Raytheon Optimistic About Defense Orders

Raytheon Co.’s chief executive said that war or peace, he expects about $1 billion in orders as a result of the Kosovo conflict and that he sees the beginning of a steady growth cycle for the defense industry. The $1 billion is strictly in U.S. orders, Chief Executive Dan Burnham said. He noted that the money is included in supplemental budgets “already passed or under discussion.” A spokesman for the Lexington, Mass.-based company said it expects to receive the orders over the next six to 12 months and to fill them over the next three years. “Last October, I and a few others were talking about defense as a growth industry . . . because there was growing evidence then of the growing political need to invest in defense,” Burnham said. Raytheon makes Tomahawk, Patriot and AMRAAM missiles, and supplies a variety of defense systems to a number of countries, including Saudi Arabia, Spain and Greece. Britain’s Ministry of Defense is considering awarding Raytheon a $1.2-billion contract for an advanced-radar system. Raytheon Class B shares closed at $70.13, up 50 cents, on the NYSE.