|
Raytheon Company () is a major United States military contractor based in Waltham, Massachusetts. The company has 80,000 employees worldwide, and annual revenues of approximately US$ 22 billion. More than 90 percent of Raytheon's revenues are obtained from defense contracts, and as of 2005 it is the fifth largest military contractor in the world.•
History Two former college roommates Laurence K. Marshall and Vannevar Bush, along with scientist Charles G. Smith, founded the American Appliance Company in Cambridge, Massachusetts in 1922. The company's first product was a vacuum tube rectifier, called the Raytheon ("light of the gods") and used for radio-receiver power supplies that plugged into the power grid in place of large batteries. The company changed its name to Raytheon in 1925, and by the 1930s it had grown to become one of the larger vacuum tube manufacturing companies. In World War II Raytheon manufactured magnetron tubes for use in radar sets, and then complete radar systems. (In 1945 Raytheon's Percy Spencer invented the microwave oven by discovering that the magnetron could also cook food.) In 1948 Raytheon began to manufacture guided missiles. During the post-war years Raytheon also made radio and television transmitters and related equipment for the commercial market in the U.S., and got into the educational publishing business with the acquisition of D.C. Heath. In the 1950s Ratheon got into manufacturing transistors, including the very popular CK722, priced and marketed to hobbyists. Raytheon acquired Beech Aircraft in 1980; in 1993 the company also purchased British Aerospace's business jet product line. These two entities were merged in 1994 to become Raytheon Aircraft Company. In the mid-1990's, Raytheon purchased the defense businesses of E-Systems and Texas Instruments. In 1997 Raytheon also acquired the defense business of Hughes Electronics from General Motors, which included a number of product lines previously purchased by Hughes including the former General Dynamics missile business, the defense portion of Delco Electronics, and Magnavox Electronic Systems. These acquisitions/mergers added many important military products to Raytheon's portfolio. Businesses Raytheon is currently composed of seven major businesses: Raytheon’s globally capable businesses are supported by several dedicated international operations including: Raytheon Australia; Raytheon Canada Limited; operation is Japan; Raytheon Microelectronics, Spain: Raytheon System Limited in the UK; and ThalesRaytheonSystems, France. Products Raytheon is a leading developer and manufacturer of radars (including AESAs), electro-optical sensors, and other advanced electronics systems for airborne, naval and ground based military applications. Examples include: Additionally, missiles form a large part of Raytheon's business, including: Raytheon, oftentimes in conjunction with Boeing, Lockheed Martin or Northrop Grumman, is also heavily involved in the satellite sensor business. Much of its Space and Airborne Systems division in El Segundo, CA is devoted to this, a business it inherited from Hughes. Examples of programs include: In the framework of Ground-Based Midcourse Defense, Raytheon develops a Ground-Based Interceptor (GBI) which includes a booster missile and a kinetic Exoatmospheric Kill Vehicle (EKV). The company also makes several software radio and digital communication systems for military applications such as Cooperative Engagement Capability (CEC), is participating in Navy-Marine Corps Intranet (NMCI), ECHELON and the Joint Tactical Terminal (JTT) programs. Raytheon also manufactures semiconductors for the electronics industry. In the late 20th century it produced a wide range of integrated circuits and other components, but as of 2003 its semiconductor business specializes in gallium arsenide (GaAs) components for radio communications. It is also making efforts to develop gallium nitride (GaN) components for next-generation radars and radios. Another principal commercial product line is corporate jet aircraft, which are sold under the Beechcraft and Hawker brand names. Raytheon currently manufactures just one military aircraft, the T-6 Texan II. Raytheon also produces and runs the ABACUS (Advanced BAttlefield CompUter Simulation) or Higher Formation Trainer (HFT) for training HQ's from small specialist units up to corps level. Corporate governance William H. Swanson is the Chairman and CEO. Other members of the board of directors of Raytheon are: Barbara Barrett, Vern Clark, Ferdinand Colloredo-Mansfeld, John Deutch, Thomas Everhart, Frederic Poses, Warren Rudman, Michael Ruettgers, Ronald Skates, William Spivey, and Linda Stuntz. Disputed claims about the Patriot missile During the 1991 Gulf War, Raytheon received widespread publicity in the United States in connection with its manufacture of the Patriot Missile (MIM-104 Patriot). The Patriot Missile is an anti-aircraft missile which was upgraded to have some capability against ballistic missiles. The Patriot had allegedly intercepted Scud Missiles launched by Iraq in its defense against the U.S. led invasion. When President George H. W. Bush traveled to Raytheon's Patriot manufacturing plant in Andover, Massachusetts during the Gulf War, he declared, the ""Patriot is 41 for 42: 42 Scuds engaged, 41 intercepted!"