Raytheon Aircraft Deliveries Up, Division for Sale
According to Raytheon’s second-quarter report, released this morning, Raytheon Aircraft posted net quarter sales of $745 million, up 8 percent from $687 million in the second quarter of last year, thanks to more deliveries of new aircraft. The division recorded a quarterly profit of $41 million versus $33 million in the same period last year. Raytheon Aircraft delivered 36 business jets and 33 King Airs in the second quarter, bringing first-half deliveries to 58 jets and 54 King Airs. By year-end, it plans to deliver a total of 156 business jets (including five super-midsize Hawker 4000s in the fourth quarter) and 142 King Airs; last year it shipped 141 jets and 114 King Airs. Sales intake during the quarter was less strong, with 28 jets and 38 King Airs sold, versus 28 jets and 42 Kings Airs in the same three-month period last year. Despite the division’s strong financial performance, Raytheon announced that it “intends to explore strategic alternatives for Raytheon Aircraft, which might include, among others, a potential sale of the business, an initial public offering or spin-off to shareholders or some combination thereof,” meaning that the aircraft manufacturer is again on the block. Raytheon said the sale of this division would not involve fractional provider Flight Options or Raytheon Airline Aviation Services. The company has retained Credit Suisse to assist in the sale of Raytheon Aircraft.