29-Oct-2010 3:50 PM

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

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.

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