Raytheon Company (NYSE: RTN) announced fourth quarter 2011 Adjusted EPS of $1.74 per diluted share compared to $1.55 per diluted share in the fourth quarter 2010(1).  The increase was driven by operational improvements and capital deployment actions.  Fourth quarter 2011 EPS from continuing operations was $1.58 compared to $1.37 in the fourth quarter 2010.  Fourth quarter 2011 included an unfavorable FAS/CAS Adjustment(1) of $0.16, compared with an unfavorable FAS/CAS Adjustment of $0.09 in the fourth quarter 2010. Fourth quarter 2010 EPS from continuing operations also included a $0.10 net charge associated with the impact of early debt retirement.

"In a year of economic uncertainty, the Raytheon team focused on what we do best - ensuring customer success through program performance and product innovation," said William H. Swanson, Raytheon's Chairman and CEO.  "Improved efficiencies and lower costs drove operating margin and earnings performance, while global demand for our affordable solutions resulted in strong orders."

Net sales for the fourth quarter 2011 were $6,441 million, compared to $6,885 million in the fourth quarter 2010, with 5 fewer workdays in the fourth quarter 2011.  The Company reported strong bookings for the fourth quarter 2011 of $7,147 million compared to $5,984 million in the fourth quarter 2010, resulting in a book-to-bill ratio of 1.11.

The Company generated strong operating cash flow in the quarter.  Operating cash flow from continuing operations for the fourth quarter 2011 was $1,319 million compared to $861 million for the fourth quarter 2010. Both fourth quarter 2011 and fourth quarter 2010 included $750 million in discretionary cash contributions to the Company's pension plans. The increase in operating cash flow from continuing operations in the fourth quarter 2011 was primarily due to the timing of collections.

In the fourth quarter 2011, the Company repurchased 7.0 million shares of common stock for $313 million as part of its previously announced share repurchase program.  For the full-year 2011, the Company repurchased 27.1 million shares of common stock for $1,250 million.  

Full-Year Financial Results

Full-year 2011 Adjusted EPS was $5.90 per diluted share compared to $5.51 for the full-year 2010(2), up 7 percent.  The increase was primarily driven by operational improvements and capital deployment actions. Full-year 2011 EPS from continuing operations was $5.28 compared to $4.79 for the full-year 2010.

Net sales in 2011 were $24.9 billion, compared to $25.2 billion in 2010.  The Company reported strong bookings in 2011 of $26.6 billion compared to $24.4 billion in 2010, resulting in a book-to-bill ratio of 1.07.

The Company generated strong operating cash flow for the year.  Operating cash flow from continuing operations was $2.2 billion in 2011, compared to $1.9 billion in 2010. Both 2011 and 2010 included $750 million in discretionary cash contributions to the Company's pension plans. The Company made $1.8 billion in total cash contributions to its pension plans in 2011 compared to $1.9 billion in 2010.

In the fourth quarter 2011, the Company issued $1.0 billion in long-term debt.  The Company ended the year with $605 million of net debt.  Net debt is defined as total debt less cash and cash equivalents.

Source: Raytheon