Raytheon Posts 3Q Profit Rise On Missile Demand

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WASHINGTON (AP) — Raytheon Co. said Thursday profit rose in the third quarter on increased demand for the defense contractor's Patriot missile by foreign governments concerned about potential threats from other countries, and for its soldier training programs.

The company, whose products include missiles, sensors and radar systems, lifted its earnings guidance range for the rest of the year, but offered an outlook for 2010 weaker than Wall Street's forecast.

While the 2010 forecast was below analysts' estimates, it didn't seem to concern investors. Raytheon appears poised to be on track for a solid performance this year, and beyond, as international sales drive growth. International sales hit a record in the quarter and the company anticipates that in 2009, sales outside of the U.S. will rise as much as 22 percent above last year's level, the company said during a conference call with investors and analysts.

"Revenue growth is expected to be much higher than we had previously estimated, a very reassuring sign in a period of concern about declining defense spending," Morgan Keegan analyst Brian Ruttenbur said in a note to clients. He lowered his 2010 profit estimates for the company due to higher expected pension expense, but raised his 2011 estimates on anticipation of higher revenue growth.