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Raytheon's 1996 sales totaled $12.3 billion, and the company ended 1996 with a backlog of more than $12.1 billion. Third quarter 1997 sales were $3.4 billion (See statistical summary).
Raytheon is both a leader in a consolidating defense industry and a strong commercial company. The company employs 80,700 people worldwide. Headquartered in Lexington, Mass., Raytheon has operations throughout the U.S. and offices in 27 countries serving customers in more than 80 countries around the world.
Celebrating its 75th anniversary this year, Raytheon is a technology pioneer. Among the company's achievements are the first application of microwave energy to cooking with the invention of the Radarange® microwave oven; the world's first electronic depth sounder, the Fathometer®; a rectifier tube that converted early home radios from battery to plug-in operation; mass production breakthrough on magnetron power tubes, the heart of radar systems; and the first guided missiles to intercept and destroy aircraft and ballistic missiles.
BUSINESS AREAS
1996 Sales -- $5.4 billion
Raytheon's principal business is to design, manufacture, and service advanced electronic devices, equipment, and systems for both government and commercial customers.
On January 6, 1997, Raytheon and Texas Instruments (TI) announced a definitive agreement for Raytheon to purchase the assets of TI's defense business--now called Raytheon TI Systems (RTIS)--for $2.95 billion in cash. The acquisition, which closed on July 11, 1997, joins complementary businesses with no substantial product overlap (see below).
On January 16, 1997, Raytheon entered a definitive agreement to merge with Hughes Electronics defense operations. The transaction is valued at $9.5 billion. The Hughes defense operations, with major facilities in California, Arizona, Indiana, Texas and Virginia, will be known as Raytheon Hughes Systems. Hughes is a leading supplier of advanced defense electronics systems and services, principally in missiles, naval systems, radars, electro-optics, communications, air traffic control and training simulators and services.
Once Raytheon (with RTIS) and Hughes are combined, Raytheon will have revenues (pro-forma 1996) of approximately $20 billion, more than $13 billion of which will be in defense electronics.
1996 Sales -- $3.1 billion
Raytheon Engineers & Constructors (RE&C) is one of the largest engineering, construction, and operations and maintenance organizations in the world, with more than 16,000 employees. It offers a full range of program management capabilities, including project planning, financing, process development, environmental assessment, engineering, procurement, construction, equipment fabrication, start-up, operations and maintenance services.
RE&C's diverse markets include: fossil and nuclear power; petroleum and gas; polymers and chemicals; pharmaceuticals and biotechnology; metals, mining, and light industry; food and consumer products; pulp and paper; environmental services, including chemical munitions destruction; infrastructure and transportation; test range, base and facilities management and maintenance; and air traffic control support services.
1996 Sales -- $2.3 billion
Raytheon Aircraft Company is the world's leading business and special mission aircraft manufacturer, providing a wide variety of aviation needs for businesses, governments and individuals. It is headquartered in Wichita, Kan. The company's products range from high performance piston aircraft to super mid-sized jets. In addition to aircraft design and manufacture, the company's business activities include aircraft service, logistics and support.
1996 Sales -- $1.5 billion
Raytheon Commercial Laundry LLC markets some of the finest names in Commercial Laundry, including Speed Queen, Huebsch and UniMac. Raytheon is the largest manufacturer of commercial laundry equipment in the United States.
In February 1997, Raytheon announced that it was exploring strategic alternatives for the Appliance Group. Based on this strategic evaluation, Raytheon signed an agreement in July 1997 to sell the home appliance, heating and air conditioning and commercial cooking segments of the Raytheon Appliance Group to Goodman Manufacturing Company of Houston, Texas. The transaction was completed in mid-September.
Raytheon retains its commercial laundry and electronic controls businesses. The company is continuing its strategic assessment of these two businesses.