Raytheon Company (RTN) has reported a 4.73 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $544 million, or $1.84 a share in the quarter, compared with $571 million, or $1.89 a share for the same period last year.
Revenue during the quarter went down marginally by 1.42 percent to $6,238 million from $6,328 million in the previous year period. Gross margin for the quarter expanded 136 basis points over the previous year period to 25.38 percent. Total expenses were 86.18 percent of quarterly revenues, down from 86.92 percent for the same period last year. This has led to an improvement of 73 basis points in operating margin to 13.82 percent.
Operating income for the quarter was $862 million, compared with $828 million in the previous year period.
"I'm pleased with the Company's operating performance in 2016. We delivered solid sales and earnings growth by executing our strategy and investing in advanced capabilities that align with our global customers’ evolving requirements," said Thomas A. Kennedy, Raytheon chairman and chief executive officer. "Strong domestic and international bookings throughout the year drove an increase in our backlog, which positions us well for growth in the future."
Raytheon Company expects revenue to be in the range of $24,800 million to $25,300 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $7.20 to $7.35.
Operating cash flow improves
Raytheon Company has generated cash of $2,852 million from operating activities during the year, up 20.90 percent or $493 million, when compared with the last year.
Cash flow from investing activities was $53 million from investing activities during the year as against cash outgo of $1,744 million in the last year. It has incurred net capital expenditure of $591 million on net basis during the year, up 48.49 percent or $193 million from year ago.
The company has spent $1,930 million cash to carry out financing activities during the year as against cash outgo of $1,509 million in the last year period.
Cash and cash equivalents stood at $3,303 million as on Dec. 31, 2016, up 41.88 percent or $975 million from $2,328 million on Dec. 31, 2015.
Working capital increases
Raytheon Company has recorded an increase in the working capital over the last year. It stood at $4,251 million as at Dec. 31, 2016, up 15.33 percent or $565 million from $3,686 million on Dec. 31, 2015. Current ratio was at 1.66 as on Dec. 31, 2016, up from 1.60 on Dec. 31, 2015.
Debt remains almost stable
Total debt of Raytheon Company remained almost stable for the quarter at $5,335 million, when compared with the last year period. Long-term debt of Raytheon Co remained almost stable for the quarter at $5,335 million, when compared with the last year period. Total debt was 17.75 percent of total assets as on Dec. 31, 2016, compared with 18.20 percent on Dec. 31, 2015. Debt to equity ratio was at 0.53 as on Dec. 31, 2016, up from 0.52 as on Dec. 31, 2015. Interest coverage ratio improved to 14.86 for the quarter from 14.28 for the same period last year.
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