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 news 

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
12/09 RAYTHEON : Federal Contracts Awarded to Companies in Massachusetts (Dec. 9)
12/09 RAYTHEON : MILITARY $15.85 Million Federal Contract Awarded to Raytheon
12/08 RAYTHEON : wins $225m contract for increased Patriot missile defense capability
12/08 GLOBAL NAVAL SYSTEMS SURVEILLANCE RA : Raytheon Company, Saab Group, Thales Grou..
12/08 RAYTHEON : Presolicitation Notice - 10-- 10-Manufacture, repair and/or modificat..
12/07 RAYTHEON : Federal Contracts Awarded by Federal Agencies in Florida (Dec. 7)
12/07 RAYTHEON : Federal Contracts Awarded to Companies in Kentucky (Dec. 7)
12/07 RAYTHEON : Federal Contracts Awarded by Federal Agencies in Oklahoma (Dec. 7)
12/07 RAYTHEON : Federal Contracts Awarded to Companies in Rhode Island (Dec. 7)
12/07 RAYTHEON : DARPA developing advanced tech to protect US power grid against cyber..
More news
Sector news : Aerospace & Defense - NEC
12/08DJEx-Im Bank Critics, Supporters Look to Donald Trump for Help
12/08DJAIRBUS : Says Canada to Buy 16 C295W Search-and-Rescue Planes
12/08DJAirline Profits to Reach Record Heights Before 2017 Descent
12/08DJUNITED TECHNOLOGIES : Trump Attacks Carrier Union Leader
12/08DJPostelection Rally Lifts Stocks to New Heights
More sector news : Aerospace & Defense - NEC
News from SeekingAlpha
12/08 Lockheed, Northrop give back chunk of recent gains
12/05 DEFENSE SECTOR UPDATE NOVEMBER 28-DE : Here Comes Huntington
12/05 A Different Take On The 'Trump Rally' (Military Defense Stocks)
12/05 Raytheon to help protect U.S. power grids
12/04 I Sold Wells Fargo And Bought Brookfield Infrastructure Partners
Advertisement
Financials ($)
Sales 2016 24 426 M
EBIT 2016 3 235 M
Net income 2016 2 213 M
Debt 2016 2 278 M
Yield 2016 1,99%
P/E ratio 2016 19,61
P/E ratio 2017 19,46
EV / Sales 2016 1,85x
EV / Sales 2017 1,76x
Capitalization 42 919 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 19
Average target price 161 $
Spread / Average Target 9,9%
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 COMPANY17.37%42 919
UNITED TECHNOLOGIES CO..12.87%89 282
LOCKHEED MARTIN CORPOR..19.39%75 954
GENERAL DYNAMICS CORPO..26.43%52 886
AIRBUS GROUP-5.52%48 662
NORTHROP GRUMMAN CORPO..25.90%41 901
More Results