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Raytheon warns on 4Q
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January 18, 2000: 8:27 a.m. ET
Defense contractor to miss forecasts, restate 3 years of results
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NEW YORK (CNNfn) - Raytheon Co. warned investors Tuesday that its earnings would be less than half of analysts' estimates for the fourth quarter and that it will restate earnings for the past three years.
The company said its earnings for the quarter were between 20 and 25 cents a diluted share. Analysts surveyed by First Call had been looking for 59 cents a share. In the year-earlier period, the company earned $1.08 a diluted share.
The Lexington, Mass.-based company said the income shortfall was due to a variety of issues, including production and shipment delays on 19 aircraft, cost increases at Raytheon Aircraft Company, higher interest expenses due to a ratings downgrade in November, and further erosion of international sales for missiles such as the Patriot.
The restatement of results is due to a staff accounting bulletin issued by the Securities and Exchange Commission on Dec. 6. It said that to comply with that bulletin it will recognize revenue on all planes based on final delivery to the customer, and that the change should not be more than 6 cents a share each year, positive or negative. However, it would be larger in the fourth quarter of last year.
The company's stock is traded in both an "A" and "B" shares. Raytheon A (RTN.A) was down 15/16 to 24-5/16 in trading Friday, while Raytheon B (RTN.B) was down 13/16 to 25-3/8. 
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Raytheon Co.
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