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The Raytheon Company is a major U.S. defense contractor and industrial corporation with core manufacturing concentrations in weapons and military and commercial electronics. It was previously involved in corporate and special-mission aircraft until early 2007. Raytheon is the world's largest producer of guided missiles.[3]

Raytheon
Public
Traded as
Industry Aerospace and defense
Founded Cambridge, Massachusetts, United States (1922)
Founder Vannevar Bush
Laurence K. Marshall
Charles G. Smith
Headquarters Waltham, Massachusetts,
United States
Area served
Worldwide
Key people
Thomas A. Kennedy[1]
(Chairman and CEO)
Revenue Increase US$25.348 billion (2017)[2]
Increase US$3.318 billion (2017)[2]
Decrease US$2.024 billion (2017)[2]
Total assets Increase US$30.860 billion (2017)[2]
Total equity Decrease US$9.963 billion (2017)[2]
Number of employees
~64,000 (2017)[2]
Website raytheon.com

Established in 1922, the company reincorporated in 1928 and adopted its present name in 1959. As of 2014 the company had around 63,000 employees worldwide[4] and annual revenues of approximately US$25 billion. 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.[5] As of 2015, it is the third largest defense contractor in the United States by defense revenue.[6]

In 2003, Raytheon's headquarters moved from Lexington, Massachusetts, to Waltham, Massachusetts.[7] The company had previously been headquartered in Cambridge, Massachusetts, from 1922 to 1928, Newton, Massachusetts, from 1928 to 1941, Waltham from 1941 to 1961 and Lexington from 1961 to 2003.

Contents

HistoryEdit

 
An early Raytheon tube box
 
A Raytheon Tomahawk Block IV cruise missile during a U.S. Navy flight test at NAWS China Lake, California (November 10, 2002)

Early yearsEdit

In 1922, two former Tufts University School of Engineering roommates Laurence K. Marshall and Vannevar Bush, along with scientist Charles G. Smith, founded the American Appliance Company in Cambridge, Massachusetts.[8] Its focus, which was originally on new refrigeration technology, soon shifted to electronics. The company's first product was a gaseous (helium) rectifier that was based on Charles Smith's earlier astronomical research of the star Zeta Puppis.[9] The electron tube was christened with the name Raytheon ("light of/from the gods"[10]) and was used in a battery eliminator, a type of radio-receiver power supply that plugged into the power grid in place of large batteries. This made it possible to convert household alternating current to direct 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 of transformers, power equipment, and electronic auto parts.[citation needed]

During World War IIEdit

Early in World War II, physicists in the United Kingdom invented the magnetron, a specialized microwave-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 and mass-produce the magnetron for ground-based, airborne, and shipborne radar systems, and, with support from the Massachusetts Institute of Technology's Radiation Laboratory (recently formed to investigate microwave radar), Raytheon received a contract to build the devices. Within a few months of being awarded the contract, Raytheon had already begun to mass manufacture magnetron tubes for use in radar sets and then complete radar systems. At war's end in 1945 the company was responsible for about 80 percent of all magnetrons manufactured. During the war Raytheon also pioneered the production of shipboard radar systems, particularly for submarine detection. Raytheon ranked 71st among United States corporations in the value of World War II military production contracts.[11]

Raytheon's research on the magnetron tube revealed the potential of microwaves to cook food. In 1945, Raytheon's Percy Spencer invented the microwave oven by discovering that the magnetron could rapidly heat food. In 1947, the company demonstrated the Radarange microwave oven for commercial use.

After World War IIEdit

In 1945, 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 first guidance system for a missile that could intercept a flying target. In 1948, Raytheon began to manufacture guided missiles. In 1950, its Lark missile became the first such weapon to destroy a target aircraft in flight. Raytheon then received military contracts to develop the air-to-air Sparrow and ground-to-air Hawk missiles—projects that received impetus from the Korean War. In later decades, it remained a major producer of missiles, among them the Patriot antimissile missile and the air-to-air Phoenix missile. In 1959, Raytheon acquired the marine electronics company Apelco Applied Electronics, which significantly increased its strength in commercial marine navigation and radio gear, as well as less-expensive Japanese suppliers of products such as marine/weather band radios and direction-finding gear. In the same year, it changed its name to Raytheon Company.

