Raytheon Company (NYSE: RTN) is a major American defense contractor and industrial corporation with core manufacturing concentrations in weapons and military and commercial electronics. It was previously involved in corporate and special-mission aircraft until early 2007. Raytheon is the world's largest producer of guided missiles.[2]
Established in 1922, the company reincorporated in 1928 and adopted its present name in 1959. The company has around 72,000 employees worldwide and annual revenues of approximately US$25 billion. More than 90% of Raytheon's revenues were obtained from military contracts and, as of 2007, it was the fifth-largest military contractor in the world,[3] and is the fourth largest defense contractor in the United States by revenue.
Raytheon Headquarters was moved from Lexington, Massachusetts to Waltham, Massachusetts on October 27, 2003.[4] The company was previously headquartered in Cambridge, Massachusetts from 1922–1928, Newton, Massachusetts from 1928–1941, Waltham from 1941–1961, Lexington from 1961–2003, and back to Waltham from 2003 onwards.

Raytheon Company is the third largest defense contractor in the United States, trailing only the Boeing Company and Lockheed Martin Corporation. Among the company's key defense products are missile defense systems, including the Patriot and Hawk ground-based missile systems; offensive missiles, including the Tomahawk, TOW, and Stinger; and radar, infrared, and other electronic systems for surveillance, reconnaissance, targeting, navigation, and other purposes. Raytheon has pioneered in the conversion of defense technologies into commercial products handled by Raytheon Commercial Electronics, such as marine electronic equipment, broadband wireless communications products, and infrared night vision systems for automobiles. Raytheon Aircraft Company is the number one maker of business and special mission aircraft in the world; this subsidiary, however, had been placed up for sale in 2000. The sale of the company's aircraft unit would complete a divestiture program launched in the late 1990s that transformed Raytheon from an industrial conglomerate to a company focused solely on defense and commercial electronics.

