Raytheon May Sell Construction Unit

Raytheon Co. said that losses at its construction unit hurt first-quarter profit and that it may sell or spin off the Cambridge, Mass.-based business. The aerospace and defense giant will list results from the recent quarter for the unit, which lost 15 cents to 20 cents a share, as discontinued operations. Excluding the unit’s loss, the company said it had profit of 23 cents to 27 cents, the range of forecasts from analysts surveyed by First Call/Thomson Financial. Raytheon, maker of the Patriot missile, has suffered from project delays, higher costs and lower missile sales. Raytheon Engineers & Constructors, which builds power plants, has been hurt by problems at an unidentified overseas project. Some analysts say the move helps Raytheon avoid reporting lower profit while getting rid of the troublesome business. But some were skeptical that Raytheon could find a buyer. “Unless they are willing to sell it at rock-bottom prices, I think ultimately they are going to have to get creative and do a joint venture or spin it off,” said William Fiala, an analyst at Edward Jones & Co., who has a “hold” rating on the stock. Class B shares of Lexington, Mass.-based Raytheon closed off 6 cents at $20.63 on the New York Stock Exchange.

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