During the post-war years, Raytheon also made generally low- to medium-powered radio and television transmitters and related equipment for the commercial market, but the high-powered market was solidly in the hands of larger, better financed competitors such as Continental Electronics, General Electric and Radio Corporation of America.

In the 1950s, Raytheon began manufacturing transistors, including the CK722, priced and marketed to hobbyists.

In 1961, the British electronics company A.C. Cossor merged with Raytheon, following its sale by Philips. The new Company's name was Raytheon Cossor. The Cossor side of the organisation is still current in the Raytheon group As of 2010.

In 1965, it acquired Amana Refrigeration, Inc., a manufacturer of refrigerators and air conditioners. Using the Amana brand name and its distribution channels, Raytheon began selling the first countertop household microwave 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 of D.C. Heath and Company, marketing an influential physics textbook developed by the Physical Science Study Committee.

1980sEdit

In 1980, Raytheon acquired Beech Aircraft Corporation, a leading manufacturer of general aviation aircraft founded in 1932 by Walter 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 of British Aerospace (now BAE 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 as Hawker Beechcraft, and since 2014 have been units of Textron Aviation. The product line of Raytheon's aircraft subsidiary included business jets such as the Hawker 800XP and Hawker 4000, the Beechjet 400A, and the Premier I; the popular King Air series of twin turboprops; and piston-engine aircraft such as the Bonanza. Its special-mission aircraft included the single-turboprop T-6A Texan II, which the United States Air Force and United States Navy had chosen as their primary training aircraft.

1990sEdit

In 1991, during the Persian Gulf War, Raytheon's Patriot 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-based E-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 to L-3 Communications), and the defense unit of Texas InstrumentsDefense Systems & Electronics Group (1997). Also in 1997, Raytheon acquired the aerospace and defense business of Hughes Aircraft Company from Hughes Electronics Corporation—a subsidiary of General Motors, which included a number of product lines previously purchased by Hughes Electronics including the former General Dynamics missile business (Pomona facility), the defense portion of Delco Electronics (Delco Systems Operations), and Magnavox Electronic Systems.[citation needed]

Raytheon also divested itself of several nondefense businesses in the 1990s, including Amana Refrigeration and Seismograph Service Ltd (sold to Schlumberger-Geco-Prakla). On October 12, 1999 Raytheon exited the personal rapid transit (PRT) business as it terminated its PRT 2000[12] system due to high-cost of development and lack of interest.[13]

2000sEdit

In November 2007, Raytheon purchased Sarcos for an undisclosed sum, seeking to expand into robotics research and production.[14]

In September 2009, Raytheon entered into an agreement to acquire BBN Technologies.[15] The acquisition was completed on October 29, 2009.[16]

In December 2010, Applied Signal Technology agreed to be acquired by Raytheon for $490 million.[17]

2010sEdit

In October 2014, Raytheon beat rivals Lockheed Martin and Northrop Grumman for a contract to build 3DELRR, a next-generation long-range radar system, for the US Air Force worth an estimated $1 billion.[18] This contract award was immediately protested by Raytheon's competitors, Lockheed Martin and Northrop Grumman. After re-evaluating the bids following these protests,[19] the US Air Force decided to delay awarding the 3DELRR EMD contract until 2017, and was to issue an amended solicitation at the end of July 2016.[20]

In July 2016, Poland's Defence Minister Antoni Macierewicz planned to sign a letter of intent with Raytheon for a $5.6 billion deal to upgrade its Patriot missile-defence shield.[21][22]

In 2017, Saudi Arabia signed business deals worth billions of dollars with multiple American companies, including Raytheon.[23][24]

Company structureEdit

BusinessesEdit

Raytheon is composed of five major business divisions:

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); and ThalesRaytheonSystems, France.

