Raytheon earnings up 20 percent on boost in defense spending

[Rose Siding]

BOSTON -- Raytheon Co. on Thursday said fourth quarter earnings rose 20 percent on a boost in spending for its military electronics and missile systems, a result that beat Wall Street's expectations.

The Waltham-based defense contractor said net income for the October-December period rose to $245 million, or 54 cents per share, compared with a profit of $205 million, or 49 cents per share, in the year-ago period. Net sales last quarter were $5.7 billion, up 12 percent from $5.1 billion in the same period a year earlier.

Pension expenses, which have cut into the company's earnings in recent quarters, again reduced earnings in the most recent quarter. Raytheon also reported a $55 million charge in the quarter from early redemption of debt. That expense was offset in part by a one-time $42 million gain from a recent change in tax law which gives U.S.-based, international companies a one-year window to reduce their tax rate on overseas profits brought back to the United States and reinvested here.
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Raytheon, which employs 80,000 people worldwide, said it added $4.2 billion in government and defense orders in the fourth quarter and full-year bookings of $21.9 billion.

http://www.boston.com/news/local/massachusetts/articles/2005/02/03/raytheon_earnings_up_20_percent_on_boost_in_defense_spending/