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 Raytheon's former headquarters complex inWaltham, Massachusetts | |
| Company type | Public |
|---|---|
| NYSE: RTX | |
| Industry | Aerospace anddefense |
| Founded | July 7, 1922; 102 years ago (1922-07-07), inCambridge, Massachusetts, U.S. |
| Founder | Vannevar Bush Laurence K. Marshall Charles G. Smith |
| Defunct | April 3, 2020 (2020-04-03) |
| Fate | Merged withUnited Technologies |
| Successor | RTX Corporation |
| Headquarters | Waltham, Massachusetts, U.S. |
Area served | Worldwide |
Key people | Phil Jasper (chairman andCEO) |
| Revenue | US$29.18 billion (2019) |
| US$3.34 billion (2019) | |
Number of employees | ~67,000 (2018) |
| Website | raytheon.com (Archived) |
| Footnotes / references [1][2] | |
Raytheon is a business unit ofRTX Corporation and is a majorU.S. defense contractor and industrial corporation withmanufacturing concentrations inweapons and military and commercialelectronics. Founded in 1922, it merged in 2020 withUnited Technologies Corporation to form Raytheon Technologies,[3] which changed its name toRTX Corporation in July 2023.
Raytheon was established in 1922,reincorporated in 1928, and adopted the Raytheon Company name in 1959. More than 90% of Raytheon's revenues were obtained from military contracts and, as of 2012, it was the fifth-largest military contractor in the world.[4] As of 2015[update], it was the third-largestdefense contractor in the United States by defenserevenue.[5] It was the world's largest producer ofguided missiles, and was involved in corporate and special-missionaircraft until early 2007.[6] In 2018, the company had around 67,000 employees worldwide and annual revenues of aboutUS$25.35 billion.[7]
Over the years, Raytheon shifted its headquarters among various Massachusetts locations:Cambridge from 1922 to 1928;Newton until 1941;Waltham until 1961; and finally,Lexington until 2003.[8]
In 1922,Vannevar Bush, scientist and professor in the Department of Electrical Engineering at theMassachusetts Institute of Technology (MIT), along with engineer and physicist Laurence K. Marshall, and scientist Charles G. Smith, founded the American Appliance Company inCambridge, Massachusetts.[9] Its focus, which was originally on newrefrigeration technology, soon shifted toelectronics. The company's first product was a gaseous (helium)voltage-regulator tube that was based on Charles Smith's earlierastronomical research of the starZeta Puppis.[10] The electron tube was christened with the nameRaytheon (a compound of Old French and Greek meaning 'light from the gods')[11] and was used in abattery eliminator, a type ofradio-receiverpower supply that plugged into thepower grid in place of largebatteries. This made it possible to convert householdalternating current to a regulated, high voltagedirect current for radios and thus eliminate the need for expensive, short-lived batteries.
In 1925, the company changed its name to Raytheon Manufacturing Company and began marketing its rectifier, under the Raytheon brand name, with commercial success. In 1928 Raytheon merged with Q.R.S. Company, an American manufacturer of electron tubes and switches, to form the successor of the same name, Raytheon Manufacturing Company.[citation needed] By the 1930s, it had already grown to become one of the world's largest vacuum tube manufacturing companies.[citation needed] In 1933 it diversified by acquiring Acme-Delta Company, a producer oftransformers, power equipment, and electronicauto parts.[citation needed]
Early in World War II, physicists in the United Kingdom invented themagnetron, a specializedmicrowave-generating electron tube that markedly improved the capability of radar to detect enemy aircraft. American companies were then sought by the US government to perfect andmass-produce the magnetron for ground-based, airborne, and shipborne radar systems, and, with support from theMassachusetts Institute of Technology'sRadiation Laboratory (recently formed to investigatemicrowave radar), Raytheon received a contract to build the devices. Within a few month, Raytheon began to manufacture magnetron tubes for use in radar sets, and then complete radar systems. During the war, Raytheon also pioneered the production of shipboard radar systems, particularly for submarine detection. Raytheon was also a contractor for the mass-production of miniatureshock-resistant vacuum tubes used inproximity fuses. These tubes were difficult to manufacture and required rigorous attention to detail.[12] At war's end in 1945, the company had built about 80 percent of all magnetrons. Raytheon ranked 71st among U.S. corporations in the value of World War II military production contracts.[13]
In 1945, Raytheon'sPercy Spencer invented themicrowave oven by discovering that the magnetron could rapidly heat food. In 1947, the company demonstrated the Radarange microwave oven for commercial use.[14]
During the post-war years, Raytheon also made generally low- to medium-powered radio and televisiontransmitters and related equipment for the commercial market, but the high-powered market was solidly in the hands of larger, better-financed competitors such asContinental Electronics,General Electric andRadio Corporation of America.
