Raytheon Reports Solid First Quarter 2014 Results

Raytheon Company (NYSE: RTN) announced first quarter 2014 EPS from continuing operations of $1.87 compared to $1.49 in the first quarter 2013. First quarter 2014 Adjusted EPS1 was $1.43 per diluted share compared to $1.56 per diluted share in the first quarter 2013.

The first quarter 2014 Adjusted EPS1 excluded the previously announced $0.25 favorable tax impact from cash repatriation in the first quarter 2014. In addition, the first quarter 2014 Adjusted EPS1 excluded a favorable FAS/CAS Adjustment of $0.18, compared with an unfavorable FAS/CAS Adjustment of $0.14 in the first quarter 2013. The first quarter 2013 Adjusted EPS1 also excluded $0.08 associated with the impact of the 2012 research and development (R&D) tax credit approved by Congress in January 2013.

- EPS from continuing operations of $1.87; Adjusted EPS(1) of $1.43
- Reported operating margin of 14.3 percent; Adjusted Operating Margin(1) of 12.7 percent
- Net sales of $5.5 billion
- Strong operating cash flow from continuing operations of $659 million
- As previously announced, increased annual dividend by 10 percent to $2.42 per share

"Raytheon delivered solid operating performance in the first quarter," said Thomas A. Kennedy, Raytheon's CEO. "Our longstanding focus on operational excellence, consistent program performance and a portfolio of affordable and innovative solutions provides a strong foundation for ongoing value creation for our global customers and shareholders."

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1 Adjusted EPS is diluted EPS from continuing operations attributable to Raytheon Company common stockholders, and Adjusted Operating Margin is total operating margin; in each case, excluding the impact of the FAS/CAS Adjustment, and from time to time, certain other items. First quarter 2014 Adjusted EPS excluded the $0.25 favorable tax impact of approximately $80 million resulting from cash repatriation in the first quarter 2014. First quarter 2013 Adjusted EPS excluded the $0.08 impact of the 2012 research and development (R&D) tax credit, approved by Congress in January 2013 that relates to 2012. Adjusted EPS and Adjusted Operating Margin are non-GAAP financial measures. See attachment F for a reconciliation of these measures and a discussion of why the Company is presenting this information.

- Full financials on the Raytheon website.

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