Raytheon Company, together with its subsidiaries, is a technology company and specializes in defense, homeland security and other government markets. The Company provides electronics, mission systems integration and other capabilities in the areas of sensing, effects and command, control, communications and intelligence systems (C3I), as well as a range of mission support services. It serves both domestic and international customers, principally as a prime contractor on a portfolio of defense and related programs for government customers. The Company operates in six business segments: Integrated Defense Systems (IDS), Intelligence and Information Systems (IIS), Missile Systems (MS), Network Centric Systems (NCS), Space and Airborne Systems (SAS), and Technical Services (TS). During the year ended December 31, 2010, the Company acquired three companies: Compucat Research Pty, Trusted Computer Solutions Inc. and Technology Associates Inc (AST).
Integrated Defense Systems
The Company’s IDS segment provides integrated solutions to an international and domestic customer base. IDS’s principal product lines include Patriot Programs (PP), National and Theater Security Programs (NTSP), and Seapower Capability Systems (SCS). PP designs, develops and produces the Patriot Air and Missile Defense System for the United States Army, which serves as the foundation of the United States Army’s integrated air and missile defense. PP also provides the Patriot System to international customers, including Germany, Greece, Spain and The Netherlands in Europe; Israel, Kuwait, Saudi Arabia and the United Arab Emirates (UAE) in the Middle East; and Japan, South Korea and Taiwan in the Far East.
NTSP provides integrated air and missile defense systems for the United States Army, Navy, Air Force, Missile Defense Agency (MDA), Inter-agencies and international partners, which enables warfighters to sense, detect and engage threats through air and ground-based sensors and command and control systems, as well as joint system solutions and intelligence. NTSP produces systems and solutions, such as the Joint Land Attack Cruise Missile Defense Elevated Netted Sensor (JLENS), a theater-based, advanced sensor system, that provides long-endurance, over-the-horizon detection and tracking capabilities; Early Warning Radars, including the X-band Family-of-Radars, such as the Transportable Radar Surveillance (TPY-2) radar, which enable threat detection, precision tracking, discrimination and classification of ballistic missile threats.
SCS is a provider and integrator of submarine and surface ship combat management, anti-submarine, mine warfare and integrated ship systems, as well as sensors and torpedoes for United States and international navies. SCS in the United States Navy’s Open Architecture initiatives for surface combatants, serving as the prime contractor of mission systems for the Navy’s DDG 1000, Zumwalt class combat system and providing Ship Self Defense System (SSDS), an open, distributed combat management system for the United States Navy carriers and amphibious ships. For the DDG 1000, SCS designs and produces mission systems equipment, which includes the Total Ship Computing Environment (TSCE), radar, sonar, associated electronics systems and the software and hardware for these systems.
Intelligence and Information Systems
The Company’s IIS provides surveillance and reconnaissance (ISR), advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. IIS’s principal product lines include Defense and Civil Mission Solutions (DCMS), Ground Enterprise Solutions (GES), Mission Operations Solutions (MOS), Operational Technologies and Solutions (OTS), Information Security Solutions (ISS) and Advanced Programs (AP). DCMS provides multi-INT ground systems, unmanned systems technology, environmental information management systems, and satellite command and control. DCMS also provides information processing, information integration and visualization systems for intelligence, satellite and space-based programs for commercial and DoD customers. DCMS also provides ground stations for the Joint Polar Satellite System (JPSS) weather observation system, the Global Positioning System (GPS-OCX) and the National Aeronautics and Space Administration (NASA). GES supports classified programs in support of the United States Intelligence Community. MOS provides integrated mission support and systems engineering for civil, intelligence and defense agencies, as well as international governments. OTS provides management and dissemination of massive volumes of intelligence data, as well as intelligence operations support capabilities for Human Intelligence (HUMINT), Open Source Intelligence (OSINT), wireless and close access collection for intelligence, law enforcement and other government agencies. ISS provides information security solutions and services to government.
Missile Systems
The Company’s MS is a developer and producer of missile systems for the armed forces of the United States and other allied nations. MS develops and supports a range of weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles and directed energy effectors. MS principal product lines include Air Warfare Systems (AWS), Air & Missile Defense Systems (AMDS), Naval Weapon Systems (NWS), Land Combat and Other MS. AWS’s products include the AMRAAM; the Tomahawk cruise missile; the SDB II, a 250 pounds (lb); the Joint Standoff Weapon (JSOW); the Paveway family of laser- and GPS-guided smart bombs; the AIM-9X Sidewinder short-range air-to-air missile; the Miniature Air-Launched Decoy (MALD); the Anti-Radiation Missile (HARM) and the HARM Targeting System, and the Maverick precision strike missile.
AMDS designs, develops, produces and supports air defense and ballistic missile defense interceptor systems. AMDS develops, manufactures and supports the Standard Missile family of weapons with capabilities ranging from anti-air warfare to ballistic missile defense. NWS produces the Phalanx Close-In Weapon System (afloat and ashore), RAM, SeaRAM and the Evolved Sea Sparrow/Sparrow family of missiles for ship self-defense against air and surface threats. Land Combat provides the Stinger weapon system for air defense; the Tube-launched, Optically-tracked, Wireless-guided (TOW) weapon system; the Javelin, and Excalibur.
Network Centric Systems