In 1946, the company expanded its electronics capability through acquisitions that included the Submarine Signal Company (founded in 1901), a leading manufacturer of maritime safety equipment. With its broadened capabilities, Raytheon developed the firstguidance system for a missile that could intercept a flying target. In 1948,Charles Francis Adams IV was appointed president of the company and served until 1960. In 1948, Raytheon began to manufactureguided missiles. In 1950, itsLark became the first such missile to destroy a target aircraft in flight. Raytheon then received military contracts to develop the air-to-airSparrow and ground-to-airHawk missiles, projects that received impetus from theKorean War. In later decades, it remained a major producer of missiles, such as thePatriot antimissile missile and the air-to-airPhoenix missile.
Raytheon made a foray into computers, producing theRAYDAC computer for the U.S. Navy which became operational in 1953. "Unfortunately, the machine was technically obsolete by the time it was operational."[citation needed] Also in 1953, the company began work on a follow-on, the RAYCOM, which was never completed.[15] In 1954, it entered into a joint venture withHoneywell to form the Datamatic corporation. However it sold its interest to Honeywell a year later, before introduction of theDATAmatic 1000 system.
In 1958, Raytheon acquired the marine electronics company Applied Electronics Company to make commercial marine navigation and radio gear, as well as less-expensive Japanese suppliers of products such as marine/weather band radios anddirection-finding gear.[16][failed verification] In the same year, it changed its name toRaytheon Company.
In the 1950s, Raytheon began manufacturingtransistors, including theCK722, priced and marketed to hobbyists.
In 1961, the British electronics companyA.C. Cossor merged with Raytheon, following its sale byPhilips. The new company's name was Raytheon Cossor. The Cossor side of the organisation was still in the Raytheon group in 2010.
In 1965, it acquiredAmana Refrigeration, Inc., a manufacturer ofrefrigerators andair conditioners. Using the Amana brand name and its distribution channels, Raytheon began selling the first countertop householdmicrowave oven in 1967 and became a dominant manufacturer in the microwave oven business.
In 1966, the company entered the educational publishing business with the acquisition ofD.C. Heath and Company, marketing an influential physics textbook developed by thePhysical Science Study Committee. Raytheon also manufactured theApollo Guidance Computer, which was introduced that year and flew aboard allNASAProject Apollo missions.
In the late 1970s, Raytheon acquiredMcGraw-Edison's appliances division notable for theSpeed Queen line of washers and dryers.
In 1980, Raytheon acquiredBeech Aircraft Corporation, a leading manufacturer of general aviation aircraft founded in 1932 byWalter H. Beech. In 1993, the company expanded its aircraft activities by adding the Hawker line of business jets by acquiring Corporate Jets Inc., the business jet product line ofBritish Aerospace (nowBAE Systems). These two entities were merged in 1994 to become the Raytheon Aircraft Company. In the first quarter of 2007 Raytheon sold its aircraft operations, which subsequently operated asHawker Beechcraft, and since 2014 have been units ofTextron Aviation. The product line of Raytheon's aircraft subsidiary includedbusiness jets such as theHawker 800XP andHawker 4000, theBeechjet 400A, and thePremier I; the popularKing Air series of twin turboprops; and piston-engine aircraft such as theBonanza. Its special-mission aircraft included the single-turbopropT-6A Texan II, which theUnited States Air Force andUnited States Navy had chosen as their primarytraining aircraft.
