{"id":78630,"date":"2014-01-31T19:21:55","date_gmt":"2014-01-31T11:21:55","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/raytheon-to-focus-on-international-market-as-us-government-business-declines\/"},"modified":"2014-01-31T19:21:55","modified_gmt":"2014-01-31T11:21:55","slug":"raytheon-to-focus-on-international-market-as-us-government-business-declines","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/raytheon-to-focus-on-international-market-as-us-government-business-declines\/","title":{"rendered":"Raytheon to Focus on International Market As US Government Business Declines"},"content":{"rendered":"<\/p>\n
\"Raytheon
Raytheon corporate headquarters. Photo: Raytheon<\/figcaption><\/figure>\n<\/p>\n

[Via Satellite 01-31-2014] Raytheon reported high earnings in the fourth quarter of 2013, but reported lower-than-expected revenues due to the decline in U.S. military spending, an effect of the 2011 Budget Control Act. The 2013 fourth quarter and full-year results call also revealed that 2014 and 2015 are expected be transitional or \u201cdown\u201d years for the company\u2019s domestic sales. As a result, Raytheon will turn its focus to its growing international markets over the next two years.<\/p>\n

\u201cWe\u2019ve always viewed [these years] as the transition,\u201d said Raytheon\u2019s CEO Bill Swanson. \u201cWhen you look at the budget process, even with sequestration and the Budget Control Act, 2016 was always the year where there was an uptick where it started to come back again, and even when you look at it, 2017 and on [is when] the budgets start to increase.\u201d<\/p>\n

With last year\u2019s net sales being $23.7 billion \u2014 down 2.9 percent from last year \u2014 a 3 percent increase in international sales offset the decline of domestic sales. International business accounted for 29 percent of Raytheon\u2019s total sales and 43 percent of total bookings in 2013. According to Swanson, the 10 percent increase in overall bookings for the last fiscal year was a result of the company\u2019s \u201cstrategic focus on global markets.\u201d<\/p>\n

\u201cOur international business continues to be a significant driver of our results,\u201d said Swanson. \u201cIt takes a while to establish your credit internationally, and our customers really count on the fact that we\u2019ve been in the Middle East, Japan, Taiwan for 50 years. To me, it\u2019s all about relationship and trust, and that does not happen overnight.\u201d<\/p>\n

Raytheon\u2019s largest international deals are in the Middle East. New contracts in the region include a $1.28 billion agreement with Oman for ground support equipment, a full training package and technical assistance; as well as a $2 billion deal with Qatar for a Patriot missile defense system.<\/p>\n<\/p>\n

\"Bill
Bill Swanson, CEO of Raytheon. Photo: Bloomberg<\/figcaption><\/figure>\n<\/p>\n

\u201cThe [Middle East] region needs the kinds of products and services that we as a company have in our portfolio,\u201d said Swanson. \u201cThere hasn\u2019t been any kind of turndown whatsoever in what we\u2019re doing in the region. In fact, we find the opposite is true, that they\u2019re counting on us to do more to help them as they worry about their own national security. I know what\u2019s written in the papers, but to me, firsthand knowledge is really important and it\u2019s why we go over there to [interact] with people we\u2019ve been doing work with for a long, long time.\u201d<\/p>\n

For Thomas Kennedy, current COO and soon-to-be CEO of Raytheon, Oman presents one of the most exciting growth potential for the company at the moment. \u201cOman is a new country for us, and we see additional opportunities [there] over the next five years,\u201d he said. Kennedy also mentioned Qatar as a growth opportunity with an expected contract for an air defense operating center toward the end of this year.<\/p>\n

As U.S. dollars will continue to be hard to find and business remains strong in the Middle East for Raytheon, the company is in a good position to explore new markets. Swanson highlighted Europe and Australia as new candidates for business in the next two to three years, saying Europe is going to \u201cupgrade what they have, and we\u2019ll see that as an opportunity.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Raytheon corporate headquarters. Photo: Raytheon [Via Satellite 01-31-2014] Raytheon reported high earnings in the fourth quarter of 2013, but reported lower-than-expected revenues due to the decline in U.S. military spending, an effect of the 2011 Budget Control Act. The 2013 fourth quarter and full-year results call also revealed that 2014 and 2015 are expected be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-78630","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/78630"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=78630"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/78630\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=78630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=78630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=78630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}