Raytheon Plans More Restructuring

Raytheon Co. said it is planning additional restructuring that will trigger a charge of up to $450 million and push its third-quarter and full-year earnings below estimates. The nation’s No. 3 aerospace and defense company said it’s taking the charge to close plants and shed assets in its electronics and engineering units, citing delayed orders and higher interest expense. The Lexington, Mass.-based company said it won’t meet estimates of at least $4 a share in 2000, adding that it can be more specific in two weeks, when it expects to complete a review of its programs. Analysts said the charge would probably cut between 60 cents and 65 cents from Raytheon’s earnings per share in the third quarter. Raytheon was expected on average to earn 95 cents in the quarter and $3.69 in 1999, according to First Call Corp. Raytheon executives said the plans to cut administrative staff and other costs will help buttress profit in the face of delays in some contract awards. On the New York Stock Exchange, Raytheon’s Class B shares dropped $7.31, or 12%, to close at $53.63, the biggest one-day percentage decline since late 1980.