In 1991, during thePersian Gulf War, Raytheon'sPatriot missile received great international exposure, resulting in a substantial increase in sales for the company outside the United States. In an effort to establish leadership in the defense electronics business, Raytheon purchased in quick succession Dallas-basedE-Systems (1995);Chrysler Corporation's defense electronics and aircraft-modification businesses, which had previously acquired companies such as Electrospace systems (1996) (portions of these businesses were later sold toL-3 Communications), and the defense unit ofTexas Instruments,Defense Systems & Electronics Group (1997). Also in 1997, Raytheon acquired the aerospace and defense business ofHughes Aircraft Company fromHughes Electronics Corporation, a subsidiary ofGeneral Motors, which included a number of product lines previously purchased by Hughes Electronics, including the formerGeneral Dynamics missile business (Pomona facility), the defense portion ofDelco Electronics (Delco Systems Operations), andMagnavox Electronic Systems.[citation needed]
Raytheon also divested itself of several nondefense businesses in the 1990s, includingAmana Refrigeration, Raytheon Commercial Laundry (purchased byBain Capital'sAlliance Laundry Systems), and Seismograph Service Ltd (sold toSchlumberger-Geco-Prakla). On October 12, 1999, Raytheon exited thepersonal rapid transit (PRT) business as it terminated itsPRT 2000[17] system due to the high cost of development and the lack of interest.[18]
During theSeptember 11 attacks of 2001, Raytheon had an office in the South Tower of theWorld Trade Center on the 91st floor. Their office, being 6 floors above whereUnited Airlines Flight 175 collided with the building, was spared from the immediate collision, but was utterly destroyed in the subsequent collapse of the South Tower.[19]
In November 2007, Raytheon purchasedSarcos for an undisclosed sum, seeking to expand into robotics research and production.[20]
In September 2009, Raytheon purchasedBolt Beranek and Newman Inc. as a wholly owned subsidiary.
In December 2010,Applied Signal Technology agreed to be acquired by Raytheon for $490 million.[21]
In October 2014, Raytheon beat rivalsLockheed Martin andNorthrop Grumman for a contract to build 3DELRR, a next-generation long-range radar system, for the USAF worth an estimated $1 billion.[22]
The contract award was immediately protested by Raytheon's competitors, Lockheed Martin and Northrop Grumman. After re-evaluating the bids following the protests,[23] the USAF decided to delay awarding the 3DELRR EMD contract until 2017 and was to issue an amended solicitation at the end of July 2016.[24] In 2017 the USAF again awarded the contract to Raytheon.[25]
In May 2015, Raytheon acquired cybersecurity firm Websense, Inc. from Vista Equity Partners for $1.9 billion[26] and combined it with RCP, formerly part of its IIS segment to form Raytheon|Websense.[27] In October 2015, Raytheon|Websense acquired Foreground Security for $62 million.[28] In January 2016, Raytheon|Websense acquired the firewall provider Stonesoft fromIntel Security for an undisclosed amount and renamed itself to Forcepoint.[29]
In July 2016, Poland's Defence MinisterAntoni Macierewicz planned to sign a letter of intent with Raytheon for a $5.6 billion deal to upgrade its Patriot missile-defence shield.[30][31]
In 2017,Saudi Arabia signed business deals worth billions of dollars with multiple American companies, including Raytheon.[32][33]
In July 2019, Qatar's Ministry of Defense committed to acquire Raytheon'sNASAM and Patriot missile defense systems.[34] The company would later be fined for paying bribes to a Qatari officials to influence defense purchases.[35]
In February 2020, Raytheon completed the first radar antenna array for the US Army's new missile defense radar, known as the Lower Tier Air and Missile Defense Sensor (LTAMDS), to replace the service's Patriot air and missile defense system sensor.[36]
