Raytheon Raises Cost Estimate on Projects

Raytheon Co., which sold its construction unit two years ago, said completing two Massachusetts power plants it guaranteed will cost as much as $1.26 billion, or four times initial estimates.

Washington Group stopped work on the plants and then filed for bankruptcy projection in May 2001, accusing Raytheon of hiding cost overruns. Raytheon has raised its cost estimate three times since it had to take back the projects from Washington Group. Shares of Lexington, Mass.-based Raytheon fell $3.50 to $37.25 on the NYSE.