Raytheon Again Cuts Its Earnings Forecast

Raytheon Co., the No. 3 U.S. defense contractor, cut its earnings forecast for the third time since September as it struggles to digest more than $15 billion in acquisitions. Raytheon said production delays on 19 aircraft and higher costs will result in fourth-quarter profit of 20 cents to 25 cents a share, well below the 59-cent average estimate of analysts surveyed by First Call/Thomson Financial. Raytheon has made a string of acquisitions during the last four years in an effort to cope with declining U.S. defense spending. Raytheon said it expects results for 2000 to fall short of the forecasts it had told analysts to cut in October. Raytheon also blamed “further erosion in international opportunities” for its missile systems, such as the Patriot program, for the lower profit forecast. Class A shares in the Lexington, Mass.-based company fell $6.31 to close at $18 on the NYSE.