Strategic Business AreasEdit

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:

LeadershipEdit

in March 2014, Thomas Kennedy was named CEO of Raytheon Company.[27] Kennedy succeeded William H. Swanson, who was CEO since 2003. Swanson remained as Chairman and Thomas A. Kennedy continues to sit on the Board. Other members of the board 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.[citation needed]

InternationalEdit

In addition to its US domestic facilities, Raytheon has offices in countries worldwide, including Australia, Belgium, Brazil, Canada, Chile, China, Czech Republic, Egypt, France, Germany, Greece, India, Israel, Italy, Japan, Kuwait, Malaysia, Marshall Islands, New Zealand, Norway, Republic of Korea, Singapore, Saudi Arabia, Spain, Sweden, Taiwan, Thailand, Turkey, United Arab Emirates, and the United Kingdom.

OwnershipEdit

As of December 2014, according to filed reports, the top ten institutional shareholders of Raytheon are Wellington 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 and Macquarie Group.[28]

Products and servicesEdit

OverviewEdit

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. View an alphabetical listing of Raytheon's major products and services.See Raytheon products for products manufactured and sold by Raytheon Company

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.

Air traffic control systemsEdit

  • FIRSTplus Air Traffic Control Simulator
  • AutoTrac III ATM System
  • STARS

Radars and sensorsEdit

 
A PAVE PAWS Early Warning Radar System built by Raytheon, based at Clear AFS, Alaska

Raytheon is a 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:

Satellite sensorsEdit

Raytheon, often 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:

  • Space Tracking and Surveillance System (STSS), being developed for the Ballistic Missile Defense. Raytheon is building the sensor payload.[citation needed] Additionally, the El Segundo site is the company center of excellence for the development and production of laser products.
  • Raytheon company's Navy Multiband Terminal (NMT) is the first advanced, next-generation satellite communications (SATCOM) system to successfully log on to and communicate with the U.S. government's Milstar SATCOM system using low and medium data rate waveforms. The system provides naval commanders and sailors with greater data capacity, as well as improved protection against enemy intercept and jamming.
  • Visible Infrared Imaging Radiometer Suite (VIIRS), was developed by Raytheon Space and Airborne Sensors and is currently in operation on the Suomi NPP satellite. Future deliveries of VIIRS will fly onboard JPSS to continue the operational space based climate and weather sensing legacy of the MODIS sensors.[29]

CommunicationsEdit

Radioactive materials detection systemEdit

As part of the company's growing homeland 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 identify radioactive materials in vehicles and shipping containers more effectively.[32]

SemiconductorsEdit

Raytheon also manufactures semiconductors for the electronics industry in sites in the US and UK. In the late 20th century it produced a wide range of integrated circuits and other components, but as of 2003 its US semiconductor business specializes in gallium arsenide (GaAs) components for radio communications as well as infrared detectors. It is also making efforts to develop gallium nitride (GaN) components for next-generation radars and radios. The UK arm specialized in CMOS on silicon carbide (SiC) development and foundry work but is no longer taking on new orders, having been on the premises for 57 years.

Missile defense systemsEdit

In the framework of Ground-Based Midcourse Defense, Raytheon is developing a Ground Based Interceptor (GBI) that includes a booster missile and a kinetic Exoatmospheric Kill Vehicle (EKV), along with several key radar components, such as the Sea-Based X-Band Radar (SBX) and the Upgraded Early Warning Radar (UEWR).

MissilesEdit

 
Raytheon missiles on display at the Paris Air Show, 2005

Raytheon is a developer of missiles and related missile defense systems. These include:

Hi-tech simulatorsEdit

In a jointly managed project with Hughes Aircraft Co., Raytheon developed the Air Warfare Simulation (AWSIM2), currently used by the USAF for battle staff training at simulation centers worldwide.

Raytheon also produces and runs the ABACUS (Advanced BAttlespace CompUter Simulation) or Higher Formation Trainer (HFT) for training HQs from small specialist units up to corps level.

