[Satellite TODAY Insider 10-28-11] Raytheon Co. reported strong 2011 third quarter bookings of $6.88 billion compared with $6.03 billion in the third quarter 2010 and saw healthy increases in its space-related business units, the company announced in its latest financial results issued Oct. 27.

   The overall company, however, reported a quarterly net sales drop year-over-year from $6.27 billion to $6.13 billion

   Raytheon more than doubled its operating cash flow from the 2010 third quarter mark of $413 million to $859 million in the most recent quarter. Raytheon Chairman and CEO William Swanson said the increase in operating cash flow was primarily due to the timing of payroll periods, a tax refund and reductions in working capital.

   “We repurchased 7.6 million shares of common stock for $312 million as part of our previously announced share repurchase program. Year-to-date, in 2011, we repurchased 20.1 million shares of common stock for $937 million. Also, as previously announced in September 2011, our board of directors authorized the repurchase of up to an additional $2 billion of the Company’s outstanding common stock,” Swanson said in a statement.

   Raytheon’s Intelligence and Information Systems (IIS) business had third quarter 2011 net sales of $760 million compared with $735 million in the third quarter 2010, due to higher sales on classified programs. IIS recorded $58 million of operating income in both the third quarter of 2010 and 2011. 

   IIS booked a $180 million contract during the 2011 third quarter to provide intelligence, surveillance and reconnaissance (ISR) support to the U.S. Air Force and a $163 million deal for the Common Ground System to the Joint Polar Satellite System (JPSS) program for NASA. IIS also said it booked $313 million on a number of classified contracts.

   Raytheon Space and Airborne Systems’ (SAS) third quarter 2011 net sales rose 5 percent to $1.3 billion compared with $1.23 billion in the same period last year. Swanson said the increase in net sales was primarily due to growth on intelligence, surveillance and reconnaissance (ISR) systems programs and higher net sales related to Raytheon Applied Signal Technology, which was acquired in the first quarter of 2011. An $8 million acquisition-related charge and $14 million spent on a contract modification reduced the business unit’s third-quarter 2011 operating income, however, SAS booked $78 million on radar contracts for an international customer and $468 million on a number of classified contracts.

   “Our continued focus on delivering affordable and innovative solutions to our customers is highlighted by robust third quarter bookings. Solid execution and cost reduction efforts drove strong operating margin and cash flow performance in the quarter,” said Swanson.