Raytheon Stock Plummets on Forecast

Raytheon Co. stock plunged 14% as the No. 3 Pentagon contractor warned that its 2001 profits might miss Wall Street earnings estimates by as much as 9%. Chairman Daniel Burnham told analysts at a Florida conference that Raytheon’s aircraft unit continues to “chew” through cash as it struggles to launch a new business jet. He gave his forecast before the market opened, offering the company’s first guidance for 2001. Shares of the Lexington, Mass.-based company lost $4.63 to close at $27.75 on the New York Stock Exchange. Burnham said earnings would range from $1.55 to $1.70 a share. Wall Street analysts were looking, on average, for the maker of the Patriot missile, radar and electronic warfare systems to earn a $1.71 a share. Burnham said the aircraft unit is working to gain certification for its new business jet from U.S. aviation authorities by April. The Premier I jet, which has about 200 orders, is more than a year behind schedule.