In April 2020, the company merged withUnited Technologies Corporation to formRaytheon Technologies.[3] The merged company is headquartered in Arlington, Virginia rather than UTC's base inFarmington, Connecticut.[37]
Raytheon wassanctioned by the Chinese government in October 2020,[38] and February 2023 due to arm sales to Taiwan.[39]
In July 2023, Raytheon Technologies renamed themselves toRTX Corporation and merged theRaytheon Intelligence & Space andRaytheon Missiles & Defense business segments to form a newRaytheon business segment.[40]
In August 2024, RTX agreed to pay a $200 million fine for the unauthorized export of defense technology to China, Russia, Iran, and elsewhere, to settle more than 750 violations of theArms Export Control Act and theInternational Traffic in Arms Regulations, or ITAR. The company was allowed to pay only half the fine to the government and to put half of the fine toward “remedial compliance measures to strengthen RTX’s compliance program.”[41] In October 2024, RTX agreed to pay nearly $1 billion to settle allegations of defrauding the U.S. Defense Department and bribing a Qatari military official. Company officials said the misconduct mostly occurred before 2020 and pledged to improve its compliance programs.[35]
For the fiscal year 2017, Raytheon reported earnings of US$2.024 billion, with an annual revenue of US$25.348 billion, an increase of 5.1% over the previous fiscal cycle. Raytheon's shares traded at over $164 per share, and its market capitalization was valued at over US$51.7 billion in November 2018.[42]
| Year | Revenue in mil. US$ | Net income in mil. US$ | Total assets in mil. US$ | Price per share in US$ | Employees |
|---|---|---|---|---|---|
| 2005 | 18,491 | 871 | 24,381 | 27.58 | |
| 2006 | 19,707 | 1,283 | 25,491 | 33.92 | |
| 2007 | 21,301 | 2,578 | 23,281 | 42.79 | |
| 2008 | 23,174 | 1,672 | 23,134 | 44.40 | |
| 2009 | 24,881 | 1,935 | 23,607 | 35.95 | |
| 2010 | 25,150 | 1,840 | 24,422 | 40.55 | |
| 2011 | 24,791 | 1,866 | 25,854 | 38.75 | |
| 2012 | 24,414 | 1,888 | 26,686 | 46.38 | |
| 2013 | 23,706 | 1,996 | 25,967 | 61.96 | 63,000 |
| 2014 | 22,826 | 2,244 | 27,716 | 89.54 | 61,000 |
| 2015 | 23,321 | 2,110 | 29,281 | 102.58 | 61,000 |
| 2016 | 24,124 | 2,244 | 30,238 | 128.50 | 63,000 |
| 2017 | 25,348 | 2,024 | 30,860 | 164.75 | 64,000 |
Raytheon is composed of five major business divisions:[43]
Raytheon's businesses are supported by several dedicated international operations including: Raytheon Australia; Raytheon Canada Limited; operations in Japan; Raytheon Microelectronics in Spain; Raytheon UK (formerly Raytheon Systems Limited); andThalesRaytheonSystems, France.
In recent years, Raytheon has expanded into other fields while redefining some of its core business activities. Raytheon has identified five key 'Strategic Business Areas' where it is focusing its expertise and resources:
In March 2014, Thomas Kennedy was named CEO of Raytheon Company.[44] Kennedy succeededWilliam H. Swanson, who was CEO since 2003. Swanson remained asChairman through September 2014 when Kennedy became chairman as well as CEO.[45] Other current and former members of theboard of directors of Raytheon were:Vernon Clark,James E. Cartwright,John Deutch,Stephen J. Hadley, George R. Oliver, Frederic Poses, Michael Ruettgers, Ronald Skates, William Spivey, and Linda Stuntz.[46]
As of December 2014, according to filed reports, the top ten institutional shareholders of Raytheon areWellington Management Company,Vanguard Group,State Street Corporation, Barrow, Hanley, Mewhinney & Strauss,BlackRock Institutional Trust Company, BlackRock Advisors,Bank of America,Bank of New York Mellon,Deutsche Bank andMacquarie Group.[47]
Raytheon provides electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems; as well as a broad range of mission support services.
Raytheon's electronics and defense-systems units produce air-, sea-, and land-launched missiles, aircraft radar systems, weapons sights and targeting systems, communication and battle-management systems, and satellite components.
