sales of $7.8 billion, up 6.5 percent, and full-year net sales of $29.2 billion, up 7.8 percent. The recorded fourth quarter EPS from continuing operations was announced at $3.16 and full-year EPS from continuing operations was $11.92.

The company reported strong operating cash flow from continuing operations of $2.8 billion in the quarter and a record $4.5 billion for the year. In addition, Raytheon reported on the acquisition of United Technologies Corp. The merger of equals has a targeted date to close early in the second quarter of 2020.

“Integration planning for the merger with United Technologies is progressing well, with the integration team developing detailed execution plans to capture revenue and cost synergies rapidly and ensure seamless operations post close. Our goal is to close the merger early in the second quarter of 2020.”

Greg Hayes, chairman and CEO of United Technologies Corp., announced in Oct. 2019 that UTC hopes to close its potential $120 billion merger with Raytheon by early April 2020 and has begun planning for the integration of the two companies.

“We’re already working a detailed list of items to generate the billion dollars of gross cost synergies that we’re targeting for the transaction,” Hayes said. “I also remain very excited about the technology synergies that will result from the combination.”

Hayes announced that Otis Elevator and Carrier subsidiaries were officially separated from UTC’s corporate structure, effective Jan. 1, and both businesses are on track to finalize their spinoffs by the second quarter. He added that the spinoffs are “substantially complete from an operations standpoint.”

UTC reported $5.5 billion in profits for full-year 2019, up 5 percent from the previous year. The company’s net sales rose 8 percent to $19.5 billion during the fourth quarter of 2019.

About Raytheon

Raytheon Company, with 2019 sales of $29 billion and 70,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 98 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I® products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts.

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