Raytheon 2Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“In the U.S., the debate surrounding near and long term resource allocation to national security is ongoing. Congress and the administration continue to work toward a compromise on the fiscal ’14 budget and are not there yet. Current versions of the budget don’t include sequestration, and barring some type of grand bargain, the defense budget ultimately will need to be reconciled with the cap spelled out in the Budget Control Act of 2011, which is about $50 billion lower than the currently proposed levels.

The outcome remains unclear, but as we’ve said all along, we remain focused on executing our strategy and managing the business in order to deliver the best value for our customers and shareholders, whatever the environment.”

“International continues to be a key driver of the business.”

“I can tell you that Raytheon will be making a shift in how we look at our international business because 30% will happen and we’ll be prepared for it. And then as we get to that milestone, we’ll be thinking about 35% because you got to think in increments to go do it.”

[analyst comment] “Northrop mentioned that the impact of higher rates had an adverse impact on their return on assets [in their pension plan] year to date. They were only up 50 bps through the end of June.”

” For us, I would say more than on a year to date basis, but as of just a couple of days ago, we were just under 8% return on assets.” [in the pension plan]