Raytheon sees bottom of U.S. military spending in 2013-2014
WASHINGTON Jan 30 (Reuters) - Raytheon Co Chief Financial Officer Dave Wajsgras on Thursday said the low point of U.S. military spending was likely from mid-2013 to mid-2014, but international orders were expected to remain strong this year.
Wajsgras told Reuters Raytheon had expected to book a large order from Kuwait for its Patriot missile defense system in the fourth quarter, but the deal, valued at $500 million to $600 million, now looked likely to be finalized in February.
He said the company's adjusted operating margin in 2013 was 13.4 pct, the highest level seen since 2000, which reflected ongoing efforts to cut costs by consolidating facilities and other measures. He said margins would likely ease to 12.6-12.8 percent in 2014 as the company began work on several new programs, which typically carry lower margins to start.