Raytheon Company reported fourth quarter 2009 income from continuing operations of $517 million, up 21 percent compared to $428 million in the fourth quarter 2008. Earnings per share from continuing operations for the fourth quarter 2009 was $1.30, up 29 percent compared to $1.01 in the fourth quarter 2008. Fourth quarter 2008 income from continuing operations included a $45 million ($69 million pretax) unfavorable adjustment due to the impact of pension investment returns on existing contracts in 2008.
"Our 2009 results reflect the increasing global demand for our capabilities, as well as the company's strong operational performance," said William H. Swanson, Raytheon's chairman and CEO. "Looking ahead, we expect continued growth by providing our customers with innovative solutions that address their evolving needs."
Net sales in the fourth quarter 2009 were $6.7 billion, up 10 percent from $6.1 billion in the fourth quarter 2008.
Operating cash flow from continuing operations in the fourth quarter 2009 was $1,073 million compared to $444 million in the fourth quarter 2008. In the fourth quarter 2008, the company made $660 million in discretionary cash contributions to its pension plans. The company made $1,115 million in total cash contributions to its pension plans in full-year 2009 compared to $1,174 million in full-year 2008.
In the fourth quarter 2009, the company repurchased 6.0 million shares of common stock for $300 million, as part of its previously announced share repurchase program. For the full-year 2009 the company repurchased 25.8 million shares of common stock for $1.2 billion.
Full-Year Financial Results
Full-year 2009 income from continuing operations was $2.0 billion, up 16 percent compared to $1.7 billion for the full-year 2008. EPS from continuing operations for the full-year 2009 was $4.89, up 24 percent compared to $3.93 for the full-year 2008.
Net sales in 2009 were $24.9 billion, up 7 percent from $23.2 billion in 2008, with all of Raytheon's businesses contributing to the sales growth.
The company generated strong operating cash flow for the year. Operating cash flow from continuing operations was $2.7 billion in 2009 compared to $2.0 billion in 2008. The increase in operating cash flow in 2009 was primarily due to improved performance and lower net cash tax payments. The company paid $627 million in cash taxes in 2009 and received $419 million in tax refunds and credits, primarily related to the discretionary cash contributions that it made to its pension plans in December 2008. The company paid $545 million in cash taxes in 2008 and received $97 million in tax refunds and credits.
The company ended 2009 in a net cash position of $313 million ($2.6 billion in cash and cash equivalents less total debt of $2.3 billion).
Raytheon Company, with 2009 sales of $25 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 88 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 75,000 people worldwide.