The order book at Raytheon could shrink by $1.75 billion according to an SEC filing by the company. Raytheon had been counting on a $900 million order from an unnamed company for its new Hawker Horizon bizjet. Market conditions and developmental delays mean the order “could be restructured or canceled,” the Associated Press reported the filing as saying. Another $850 million order from Flight Options LLC is also in jeopardy. Raytheon may take over the struggling fractional-ownership company. Meanwhile, at its home base in Wichita, employees are trying to stop the company from contracting out their work to outside companies. The Wichita Eagle reported that the workers planned a rally called “Stand for Wichita’s Jobs” on Saturday. The rally was to take dead aim at Raytheon’s recently announced proposals to send parts and subassembly work elsewhere, including Mexico. By 2006, the company plans to do only final assembly in Wichita. Such a move could eliminate 3,000 Wichita jobs, according to union officials. They claim the jobs will be lost forever regardless of an improvement in market conditions.
Raytheon Reduces Order Backlog
Key Takeaways:
- Raytheon's order book could shrink by $1.75 billion due to potential cancellations or restructuring of a $900 million Hawker Horizon bizjet order and an $850 million order from Flight Options LLC.
- The company plans to outsource parts and subassembly work from its Wichita facility, intending to do only final assembly there by 2006.
- This outsourcing strategy could eliminate 3,000 jobs in Wichita, prompting employees to organize a rally ("Stand for Wichita's Jobs") to protest the proposals.
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