WALTHAM, Mass., Oct. 25 (UPI) -- U.S. company Raytheon announced Thursday that it had generated third-quarter 2007 earnings of $304 million.
The income amounted to "$0.69 per diluted share compared to $267 million or $0.59 per diluted share in the third quarter 2006," the company said.
"Third quarter 2007 income from continuing operations was higher primarily due to operational improvements, combined with lower net interest and pension expense, partially offset by an after-tax impairment charge of $69 million -- $84 million pretax -- or $0.16 per diluted share in connection with the disposition process of Flight Options. Third quarter 2007 income from continuing operations excluding Flight Options was $380 million or $0.86 per diluted share compared to $274 million or $0.61 per diluted share in the third quarter 2006," it said.
Raytheon also said that on Oct. 15 it "entered into a definitive agreement to sell Flight Options to H.I.G. Capital, a global private investment firm. This transaction is expected to close in the fourth quarter 2007."
"Our program execution, strong backlog and customer focus are driving the company's performance and delivering value to our shareholders," said William H. Swanson, Raytheon chairman and CEO.
"With the pending sale of Flight Options, going forward our attention will be focused on our core business, leading technologies and Mission Support to our global customers," he said.
Raytheon said its third-quarter 2007 net income "was $299 million or $0.68 per diluted share compared to $321 million or $0.71 per diluted share in the third quarter 2006. Net income for the third quarter 2007 included a $5 million after-tax loss in discontinued operations or $0.01 per diluted share versus a $54 million gain or $0.12 in the third quarter 2006. Third quarter 2006 discontinued operations results included Raytheon Aircraft Company, which was sold by the company in the second quarter 2007."
"Net sales for the third quarter 2007 were $5.4 billion, up 8 percent from $4.9 billion in the third quarter 2006 led primarily by Integrated Defense Systems, Missile Systems and Network Centric Systems," the company said.