Raytheon Co.
raised by $400 million to $450 million its estimate of losses on
two Massachusetts power-plant projects it’s obligated to complete
following the sale of its construction unit two years ago.
The company had estimated the losses at $813 million. The
increase was because of schedule delays, higher material costs and
declining productivity, Raytheon said in a release sent by PR
Newswire.
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Raytheon assumed responsibility for the costs to build the
plants in Weymouth and Everett, Massachusetts, after Washington
Group International Inc. abandoned the projects. Washington Group
filed for bankruptcy projection in May 2001, blaming its purchase
of Raytheon’s construction unit for its financial problems.
Both projects will be completed by the end of the year,
Raytheon said. The Lexington, Massachusetts-based company said it
still expects 2002 profit of $2.10 to $2.20 a share. The company
is expected to earn $2.18, the average estimate of analysts
surveyed by Thomson First Call.
Bloomberg News
