is a major American defense contractor
and industrial corporation with core manufacturing
concentrations in defense systems
and defense 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.
Established in 1922, the company reincorporated in 1928 and adopted its present name in 1959. The company has around 73,000 employees worldwide and annual revenues of approximately US$20 billion. More than 90 percent of Raytheon's revenues were obtained from defense contracts and, as of 2007, it was the fifth largest defense contractor in the world, and is the fourth largest defense contractor in the United States by revenue.
Raytheon Headquarters was moved from Lexington, Massachusetts to Waltham, Massachusetts on October 27, 2003. The company was previously headquartered in Waltham from 1941 until it opened its then Lexington headquarters in 1961.
In 1922, two former engineering college roommates Laurence K. Marshall and Vannevar Bush
, along with scientist Charles G. Smith, founded the American Appliance Company in Cambridge, Massachusetts
. Its focus, which was originally on new refrigeration
technology, soon shifted to electronics
. The company's first product was a gaseous
that was based on Charles Smith's earlier astronomical
research of the star Zeta Puppis
. The electron tube was christened with the name Raytheon
("light of/from the gods") 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 great 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 previous name, Raytheon Manufacturing Company. In 1933 it diversified by acquiring Acme-Delta Company, a producer of transformers, power equipment, and electronic auto parts. By the 1930s it had already grown to become one of the world's largest vacuum tube manufacturing companies.
During WW II
Early in World War II
invented the magnetron
, a specialized microwave-generating electron tube that markedly improved the capability of radar
to detect enemy planes
. American companies were then sought by the U.S. 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'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 the WW II
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 Apelco-Applied Electronics, which significantly increased its strength in commercial marine electronics. In the same year, it changed its name to Raytheon Company
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 Raytheon began manufacturing transistors, including the CK722, priced and marketed to hobbyists.
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 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 is now operating as Hawker Beechcraft
. The product line of Raytheon's aircraft subsidiary included business jets
such as the Hawker 800XP
, the Beechjet 400A
, and the Premier I
; the popular King Air
series of twin turboprops; and single-engine piston aircraft such as the Beech Bonanza
. Its special-mission aircraft included the single-turboprop T-6A Texan II
, which had been chosen to be the primary training aircraft
for the U.S. Air Force
and U.S. Navy
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 (1996), and the defense unit of Texas Instruments
- Defense 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, the defense portion of Delco Electronics
(Delco Systems Operations), and Magnavox Electronic Systems
Raytheon also divested itself of several nondefense businesses in the 1990s, including Amana Refrigeration. On October 12, 1999 Raytheon exited the personal rapid transit (PRT) business as it terminated its PRT 2000 system due to high-cost of development and lack of interest. The PRT 2000 prototype now sits idle at their Marlboro, Massachusetts facility.
Raytheon is composed of six major business divisions:
- Integrated Defense Systems — based in Tewksbury, Massachusetts; Dan Smith, President
- Intelligence and Information Systems — based in Garland, Texas; Mike Keebaugh, President
- Missile Systems — based in Tucson, Arizona; Taylor W. Lawrence, President
- Network Centric Systems — based in McKinney, Texas; Colin Schottlaender, President
- Raytheon Technical Services Company LLC — based in Reston, Virginia; Rick Yuse, President
- Space and Airborne Systems — based in El Segundo, California; Jon Jones, President
Raytheon’s businesses are supported by several dedicated international operations including: Raytheon Australia (Managing Director, Ron Fisher); Raytheon Canada Limited; operations in Japan; Raytheon Microelectronics in Spain; Raytheon System Limited in the UK; and ThalesRaytheonSystems, France.
Strategic Business Areas
In recent years, Raytheon has expanded into other fields while redefining some of its core business activities. Raytheon has identified four key 'Strategic Business Areas' where it is focusing its expertise and resources, including:
William H. Swanson
is the Chairman
. Other members of the board of directors
of Raytheon are: Barbara Barrett
, Vernon Clark
, Ferdinand Colloredo-Mansfeld, John Deutch
, Thomas Everhart
, Frederic Poses, Warren Rudman
, Michael Ruettgers, Ronald Skates, William Spivey, and Linda Stuntz.