The Company’s NCS is a provider of net-centric mission solutions for federal, state and local government and civil customers. NCS leverages its capabilities in networking, sensors, command and control, and communications to develop and produce solutions for customers in markets, such as the United States Army modernization, international and domestic homeland security, civil communications and transportation solutions. NCS customers include the DoD and other United States Government customers, as well as numerous international customers. NCS principal product lines include Integrated Communications Systems (ICS), Command and Control Systems (C2S), Combat Systems (CS), Operations and Precision Components (OPC), Thales-Raytheon Systems and LLC (TRS LLC).
ICS offers wireless, high-bandwidth and transformational communication solutions for every DoD agency, and for civil and international customers. These solutions enable connectivity for Net-centric Operations (NCO) and the Global Information Grid (GIG), and provide mission assurance to customers with satellite, point-to-point and networked communications services. C2S develops, delivers and supports domestic and international military and civil customers, including the Federal Aviation Administration (FAA), Department of Transportation and DoD, with integrated networked command and control (C2) systems encompassing ground, air, space and security systems. C2S products include the United States Army’s Advanced Field Artillery Tactical Data System (AFATDS) and Joint Automated Deep Operations Coordination System (JADOCS).
CS provides integrated ground-based surveillance. CS develops advanced ground sensor capabilities for the United States Army’s Brigade Combat Team (BCT) Modernization program, such as the Mast Mounted Sensor (MMS) and the Multi-Function Radio Frequency System (MFRFS). CS also developed the Active Protection System (APS), which destroys rocket-propelled grenades or anti-tank missiles targeting combat vehicles. In addition, CS provides the Long Range Advanced Scout Surveillance System (LRAS3), a long-range multi-sensor system provides the ability to detect, identify and geo-locate distant targets. Other CS products include the Integrated Target Acquisition System (ITAS) for the Tube launched Optically tracked Wire guided (TOW) missile, the HTI 2nd Generation FLIR (Horizontal Technology Integration Forward Looking Infrared) systems, and Thermal Weapon Sights (TWS). OPC provides a range of imaging capabilities, including next-generation X-ray, visible, infrared, and millimeter wave focal plane arrays for thermal imaging, earth remote sensing and astronomy applications. Precision optical and electronic solutions, electronic hardware and software products that improve the interoperability of communications systems are provided through its Raytheon Vision Systems and ELCAN products.
Space and Airborne Systems
The Company’s SAS designs and develops integrated systems and solutions for advanced missions, including traditional and non-traditional intelligence, surveillance and reconnaissance (ISR), precision engagement, unmanned aerial operations and space. Leveraging advanced concepts, technologies and mission systems knowledge. SAS provides electro-optical/infrared sensors, airborne radars for surveillance and fire control applications, lasers, precision guidance systems, processors, electronic warfare systems and space-qualified systems for civil and military applications. ISRS designs and manufactures sensor, surveillance and targeting solutions that enable actionable information for strike, persistent surveillance and special mission applications. ISRS provides maritime and overland surveillance radars, terrain following/terrain avoidance radars and electro-optical/infrared sensors.
TAS designs and manufactures integrated sensor solutions, delivering trusted, actionable information and mission assurance. TAS provides sensors and integrated sensor systems with advanced fire control radars, electronic warfare and processor technologies to customers, including the United States Navy, Marine Corps, and Air Force and international governments. TAS produces radars using Active Electronically Scanned Array (AESA) antennas for the United States Air Force’s F-15 and B-2 aircraft, the United States Navy and Royal Australian Air Forces’ F/A-18, and the United States Navy’s EA-18G. TAS also provides electronic warfare systems for large body and tactical aircraft, helicopters and surface ships.
SS designs and manufactures space and space-qualified sensor payloads for national programs and develops solutions for emerging intelligence, defense and civil space applications. SS provides electro-optical, infrared, radio frequency and laser space-based sensors to customers, including branches of the DoD, MDA, NASA, classified customers and international governments. Other SAS product lines include Advanced Concepts and Technologies (ACT) and Integrated Technology Programs (ITP).
Technical Services
The Company’s TS provides technical, scientific and professional services to defense, federal, international and commercial customers. It specializes in training, logistics, engineering services and solutions, product support and operational support services. TS provide solutions for mission support, homeland security, space, civil aviation, counterproliferation and counterterrorism markets. TS principal product lines include Warfighter Support Services (WSS), Mission Support Operations (MSO), Customized Engineering & Depot Support (CEDS), Raytheon Professional Services (RPS) and Raytheon Polar Services. WSS provides training solutions, logistics and engineering support. Within WSS, the TS-led Warrior Training Alliance (WTA) operates activities in support of the United States Army’s Warfighter FOCUS contract, conducting integrated operational training with the United States Army, as well as United States Air Force and Marine Corps among other customers.
CEDS provides a spectrum of engineering and limited-production services, including Capability Maturity Model Integration for Development (CMMI-DEV) Maturity Level three capabilities for all engineering functions. CEDS provides upgrades and integration services to a number of air platforms, including the A-10, the HH-60, the B-52 and the F-16, and ground-based platforms, including radars and tanks. RPS designs, implements and manages training solutions that align an organization’s employees, customers and partners. Using systems engineering practices, RPS applies commercial solutions, processes, tools and training experts to make its training programs available anytime, anywhere.

