A McAleese and Associates report says Raytheon (NYSE: RTN) recorded $9.5B in new orders during the second quarter of 2019 with a book-to-bill ratio of 1.3x.
Jim McAleese, founder and principal at McAleese & Associates and a 2019 Wash100 winner, wrote in the report the Waltham, Mass.-based defense contractor posted a record backlog of $43B, up 8 percent from the prior year period.
McAleese noted that some of those new orders are the Patriot missile defense system; the National Advanced Surface-to-Air Missile System; and AIM-9X Sidewinder short-range air-to-air missiles.
The proposed merger of Raytheon and United Technologies Corp. (NYSE: UTX) is expected to close in the first half of 2020 and Thomas Kennedy, chairman and CEO of Raytheon and a 2019 Wash100 winner, identified specific “revenue synergies†from the transaction during the company’s earnings call, including directed energy and the incorporation of the firm’s “expeditionary landing system†onto new military aircraft.
According to the report, Thomas discussed the U.S. Army’s Lower Tier Air and Missile Defense Sensor contract. The LTAMDS “contract structure is something called an ‘Other Transaction’ … and it does have a requirement for 30% content that can be provided by ‘non-traditional contractors’… We are working with non-traditional contractors…We are confident in that solution…Sometime in the September timeframe…the Army has said that they will make that final selection,†he noted.
Raytheon saw its net sales climb 8.1 percent to $7.2B during the second quarter and recorded an earnings per share from continuing operations of $2.92, up 5 percent. The Q2 operating cash flow from continuing operations was $823M.
The company reported an 8 percent increase in Q2 net sales for its missile systems and integrated defense systems segments and a 13 percent sales increase for its space and airborne systems business.
The intelligence, information and services business and Forcepoint posted a 5 percent rise in Q2 revenue.