Training Services and Learning OutsourcingEdit

Raytheon Professional Services (RPS) is a global leader[citation needed] in training services and learning outsourcing for over 75 years.[citation needed] Clients are offered training tailored to their needs. The scope of each contract can vary from short-term training initiatives and projects to multi-year outsourcing engagements for some or all of a client’s training function. Services include: (1) Performance Consulting & Learning Strategy Development, (2) Training Design, Development & Delivery, (3) Learning Technologies and (4)Training Administration

Raytheon SixSigma

Raytheon Six Sigma is the company's disciplined, knowledge-based approach designed to increase productivity, grow the business, enhance customer satisfaction and build a customer culture that embraces all of these goals.[33] Daniel Burnham brought Six Sigma to Raytheon from AlliedSignal in 1998. This internal service provides six steps that guide projects to completion, the six steps being: visualize, commit, prioritize, characterize, improve, and achieve. Raytheon mentions in its annual reports the benefits it has enjoyed through SixSigma. It has gained USD $3.8 billion in financial benefit and has set a common language and culture across the company.[34]

Environmental recordEdit

Two lawsuits were filed against a Raytheon Company plant in St. Petersburg, Florida, due to concern with health risks, property values, and contamination in April 2008.[35] 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 the Florida Department of Environmental Protection (DEP), the groundwater contained carcinogenic contaminants, including trichloroethylene, 1,4-dioxane, and vinyl chloride.[36] The DEP also reported that the clouds contained other toxins, such as lead and toluene.[35]

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.[37] 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.[35] 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.[38]

In another case, Raytheon was ordered by the Environmental 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.[39] The EPA further required the installation and operation of an oxidation process system to treat the solvents and make the water safe to drink.[39]

On 9 August 2006, The Stream Contact Centre in Derry, Northern Ireland, which had a contract with Raytheon at the time, was attacked 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. 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.[7]

Workplace diversityEdit

  • In 2005, Raytheon adopted equal employment opportunity policies regarding transgender and transsexual employees.[40]
  • On October 26, 2006, Raytheon was recognized by U.S. Secretary of Labor Elaine Chao as a recipient of the 2006 New Freedom Initiative (NFI) Award for the company’s commitment to recruit, train, hire and promote individuals with disabilities.

AdvocacyEdit

  • Raytheon is a leading member of the U.S. Global Leadership Coalition, a Washington D.C.-based coalition of over 400 major companies and NGOs that advocates for a larger International Affairs Budget, which funds American diplomatic, humanitarian, and development efforts abroad.[41]