In addition to its US domestic facilities, Raytheon has offices in countries worldwide, including Australia
, Czech Republic
, Marshall Islands
, Republic of Korea
, Saudi Arabia
, United Arab Emirates
, and the United Kingdom
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. Raytheon is also a leader in marine electronics, manufacturing shipboard radar and sonar systems, autopilots, depth finders, and Global Positioning System
Air Traffic Control Systems
FIRSTplus™ Air Traffic Control Simulator
AutoTrac III ATM System
Radars and sensors
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:
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
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. 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.
Radioactive materials detection system
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 peer into vehicles and containers to identify radioactive
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.
Missile defense systems
In the framework of Ground-Based Midcourse Defense
, Raytheon is developing a Ground-Based Interceptor
(GBI) which 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 Radars
Raytheon is a developer of missiles and related missile defense systems. These include:
Raytheon also produces and runs the ABACUS (Advanced BAttlefield CompUter Simulation
) or Higher Formation Trainer (HFT) for training HQs from small specialist units up to corps level.
Training Services and Learning Outsourcing
Raytheon Professional Services (RPS) is a global leader in training services and learning outsourcing for over 75 years. Clients are offered a full range of proven training capabilities on a global scale, tailored to client’s unique needs. The scope of each solution 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
As the vast majority of Raytheon's revenues have been obtained from defense contracts, there has been a necessarily tight relationship of cooperation between itself and the U.S. Department of Defense
and other U.S. government departments and agencies (i.g. in the Fiscal Year 2007 the National Science Foundation
has awarded Raytheon $152 million dolars in grants, more than to any other institution and organization in the country ). This, along with heavy lobbying, has led to perennial charges of influence peddling. Raytheon, for instance, contributed nearly a million dollars to various defense-related political campaigns in the presidential election year of 2004, spending much more than that on lobbying expenses. And there are many tight ties between the company and all levels of government. For example, Richard Armitage
, a former United States Deputy Secretary of State, is linked to the company through consultancy work. John M. Deutch
, a former U.S. Director of Central Intelligence
, sits on the board of directors, along with Warren Rudman
, a former Senator. On the other hand, Raytheon has also been involved in several contract
disputes with the U.S. Government
Case of Illegally obtaining classified information in a bidding process
In March 1990, Raytheon pleaded guilty to one felony count of illegally obtaining classified Air Force
budget and planning documents. U.S. District Judge
Albert V. Bryan, Jr. imposed a $10
,000 criminal fine for one felony
count of "conveyance without authority" and $900,000 in civil penalties and damages. The documents allegedly gave Raytheon an unfair advantage against its competitors in bidding for weapons contracts. Although the plea only involved 1983 Air Force documents, United States Attorney
Henry Hudson said Raytheon also illegally obtained a wide range of secret Pentagon
Disputed claims of 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
that 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 United States Congress were misled by definitive statements of success issued by administration and Raytheon representatives during and after the war.
In October 1994, Raytheon paid $4 million to settle a U.S. government claim that it inflated a defense contract for antimissile radar. The PAVE PAWS
(Precision Acquisition Vehicle Entry Phased Array Warning System) system was designed to detect incoming submarine-launched ballistic missiles. The government claimed in a federal lawsuit that Raytheon inflated a contract to upgrade two of four PAVE PAWS sites by proposing to hire higher-skilled employees than were necessary for the job.
Just one year earlier, on October 14, 1993, Raytheon paid $3.7 million to settle allegations that it misled the U.S. Defense Department by overstating the labor costs involved in manufacturing Patriot missiles. "The recovery of this money is yet another warning to contractors that the Truth in Negotiations Act's information disclosure requirements will be strictly and sternly enforced," Frank Hunger, assistant attorney general, said in a statement.
