were slipping in late-afternoon trading Thursday, even though the company said it swung to a second-quarter profit.
The defense contractor said net income was $100 million, or 24 cents a share, in the quarter ended June 29, compared with a year-earlier loss of $136 million, or 33 cents a share, including charges. Excluding charges, the company said it would have earned 45 cents a share. Analysts were expecting 40 cents a share.
Income from continuing operations was $186 million, or 45 cents a share, down from last year's $223 million, or 54 cents a share. Shares of the Lexington, Mass.-based company were down about 3.3% shortly before the bell at $32.46.
Total sales were $4.4 billion, up from last year's $4.1 billion. Government and defense sales for the quarter, not including intercompany sales, increased 7% to $3.8 billion with a backlog of $22.4 billion, up from $19.8 billion in the 2002 period, the company said. Aircraft backlog at the end of the second quarter was $2.2 billion, compared with $4.7 billion last year due in part to a canceled order.
Raytheon said it now expects sales to increase 9% to 10%, from its original forecast of 6% to 7% growth. Analysts expect $17.9 billion; revenue was $16.7 billion last year. Government and defense sales are expected to increase 8.5% to 9%, compared with earlier guidance of 6% to 7%.
Additionally, the company reiterated its full-year EPS from continuing operations guidance of $1.70 to $1.80 a share. Analysts expect $1.74 a share.
Raytheon's results came on the same day that
announced a 29% drop in second-quarter earnings. Yet Lockheed also boosted its full-year estimates on expected strong sales. Shares of Lockheed were down 2.8% at $51.87 in late trading.