Raytheon Co. named William Swanson, the head of its biggest business, to the newly created position of president as part of a plan to control costs by reorganizing the fourth-largest U.S. defense contractor.
Swanson, 53, will report to Chief Executive Officer Daniel
Burnham and will oversee the company’s government and defense
businesses, Raytheon said in a statement. The company also named
Frank Marchilena as head of its discontinued operations to replace
Phil LePore, who is retiring.
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The realignment comes a day before Raytheon is to report
second-quarter results and amid months of investor criticism of
Burnham’s failure to control costs. Earlier this month, Raytheon
estimated that completing two Massachusetts power plants it
guaranteed will cost as much as $1.26 billion, about four times
initial estimates. Some investors say Swanson may be the answer.
“Swanson is well regarded by investors,” said Win Murray,
an analyst with Columbia Management Group, which has $170 billion
in assets, including Raytheon shares. “It’s obvious that the
company needs more financial oversight.”
Swanson joined Raytheon in June 1972. He had been head of
Raytheon’s electronics business, which makes missiles such as the
Tomahawk and systems for ships and armored vehicles.
Raytheon said in the statement that it “will streamline
operations” at its electronics unit and at its business that
makes radar and surveillance systems. The company may restructure
other units to increase productivity. Raytheon said it expects the
realignment to be completed by the end of August.
Bloomberg News
