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Raytheon raises outlook, but shares hit hard – Suppliers Share Wrap

Analysis

Raytheon reported a net profit of USD728 million for, or USD1.94 a share, for 3Q2010. The result is up from USD490 million, or USD1.25 a share, a year earlier. The result included a one-time favourable tax settlement of USD170 million. Net sales were USD6.3 billion, compared with USD6.2 billion in 3Q2009.

Summary
  • Raytheon reports a net profit of USD728 million for 3Q2010, up from USD490 million a year earlier.
  • The result includes a one-time favourable tax settlement of USD170 million.
  • Net sales for Raytheon were USD6.3 billion in 3Q2010, compared to USD6.2 billion in 3Q2009.
  • Raytheon increases its full-year profit forecast to USD5.38 per share, up from the previous estimate of USD5.13-5.28 per share.
  • Shares in Raytheon trade down 3.5% as analysts express concerns over reduced defense spending in the US and pension issues.
  • Willis Lease gains 6.2% in trading, but its shares have lost nearly 20% of their value since the beginning of the year.

The aerospace and defence company increased the upper range of its full-year profit forecast from USD5.28 per share to USD5.38 per share. In Jul-2010 the company estimated a full-year profit of USD5.13-5.28 per share.

Shares in Raytheon traded down 3.5%, running against the market as analysts expressed concern over how the company will deal with reduced defence spending in the US as well as pension issues.

Another major mover was Willis Lease, which gained 6.2% in trading yesterday. The company's shares have lost nearly 20% of their value since the start of the year.

Selected Original Equipment Manufacturers daily share price movements (% change): 28-Oct-2010

Selected Aviation Suppliers & Leasing daily share price movements (% change): 28-Oct-2010

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