• After the Gulf War had concluded, the staff of the House Government Operations Subcommittee on Legislation and National Security reported, "The Patriot missile system was not the spectacular success in the Persian Gulf War that the American public was led to believe. There is little evidence to prove that the Patriot hit more than a few Scud missiles launched by Iraq during the Gulf War, and there are some doubts about even these engagements. The public and the Congress were misled by definitive statements of success issued by administration and Raytheon representatives during and after the war."• An upgraded version of the Patriot, called PAC-3 was the first version designed from the outset to engage ballistic missiles, and was deployed in 2002. The PAC-3 had a 100% success rate intercepting tactical ballistic missiles in Operation Iraqi Freedom, although it was involved in at least two friendly fire incidents. AGES Lawsuit In 1996 a corporation called AGES Group filed suit against Raytheon in federal court in Alabama over a $450 million contract to service C-12 Huron and U-21 military aircraft.• The Boston Herald reported that AGES alleged that the security firm Wackenhut Corporation, hired by Raytheon, used video and audio surveillance to spy on a consulting firm hired by AGES to help it prepare its bid. AGES also alleged that stolen confidential pricing documents were turned over to Raytheon. Both Raytheon and AGES had been vying for the contract, which Raytheon had held for decades but which AGES won in 1996. On May 12, 1999, Reuters reported that Raytheon would pay $3 million to AGES Group and purchase $13 million worth of AGES aircraft parts to settle AGES lawsuit. The settlement was exceptional in that the parties agreed that judgment would be entered against Raytheon, legally establishing the validity of AGES' allegations. Securities Litigation In October of 1999, Raytheon was the subject of a number of securities class action lawsuits alleging it had issued a series of materially false and misleading statements including overstating the company's 1997 and 1998 revenues, concealing cost overruns and inflating its financial results. The suits were brought in response to a massive drop in value of Raytheon's common stock as traded on the New York Stock Exchange. On Tuesday, October 12, 1999, Raytheon shares were trading at about 45% below the level at which they had been traded on October 11, 1999. The plunge in stock prices was triggered by a Wall Street Journal report that Raytheon was over cost or behind schedule on more than a dozen fixed-price defense contracts. This crash represented a loss of about $8 billion in market value in a single day. On May 13, 2004 Raytheon reported that it had reached a preliminary agreement to pay $410 million in cash and securities to settle a class-action lawsuit alleging it misled investors by not disclosing difficulties on various Pentagon and construction projects five years before. Reports of CEO Plagiarism On April 24, 2006 in a statement released by Raytheon, CEO Swanson admitted to plagiarism in claiming authorship for his booklet, "Swanson's Unwritten Rules of Management," after being exposed by The New York Times.• On May 2, 2006, Raytheon withdrew distribution of the book.• The following day, the company's board of directors announced that "In response to this matter, the Board has decided not to raise Mr. Swanson's salary above its 2005 level, and will reduce the amount of restricted stock for which he is eligible in the coming year by 20 percent." • NBC News accuses Army of favoring Raytheon in anti-RPG bid As of September 2006, an NBC News report of the Army's award of an anti-RPG system has raised questions about favoritism toward the defense contractor. NBC alleges that the selection team included numerous Raytheon employees. • The anti-RPG system has now been put to use by the IDF. Community outreach Raytheon contributes to the community in various ways.• September 11, 2001 attacks Four Raytheon employees died in the terrorist attacks on September 11, 2001. American Airlines Flight 77: American Airlines Flight 11: See also | |||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||
 |
|
| |