Raytheon sees strong earnings, cash flow in 3-year outlook
WASHINGTON, Jan 24 (Reuters) - Raytheon Co Chief Financial Officer David Wajsgras said the company is "very confident" about its ability to generate strong earnings and cash flow over the next three years, despite its forecast for lower earnings in 2013.
Wajsgras, speaking in a telephone interview with Reuters, cited the company's recorded funded backlog at the end of 2012 and said international orders were approaching 40 percent of the overall total backlog. An additional big order from Kuwait, which had been expected at the end of 2012, is now likely to be signed in the first quarter, he said.
Wajsgras said the company's lower earnings forecast for 2013 is because some new developmental programs in the classified arena are just kicking in, generating lower margins initially. At the same time, some higher-margin business, including a large international missile contract, will be ramping down this year.
"If you stand back and look at the three-year outlook, we are very confident in our ability to post very strong earnings and cash flow over that time point," he told Reuters.