Raytheon CEO: Classified work is 'seed corn'

The chief executive of Raytheon said today the company is seeing increased classified work, which he said helps ensure future franchises.

In a call with analysts this morning, Tom Kennedy said classified work is the company's "seed corn."

"The greater amount of classified work we have, the stronger our future will be," he said, arguing this type of work helps the government prepare the next set of franchises.

Kennedy said classified bookings made up 22% of the company's total bookings in 2019. That represented a 17% increase over 2018.

Meanwhile, Raytheon said sales in its most recent quarter totaled $7.8 billion, up almost 7% from the same three-month period a year earlier.

The company's quarterly profit totaled $885 million, up 6% from the prior year.

Sales for the year reached $29.2 billion, up about 8% from 2018. Profit for the year hit $3.3 billion, up 15% from 2018.