Bloomberg

WASHINGTON — Raytheon, the world’s largest missile maker, said third-quarter earnings climbed 50% as the war in Iraq lifted sales of defence electronics and surveillance gear, and orders for corporate jets increased.

Net income rose to $228m or 50c a share, from $152m or 34c a year earlier, the Waltham, Massachusetts-based company said yesterday.

Excluding some costs, profit topped analysts’ expectations. Sales increased a less-than- anticipated 8% to $5,3bn.

The war in Iraq is leading to increased orders for Raytheon products from thermal weapon sights to Paveway laser-guided bombs and Excalibur satellite-guided artillery shells.

Strength in the defence business is being complemented by higher sales of its Hawker and Premier business jets.

The company raised its profit forecast for the year.

“Raytheon operates in core markets — intelligence, surveillance, reconnaissance, precision munitions — that will continue to be well funded,” Legg Mason analyst Troy Lahr said.

Shares in Raytheon rose 25c to $36,93 in New York Stock Exchange composite trading yesterday. They have fallen 4,9% this year. Sales were expected to rise to $5,44bn from $4,94bn, according to 13 analysts surveyed by Thomson.

Raytheon increased its profit forecast for this year from continuing operations from $2 to $2,05 a share.

The company left its revenue forecast unchanged at $21,1bn to $21,6bn. Profit from continuing operations will rise from $2,40 to $2,50 a share on sales of $20,8bn to $21,3bn next year, the company said. Business-jet market conditions are now at their strongest level since early 2003, UBS Investment Research said in a survey published on September 16.