Raytheon’s [RTN] strengths in electronic warfare, air and missile defense, C4ISR and cyber security along with building its workforce, will continue to be areas the company invests in to drive innovation and future growth, Thomas Kennedy, who became the company’s new CEO effective today, said in an internal question and answer interview posted on the company’s website today.
“We are already seeing the benefit of these investments in key program wins on Next Generation Jammer and Air and Missile Defense Radar program awards,” according to Kennedy, a 30-year veteran of Raytheon. “And we are well positioned to capture the increased focus and investment in cyber outlined in the Department of Defense’s budget.”
Kennedy also said that that Raytheon will continue to build on the success former CEO William Swanson had in increasing the company’s international sales. Pointing out that 30 percent of the company’s $22.1 billion in bookings last year is for international business, Kennedy said, “We will continue our efforts to build on success in the global markets, including enabling greater co-development and co-production in the local markets.”
Growth will also be driven by the Raytheon’s commitment to performance, innovative solutions and its customer relationships, Kennedy said. These commitments will also continue to be supported by research and development investments.
“We will compete in both our domestic and international markets by providing differentiated, affordable solutions,” he said. “We have the financial strength to operate with agility in a rapidly evolving and highly competitive environment. And we remain committed to building a strong innovation workforce pipeline for the future.”
Before becoming CEO, Kennedy had been Raytheon’s chief operating officer (COO) since April 2013 and led efforts last year to streamline its organizational structure from six operating segments to four. Before his stint as COO, Kennedy led the Integrated Defense Systems segment, which oversees Patriot air and missile defense systems, the AN/TPY-2 radar and the Navy’s Air and Missile Defense Radar, as well as other programs for customers in the United States and globally.
Kennedy assumes the top job at Raytheon amid a difficult period for the defense industry, which is facing reduced defense spending domestically. This year, Raytheon expects its sales to be down 3 to 5 percent, although the company is forecasting strong bookings and higher per share earnings, driven by a benefit from pension returns.
Swanson, who spent more than 11 years at the helm of Raytheon, will remain the company’s chairman during the leadership transition.