Raytheon profit soars 41% on sales, cost cuts

Raytheon Co. said third-quarter profit rose 41%, helped by higher sales of military equipment and business jets and a reduction in pension costs.

The top-tier defense contractor, which makes Tomahawk missiles, a range of defense electronics and Hawker business jets, also raised its full-year earnings forecast but said it expected 2007 profit just below Wall Street’s average estimate.

The Waltham, Mass., company said profit increased to $321 million, or 71 cents a share, from $228 million, or 50 cents, a year earlier.

Results were helped by lower pension costs of $93 million in the quarter, down from $117 million a year earlier.

Revenue rose 7% to $5.69 billion.

Based on its better-than-expected performance, Raytheon raised its full-year earnings forecast 10 cents a share to $2.70 to $2.80 a share. Wall Street on average is expecting $2.72 a share.