uploads///RTN revenue by segment

What Should Investors Know About Raytheon?

By

Mar. 16 2015, Updated 7:06 p.m. ET

Introduction

Raytheon (RTN) was formed in 1922 by Vannevar Bush, Charles G. Smith, and Laurence Marshall. The company has a long history of innovation over the past 92 years. Currently, it’s headed by Thomas A. Kennedy.

Raytheon is a leading technology company. It provides products and services globally in the defense, civil, and security markets. The company provides mission systems integration, cybersecurity, mission support services, electronics, and services in the areas of effects, command and sensing, communications, and intelligence systems.

Article continues below advertisement

Capabilities

Some of the company’s key capabilities are sensing. This includes RF (radio frequency) sensing radars—EW (electronic warfare), EO (electro-optical)/IR (infrared) sensing, acoustic sensing, C3I (Command, Control, Communications and Intelligence), kinetic and non-kinetic energy, mission support, and cybersecurity.

Business segments

The company primarily operates in four business segments:

• Integrated Defense Systems
• Intelligence, Information and Services
• Missile Systems
• Space and Airborne Systems

All of its segments contribute equally towards its revenue—as shown in the above graph. The company isn’t highly dependent on the success of any one of the segments.

Article continues below advertisement

Global presence

Raytheon has a presence in ~80 countries. It banks on building strong international relationships to meet the national security and technology needs of nations around the world. The company’s offices are spread over 19 countries. The offices span the United Kingdom, Spain, France, Germany, Canada, and Australia.

Other companies

The company faces competition both domestically and internationally. Other companies in the aerospace and defense segment are Honeywell (HON), General Dynamics (GD), Exelis (XLS), and Northrop Grumman (NOC). Together these companies, except for Exelis, form an ~5% holding of the iShares Select Dividend ETF (DVY). It has various companies in the international market.

In the next part of this series, we’ll look at how the company performed in fiscal year 2014.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.