Raytheon's appetite was not yet sated, and in fact grew in 1997, when the company acquired the defense business of Texas Instruments Inc. for $2.9 billion in July and the defense business of Hughes Electronics Corporation, a subsidiary of General Motors Corporation, for $9.5 billion in December. The Texas Instruments deal brought to Raytheon a number of complementary operations, including laser-guided weapons systems, missiles, airborne radar, night vision systems, and electronic warfare systems. The Hughes defense unit was a leading supplier of advanced defense electronics systems and services. These latest acquisitions propelled Raytheon into the top three among defense contractors and into the top position in defense electronics. They also led to a marked increase in revenues, from $12.33 billion in 1996 to $19.53 billion in 1998. Following the completion of the Hughes transaction, Raytheon consolidated its defense businesses--Raytheon Electronic Systems, Raytheon E-Systems, and the Texas Instruments and Hughes units--into a new operation called Raytheon Systems Company. In connection with this restructuring and a smaller restructuring of Raytheon Engineers & Constructors, Raytheon took a $495 million restructuring charge in 1997 for a plan that by 1999 eliminated more than 14,000 jobs from the workforce and closed about 28 facilities in the United States. In December 1997, the company also created a new subsidiary called Raytheon Systems Limited, which was based in the United Kingdom and was formed to develop products for export from that country.
By this time it was clearly evident that Raytheon had made a marked shift in strategy, placing a greater emphasis on its defense businesses, alongside the commercial electronics applications that developed out of the defense operations. The divestment of additional noncore operations was further evidence of this trend, with the divestments also helping to hold down the company's mounting debt load, which exceeded $10 billion by the end of 1997 thanks to the defense acquisitions. In 1997 Raytheon sold its home appliance, heating, air conditioning, and commercial cooking operations to Goodman Holding Co. for $522 million. That same year, the company sold its Switchcraft and Semiconductor divisions in separate transactions totaling $183 million. Divestments continued in 1998, including the sale of the firm's commercial laundry business for $334 million. Operations now consisted of the defense units, Raytheon Commercial Electronics, Raytheon Aircraft Company, and Raytheon Engineers & Constructors. In December 1998 Daniel P. Burnham, a vice-chairman of AlliedSignal, Inc., took the helm at Raytheon as president and CEO. Picard remained chairman until August 1999, when Burnham took on that title as well.
Late in 1999 Raytheon revealed that it had uncovered pervasive management and financial problems in its defense electronics operations that forced it to cut its earnings projections for the fourth quarter and all of 2000. The company was over budget or behind schedule on more than a dozen Pentagon contracts, and other projects, both in the United States and overseas, were being delayed at the contract stage itself, including several billion-dollar deals involving Patriot missiles. With earnings down, Raytheon would be unable to pay down its $9.5 billion debt as quickly as it hoped. For the year, net income stood at $404 million, less than half the $844 million figure of the previous year. Meantime, late in 1999 the company launched a further restructuring, with additional job cuts, the closure or amalgamation of ten plants, and a charge of $668 million. To flatten the organizational structure, Raytheon Systems Company was reorganized into several smaller units: Electronic Systems; Command, Control, Communication and Information Systems; Raytheon Technical Services Company; and Aircraft Integration Systems. On the positive side for 1999, Raytheon contracted with the United Kingdom to develop a $1.3 billion high-tech radar surveillance system called Airborne Stand-Off Radar. That year also saw the sale of the Cedarapids subsidiary for $170 million.
As it worked to fix the problems in its defense operations, Raytheon was awarded a couple more large contracts in August 2000. The U.S. Army awarded a joint venture partnership of Raytheon and Lockheed Martin a $1.24 billion production contract on the Javelin Antitank Weapon System, which the partners first began producing in 1997. In addition, Lockheed Martin selected Raytheon for the design, development, and manufacture of three radar systems for the Theater High Altitude Area Defense System, a $4 billion missile defense system contracted for by the U.S. Army. Raytheon's portion of the project amounted to $1.3 billion. Meantime, Raytheon's ongoing series of divestitures were nearing their conclusion. In July 2000 Raytheon Engineers & Constructors was sold to Morrison Knudsen Corporation for more than $800 million. Later in the year it was reported that Raytheon Aircraft Company was being shopped around. The sale of the aircraft unit essentially would focus Raytheon exclusively on defense and commercial electronics. Once again, these further divestments were in part aimed at slashing the burdensome debt load, which had crept back up over the $10 billion mark by late 2000. Raytheon would need to rein in this debt load and clear up its other financial problems if it wished to return to or surpass the steadily, if unspectacularly, profitable years that preceded the major 1997 acquisitions.
Principal Subsidiaries: Raytheon Aircraft Company; Raytheon Systems Limited (U.K.).
Principal Operating Units: Electronic Systems; Command, Control, Communication and Information Systems; Raytheon Technical Services Company; Aircraft Integration Systems; Raytheon Commercial Electronics.
Principal Competitors: BAE Systems; The Boeing Company; Bombardier Inc.; Emerson Electric Co.; European Aeronautic Defence and Space Company EADS N.V.; General Electric Company; Gulfstream Aerospace Corporation; Harris Corporation; Litton Industries, Inc.; Lockheed Martin Corporation; Matra-BAE Dynamics; Northrop Grumman Corporation; Textron Inc.; United Technologies Corporation.


