Defense contractor Raytheon ( RTN) posted a 14% jump in first-quarter profit on better sales across missiles, radars and defense electronics.

The company also raised its full-year outlook, a move bolstered by Defense Secretary Robert Gates' proposed $534 billion budget for military spending, a 4% increase from last year. Raytheon now expects earnings in the range of to $4.55 to $4.70 a share, up from $4.45 to $4.60 a share.

In response, shares were up 6% to $43.67 in morning trading.

During the first quarter earnings reached $460 million, or $1.11 a share, from $399 million, or 92 cents a share, during the same period last year. Analysts were expecting earnings of $1 a share.

Sales rose 10% to $5.9 billion from $5.4 billion.

Chief Financial Officer David Wajsgras said in a statement that he believes the company could benefit from the growing focus in areas like missile defense systems and intelligence work.
Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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