Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Raytheon Company    RTN

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Predators Lurk As Aircraft Maker Hawker Beechcraft Restructures

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/13/2012 | 09:20pm CET
   By David Pearson 
   Of  
 

U.S. business aircraft maker Hawker Beechcraft's competitors may have been looking for all or part of it to come on to the market as the loss-making company struggled under a huge debt burden, but the decision to see Chapter 11 protection from its creditors means it will be reborn as a stronger, debt-free industry player, a senior company executive said Sunday.

"We're going to emerge as a strong, well-positioned, profitable company in the not-too-distant future," predicted Shawn Vick, executive vice president-customers, in an interview with Dow Jones Newswires on the sidelines of the European Business Aviation Convention and Exhibition.

Crippled by $2.5 billion of debt, Hawker Beechcraft filed for Chapter 11 protection on May 3, and expects to emerge in the last quarter of this year a much leaner company that will be able to resume spending on developing new products after having lagged its peers in recent years after the financial crisis of 2008 knocked the bottom out of the corporate aircraft market.

Holders of the company's debt, including the likes of Centerbridge Partners, Angelo Gordon & Company, and Capital Research & Management, have agreed to do a debt for equity swap that will give them control. They also agree to put up $400 million to allow Hawker Beechcraft to keep paying its suppliers.

Private equity firms and buyout specialists Goldman Sachs Capital Partners and Onex (OCX.T) that bought the company from Raytheon Co (>> Raytheon Company) in 2007 will retain token stakes at the outcome of the balance sheet restructuring.

"Do I expect interest from third parties? Yes, there's been interest from third parties," Vick said. "Am I going to be surprised if we're of interest to a variety of people who might view us as a strategic opportunity? No I won't be surprised at all because that's the way the world works."

Vick, who has been involved in private equity for 20 years, noted that "there are always either financial buyers or strategic buyers looking for value opportunities. Anything's possible. To assume anything other than that isn't being realistic."

Industry analysts have said that the sale of Hawker Beechcraft as a single entity remains a more likely proposition than a sale of different pieces.

At a trade show where the word consolidation is being aired frequently at a time when the corporate aviation sector is struggling to get to its feet, Vick acknowledges that although there is lots of discussion about consolidation he thinks it is all speculation.

"In the market downturn that has been experienced globally, is consolidation of the natural course of discussions among business leaders? Absolutely. Will it continue to be discussed? Absolutely. Will we participate in that? Only if it makes sense for the best interests of this company and its shareholders. Until then, it's just speculation," he said.

-By David Pearson, Dow Jones Newswires; +331 4017 1740, david.pearson@dowjones.com

Stocks mentioned in the article : Raytheon Company
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on RAYTHEON COMPANY
01:59p RAYTHEON : and Center for Cyber Safety and Education expand cybersecurity schola..
01:59p RAYTHEON : U.S. Navy awards Raytheon $235 million for Standard Missile-6 product..
01/23 RAYTHEON CO/ : Change in Directors or Principal Officers, Financial Statements a..
01/23 RAYTHEON : U. S. Navy awards Raytheon $235 million for Standard Missile-6 produc..
01/23RAYTHEON COMPANY : annual earnings release
01/23 RAYTHEON : and Center for Cyber Safety and Education expand cybersecurity schola..
01/21 RAYTHEON : Federal Contracts Awarded by Federal Agencies in Alabama (Jan. 21)
01/21 RAYTHEON : Federal Contracts Awarded to Companies in Indiana (Jan. 21)
01/21 RAYTHEON : MILITARY $514,185 Federal Contract Awarded to Raytheon
01/19 RAYTHEON : Federal Contracts Awarded to Companies in Massachusetts (Jan. 19)
More news
Sector news : Aerospace & Defense - NEC
02:26p LOCKHEED MARTIN : warns of material weakness in Sikorsky financial statements
01/23DJMARKET SNAPSHOT : Stock Market Slumps As Trump Uncertainty Rattles Investors
01/23DJLOCKHEED MARTIN : Investor Focus Is on Managing Relations With White House -- Ea..
01/23DJUNITED TECHNOLOGIES : Correction to 'Trump Promises Very Major Border Tax on Out..
01/23DJMARKET SNAPSHOT : Stock Market Slumps As Trump Uncertainty Rattles Investors
More sector news : Aerospace & Defense - NEC
News from SeekingAlpha
01/23 DEFENSE SECTOR UPDATE JANUARY 16-22 : BAE Systems Has A Big Week - Is Its Time F..
01/23 Raytheon gets contract for Standard Missile-6 production
01/20 BOEING : Ready To Take Off... You Haven't Seen Anything Yet
01/17 Follower Favorite Dividend Dogs Led By NextEra Into 2017
01/16 DEFENSE SECTOR UPDATE JANUARY 9-15 : Lockheed Locks In The F-35
Advertisement
Financials ($)
Sales 2016 24 413 M
EBIT 2016 3 232 M
Net income 2016 2 213 M
Debt 2016 2 223 M
Yield 2016 1,98%
P/E ratio 2016 19,73
P/E ratio 2017 19,48
EV / Sales 2016 1,86x
EV / Sales 2017 1,77x
Capitalization 43 181 M
More Financials
Chart RAYTHEON COMPANY
Duration : Period :
Raytheon Company Technical Analysis Chart | RTN | US7551115071 | 4-Traders
Full-screen chart
Technical analysis trends RAYTHEON COMPANY
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 165 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Thomas A. Kennedy Chairman & Chief Executive Officer
Anthony F. O'Brien Chief Financial Officer & Vice President
Kevin Neifert Chief Information Officer
Michael C. Ruettgers Independent Director
William R. Spivey Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
RAYTHEON COMPANY3.56%43 181
UNITED TECHNOLOGIES CO..0.66%90 855
LOCKHEED MARTIN CORPOR..3.02%75 436
AIRBUS GROUP3.98%54 329
GENERAL DYNAMICS CORPO..2.65%53 970
NORTHROP GRUMMAN CORPO..-0.38%40 838
More Results