Raytheon is a developer and manufacturer ofradars (includingAESAs), electro-optical sensors, and other advanced electronics systems for airborne, naval and ground based military applications. Examples include:
Raytheon, often in conjunction withBoeing, Lockheed Martin or Northrop Grumman, is also heavily involved in the satellite sensor business. Much of its Space and Airborne Systems division inEl Segundo,CA is devoted to this, a business it inherited fromHughes. Examples of programs include:
As part of the company's growinghomeland security business and strategic focus, Raytheon has teamed with other contractors to develop an Advance Spectroscopic Portal (ASP) to allow border officials to view and identifyradioactive materials in vehicles andshipping containers more effectively.[50]
Raytheon also manufacturessemiconductors for the electronics industry in sites in the US and UK. In the late 20th century it produced a wide range ofintegrated circuits and other components, but as of 2003 its US semiconductor business specializes ingallium arsenide (GaAs) components for radio communications as well asinfrared detectors. It is also making efforts to developgallium nitride (GaN) components for next-generation radars and radios. The UK arm specialized in CMOS onsilicon carbide (SiC) development and foundry work but is no longer taking on new orders, having been on the premises for 57 years.
In the framework ofGround-Based Midcourse Defense, Raytheon is developing aGround Based Interceptor (GBI) that includes a booster missile and akineticExoatmospheric Kill Vehicle (EKV), along with several key radar components, such as theSea-Based X-Band Radar (SBX) and theUpgraded Early Warning Radar (UEWR).
Raytheon is a developer of missiles and related missile defense systems. These include:
Two lawsuits were filed against a Raytheon Company plant inSt. Petersburg, Florida, due to concern with health risks, property values, and contamination in April 2008.[52] Raytheon was given until the end of the month to independently test whether or not the groundwater that originated from its area was contaminated. According to theFlorida Department of Environmental Protection (DEP), the groundwater containedcarcinogenic contaminants, includingtrichloroethylene,1,4-dioxane, andvinyl chloride.[53] The DEP also reported that the clouds contained other toxins, such as lead andtoluene.[52]
In 1995, Raytheon acquired Dallas-based E-Systems, including a site in St. Petersburg, Florida, In November 1991, prior to Raytheon's acquisition, contamination had been discovered at the E-Systems site. Soil and groundwater had been contaminated with the volatile organic compounds trichloroethylene and 1,4-Dioxane. In 2005, groundwater monitoring indicated polluted groundwater was moving into areas outside the site.[54] According to DEP documentation, Raytheon has tested wells on its site since 1996 but had not delivered a final report; therefore, it was given a deadline on May 31, 2008, to investigate its groundwater.[52] Contamination in the area has not affected anyone's drinking water supply or health, yet due to negative local media coverage lawsuits are being filed with claims against Raytheon citing decreases in property values.[55]
In another case, Raytheon was ordered by theEnvironmental Protection Agency (EPA) to treat groundwater at the Tucson Plant (acquired during the merger with Hughes) in Arizona since Raytheon used and disposed metals,chlorinated solvents, and other substances at the plant since 1951.[56] The EPA further required the installation and operation of an oxidation process system to treat the solvents and make the water safe to drink.[56]
On 9 August 2006, The Stream Contact Centre in Derry, Northern Ireland, which had a contract with Raytheon at the time, wasattacked by protesters. They destroyed the computers, documents, and mainframe of the office, and proceeded to occupy it for eight hours prior to their arrest.
The activists were charged with criminal damage and affray under terrorism laws.[57] The trial of six of the accused began May 19, 2008, in the Laganside Courts in Belfast. Colm Bryce, Gary Donnelly, Kieran Gallagher, Michael Gallagher, Sean Heaton, Jimmy Kelly, Paddy McDaid and Eamonn O'Donnell were acquitted of all charges on 11 June, with Eamonn McCann found guilty of the theft of two computer discs.
By 2013, the company was also awarded the Goal Achievement Award by the EPA for excellence in greenhouse gas management.[58]
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42°24′20.1″N71°16′57.8″W / 42.405583°N 71.282722°W /42.405583; -71.282722