OVERALL
Beta: 0.67
Market Cap (Mil.): $17,524.06
Shares Outstanding (Mil.): 356.18
Annual Dividend: 1.72
Yield (%): 3.50
FINANCIALS
RTN Industry Sector
P/E (TTM): 10.50 24.13 18.89
EPS (TTM): -5.55 -- --
ROI: 9.57 4.99 4.10
ROE: 17.32 17.05 7.13


Statistics:
Public Company
Incorporated: 1922 as American Appliance Company
Employees: 105,300
Sales: $19.84 billion (1999)
Stock Exchanges: New York Chicago Pacific
Ticker Symbol: RTNA; RTNB
NAIC: 336414 Guided Missile and Space Vehicle Manufacturing; 334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instruments Manufacturing; 334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing; 334290 Other Communications Equipment Manufacturing; 334418 Printed Circuit Assembly (Electronic Assembly) Manufacturing; 336411 Aircraft Manufacturing

Key Dates:

1922: American Appliance Company is founded.
1925: Company changes its name to Raytheon Manufacturing Company and begins making tubes for radios.
1940: Raytheon is chosen to develop magnetrons, a tube used in microwave radar systems, marking the company's entrance into defense technology.
1941: U.S. Navy contracts with Raytheon on the delivery of 100 ship radar systems.
1950: Raytheon's Lark missile comes to the fore when it successfully intercepts and destroys a test drone.
1965: Amana Refrigeration is acquired.
1967: Company introduces the first countertop microwave under the Amana name.
1976: Production of the Patriot missile defense system begins.
1980: Company acquires Beech Aircraft.
1993: Company acquires the corporate jet unit of British Aerospace.
1995: E-Systems Inc. is acquired.
1997: Raytheon acquires the defense businesses of Texas Instruments Inc. and Hughes Electronics Corporation; its home appliances unit is divested.
2000: Raytheon Engineers & Constructors is sold to Morrison Knudsen Corporation.

Address:
141 Spring Street
Lexington, Massachusetts 02421
U.S.A.
 
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