See alsoEdit

ReferencesEdit

  1. ^ "Archived copy" (PDF). Archived from the original (PDF) on 2015-01-04. Retrieved 2015-01-04. 
  2. ^ a b c d e f "Raytheon Company 2017 Annual Report (Form 10-K)". sec.gov. United States Securities and Exchange Commission. January 2018. 
  3. ^ Missile maker hopes to diversify, create technology for peacetime Archived 2012-02-11 at the Wayback Machine.. Sazhightechconnect.com. Retrieved on 2012-02-04.
  4. ^ Raytheon Company : Investor Relations : FAQs. Investor.raytheon.com. Retrieved on 2014-06-25.
  5. ^ "Defense News Top 100". Defense News Research. 2012. Retrieved 2013-01-01. 
  6. ^ "Top 100 for 2015." Defense News. 2015. Retrieved on 2016-07-26.
  7. ^ New Raytheon Headquarters to Open October 27 in Waltham, Mass. Archived 2012-03-14 at the Wayback Machine. October 22, 2003 Raytheon.
  8. ^ Raytheon Australia. History. Archived 2007-08-30 at the Wayback Machine. Raytheon Marketing Material.
  9. ^ Otto J. Scott, The Creative Ordeal, (New York, Atheneum, 1974),16–32
  10. ^ Raytheon Company: The Early Days. Raytheon.com. September 30, 2007. Retrieved on 2012-02-04. Archived April 15, 2009, at the Wayback Machine.
  11. ^ Peck, Merton J. & Scherer, Frederic M. The Weapons Acquisition Process: An Economic Analysis (1962) Harvard Business School p.619
  12. ^ PRT 2000 System Concept, "Design and Commercialization of the PRT 2000 Personal Rapid Transit System" by S. J. Gluck, R. Tauber and B. Schupp. University of Washington Web Server.
  13. ^ Raytheon PRT Prospects Dim but not Doomed. Peter Samuel. October, 1999.
  14. ^ Jump up ^ Staff (2007-11-14). "Business Briefs". The Lowell Sun (MediaNews Group).
  15. ^ Raytheon Announces Agreement to Purchase BBN Technologies Archived 2012-05-11 at the Wayback Machine. WALTHAM, Mass., September 1, 2009. PRNewswire.
  16. ^ Raytheon Completes Acquisition of BBN Technologies MCKINNEY, Texas, October 26, 2009. PRNewswire.
  17. ^ [1].
  18. ^ Raytheon wins deal for next-generation U.S. Air Force radar. Reuters, 7 October 2014
  19. ^ Mehta, Aaron (22 January 2015). "US Air Force to Reevaluate 3DELRR Award". Retrieved 7 August 2017. 
  20. ^ USAF delays awarding 3DELRR EMD contract until 2017. Janes, 15 July 2016
  21. ^ "Rocketing around the world". The Economist. ISSN 0013-0613. Retrieved 2016-07-23. 
  22. ^ "Poland moves towards multi-billion-euro Patriot missile deal". Retrieved 2016-07-23. 
  23. ^ "Saudi Arabia agrees to buy $7 billion in precision munitions from U.S. firms: sources". Reuters. November 23, 2017.
  24. ^ "Raytheon Arm Wins $302M Deal to Boost Saudi Arabia's Defense". Nasdaq.com. December 13, 2017.
  25. ^ Raytheon Company (10 March 2010). "Raytheon Announces Executive Appointments". 
  26. ^ Forcepoint. "Raytheon|Websense is now Forcepoint™". www.prnewswire.com. Retrieved 2016-02-19. 
  27. ^ Communications, Raytheon Corporate. "Raytheon News Release Archive". 
  28. ^ "Raytheon Company (RTN)". Yahoo! Finance. May 1, 2015. 
  29. ^ Raytheon Corporate Communications. "Raytheon". 
  30. ^ Raytheon Announces Revolutionary New 'Cockpit' for Unmanned Aircraft – an Industry First Archived 2009-08-19 at the Wayback Machine. Falls Church, Virginia, October 31, 2006. PR Newswire.
  31. ^ Singel, Ryan (December 19, 2007). "FBI E-Mail Shows Rift Over Warrantless Phone Record Grabs". Wired. Archived from the original on June 27, 2018. The FBI uses a Raytheon-developed tool known as the Digital Multimedia Watchdog to record and store phone calls and internet communications between informants and targets of an investigation. That tool can "collect, process and store large amounts of multimedia data, including voice, fax, data and video." 
  32. ^ "Raytheon targets nuclear smuggling: Firm sees profit in homeland security". BostonGlobe. 2006. Retrieved 2006-11-07. [dead link]
  33. ^ Communications, Raytheon Corporate. "Raytheon News Release Archive". Raytheon News Release Archive. Retrieved 2017-10-04. 
  34. ^ "Raytheon Six Sigma". www.isixsigma.com. Retrieved 2017-10-04. 
  35. ^ a b c "Is Raytheon site poisoning St. Petersburg neighborhood?". 2008-04-24. Archived from the original on 2008-04-23. Retrieved 2008-05-06. 
  36. ^ "Raytheon's Florida Neighbors Sue Over Water Contamination". 2008-05-05. Archived from the original on 2008-05-10. Retrieved 2008-05-06. 
  37. ^ "Raytheon Site Summary". Florida Department of Environmental Protection. Archived from the original on 2008-10-15. 
  38. ^ "Florida DEP". Florida Department of Environmental Protection. Archived from the original on 2008-10-15. 
  39. ^ a b "Environmental Protection Agency". July 13, 2007. Retrieved May 6, 2008. 
  40. ^ Raytheon (2005). [2] Archived 2007-03-19 at the Wayback Machine.. Human Rights Campaign.
  41. ^ U.S. Global Leadership Coalition, Global Trust members. Usglc.org. Retrieved on 2012-02-04.

External linksEdit