Ramon Lopez/WASHINGTON DC
Raytheon has put into place a sweeping reorganisation of its defence and government electronics businesses as part of an effort to resolve recent financial problems.
The changes come after Raytheon's disclosure last month that revenues and profits will be lower than expected this year and next, mainly because of problems facing its defence electronics business.
Contract delays, competitive pressures and consolidation problems are forcing down profit margins. The company expects to record charges of $668 million this year and next, up from an expected $450 million. Around $195 million of the charges has been attributed to performance issues at Raytheon Systems (Flight International, 20-26 October).
Raytheon's revamping eliminates Raytheon Systems, which was created in the wake of the takeover of Hughes Aircraft.
A new Electronic Systems business has been created by combining the company's defence systems and sensors and electronic systems segments.
Product lines include air defence and missile systems, radars and electro-optical technologies.
William Swanson, who was chairman and chief executive of Raytheon Systems, heads Electronic Systems, and will be based in El Segundo, California, the headquarters for the new organisation.
Three businesses that were part of Raytheon Systems now report directly to Dan Burnham, Raytheon's chairman and chief executive.
Meanwhile, domestic and international business development has been combined into one organisation headed by Kenneth Dahlberg who was president and chief operating officer at Raytheon Systems. He will oversee major international projects such as the UK's Airborne Standoff Radar (ASTOR) programme.
Raytheon's reorganisation follows the upheaval at Lockheed Martin where Peter Teets, president and chief operating officer, and James Blackwell, the head of the aeronautics division, stepped down in the wake of a series of poor financial performances.
Source: Flight International