Raytheon "staying ahead of the curve" on U.S. budget cuts -CFO
WASHINGTON, July 25 (Reuters) - Raytheon Co saw some delays in U.S. bookings as a result of $37 billion in additional budget cuts imposed on the Pentagon in March, but the company is "staying ahead of the curve" with continued cost-cutting measures and strong international sales, Chief Financial Officer David Wajsgras told Reuters.
Asked about the outlook for 2014, Wajsgras said Raytheon should be able to maintain strong profit margins despite the challenging U.S. budget environment through continued cost-cutting efforts and strong international sales, which account for about 30 percent of the company's business.
He said Raytheon still expected the additional budget cuts in fiscal 2013 imposed under a process known as "sequestration" to trim $500 million from bookings for the full year, and about $400 million from revenues in the second half of the year.
Wajsgras said a recent consolidation of the company's businesses into four divisions was ahead of schedule and he now anticipated savings well in excess of the $85 million that the changes were originally expected to generate.