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 œrevenue synergies from the transaction during the company™s earnings call, including directed energy and the incorporation of the firm™s œexpeditionary 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 œcontract 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.