Brazilian SIVAM project
Allegations of bribery
were made against Raytheon in 1995 in connection with its efforts to win a 1.4 billion dollar radar
contract from Brazil
for the SIVAM
project. SIVAM, the acronym for "System for Vigilance over the Amazon
," was a complex radar surveillance
system for use in monitoring the Amazon rainforest
, allegedly to curb the trafficking of narcotics
and to curb illegal logging
or burning of the forest. Brazilian police wiretapped a telephone conversation between a special advisor to the Brazilian President Fernando Henrique Cardoso
, and Raytheon's operative in Brazil, Jose Afonso Assumpcão. According to transcripts published in the Brazilian national weekly Isto É
, when Assumpcão told Gomes dos Santos that Brazilian Senator Gilberto Miranda might block the Raytheon contract, Gomes dos Santos responded, "Damn, did you already pay this guy?". Gomes dos Santos and Brazil's aviation minister resigned because of allegations that this conversation suggested that bribes were paid. Nonetheless, Raytheon ultimately was awarded the contract after lobbying
by the administration of U.S. President Bill Clinton
In 1996 a corporation called AGES Group filed a lawsuit against Raytheon in a federal court
over a $450 million contract to service C-12 Huron
military aircraft. The Boston Herald
reported that AGES alleged that the security firm Wackenhut Corporation
, hired by Raytheon, used video and audio surveillance
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
reported that Raytheon would pay $3 million to AGES Group and purchase $13 million worth of AGES aircraft parts to settle the 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.
In October 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
, Raytheon shares were trading at about 45% below the level at which they had been traded on October 11
. 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
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.
Swanson's Unwritten Rules of Management
On April 24
in a statement released by Raytheon, CEO Swanson admitted to plagiarism
in claiming authorship for his booklet, "Swanson's Unwritten Rules of Management," after a report by The New York Times
. On May 2
, 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 allegation of U.S. Army favoritism
As of September 2006, an NBC News
report of the Army's award of an anti-rocket propelled grenade
(RPG) system raised questions about favoritism towards Raytheon. Major General Sorenson, deputy army secretary for acquisition, disputed the NBC report in detail. The top Democrat on the Tactical Air and Land Forces Subcommittee, Neil Abercrombie
of Hawaii as well as panel chair Curt Weldon
of Pennsylvania strongly criticized NBC for what they saw as "shoddy" reporting. The panel had also asked the General Accounting Office
to investigate the case.
Editing of Wikipedia entry
On August 2007, Wikipedia Scanner
), a web tool (developed by Virgil Griffith
, a Caltech graduate student) that is capable of matching the source of changes on Wikipedia with companies' IP addresses
, discovered that on October 26
, a computer user (identified as 188.8.131.52
) on Raytheon's network edited the Wikipedia article on the company, deleting all information about the Patriot missile's performance in the Gulf War, a lawsuit from competitor AGES, as well as paragraphs describing a $910,000 fine for illegally obtaining classified military documents and a $4 million penalty for inflating a government contract.
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. 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, the groundwater contained carcinogenic contaminants, including trichloroethylene, 1,4-dioxane, and vinyl chloride. The DEP also reported that the clouds contained other toxins, such as lead and toluene.
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. 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.
In another case, Raytheon was ordered by the Environmental Protection Agency 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. The EPA further required the installation and operation of an oxidation process system to treat the solvents and make the water safe to drink.
Mathematics and science education
- In November 2005 Raytheon launched 'MathMovesU', an educational initiative intended to make math and science more interesting and accessible for young people, funded by $1 million in annual grants.
- Raytheon has taken a role in promoting math and science education to develop future engineers. In 2004 the company announced a $850,000 grant to Tuskegee University.
- Raytheon is also a leading sponsor of the FIRST Robotics Program, both on the national and local scale.
- Raytheon also sponsors the mathematics competition MathCounts.
- Raytheon employees contributed $8 million to the United Way of America in 2000. In addition, there is also a program in which Raytheon will match donations from an employee to any non-profit organization up to a certain amount.
- Raytheon Space & Airborne Systems has hosted the national JROTC drill team competition at its El Segundo, California facility for seven straight years.
- In November 2006, Raytheon Integrated Defense Systems (IDS) was honored by Special Olympics Massachusetts (SOMA) for its continued support of the organization through funding and support of more than 700 volunteers in 2006.
- In 2005, Raytheon adopted equal employment opportunity policies regarding transgender and transsexual employees.
- 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.