Raytheon Co. posted a 60% fall in its second-quarter income, explaining that the dip has been a resultant of the cancellation of a business contract and the tumbling of defense contractor’s stance.
The total earnings reported in the Company in the second quarter dropped 57% to $208 million i. e., 55 cents a share, from $489 million, or $1.23, for the same period in the preceding year.
The Company lost the contract from the UK government, as the latter said that it doesn’t have any confidence in the Company.
The agreement saw Raytheon offering procedures to keep an eye on border security operations.
The UK Government revealed last week that Company lagged more than 12 months in preparing for the services to be provided.
“What we have delivered works and provides actionable information for the customer. We are in litigation”, said Chief Financial Officer, Dave Wajsgras.
The UK Government first indicated of cancelling the agreement in November 2007. The agreement, worth $1.3 billion, obliged the Company to shun its 2010 sales estimates.
The Company has reduced the forecasts to $26.1 billion, from $24.9 billion in 2009.
The Company reported a 2.5% decline in the second quarter.