HUGHES AND Raytheon have each reported stronger third-quarter profits as the effects of consolidation in the US defence-electronics sector begin to show through.
Profits at Hughes grew by 5%, to reach $244 million, rising nearly twice as fast as sales. The company says that increased commercial-electronics sales helped the result, as well as the acquisition of CAE-Link, which pushed revenues up by 4% in the aerospace and defence segment.
Raytheon's profits increased by 4.6%, to $201 million, but revenues leaped by nearly 14%, helped by the acquisition of E-Systems, which helped to offset a further decline in performance at the group's defence-electronics operations.
The group's civil businesses also posted strong performances, with a record quarter from the Raytheon Aircraft corporate-jet and light-aircraft division.
Source: Flight International