LOOKS LIKE THEY ARE NOT DOING WELL FINANCIALLY. SEC PROBE BEING LAUNCHED.

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Wednesday February 23, 6:08 pm Eastern Time

FOCUS-Raytheon faces informal SEC accounting probe

(Adds analysts' comments, details, paras 5-8, 11-13)

LEXINGTON, Mass., Feb 23 (Reuters) - Raytheon Co. (NYSE:RTNa - news) (NYSE:RTNb - news) said on Wednesday it was responding to an informal inquiry from the U.S. Securities and Exchange Commission about the defense and aerospace company's recent restatement of earnings for the three years dating to 1997.

``It's informal,'' Raytheon spokesman David Polk said. ``It is our understanding that the Securities and Exchange Commission customarily makes inquiries when companies restate results.''

The company revealed the inquiry on Tuesday in a filing with the SEC.

Analysts said that while the probe is not something the struggling Raytheon needs, they did not expect that it would amount to much.

``It doesn't strike me at this time as a significant deal,'' said analyst Joseph Nadol of Donaldson, Lufkin & Jenrette.

Paul Nisbet of JSA Research said any fine that might result from such an investigation would be unlikely to have an impact on earnings projections.

But, Nisbet added, ``It's a diversion from what they would like to be spending their time doing ... I'm sure the CFO has plenty of other things to do.''

Plagued by revenue shortfalls, contract adjustments, production delays and downgraded earnings forecasts, Raytheon has had a rough time in recent months.

In January the company reported fourth-quarter earnings of 21 cents a share, which was cut by 11 cents per share by the adoption of a new SEC guideline for recognizing revenue on so-called ``bill and hold'' transactions in Raytheon's aircraft division.

Previously, Raytheon would record as revenue sales of some airplanes that were substantially completed, but under the new SEC guideline Raytheon does not recognize revenue until a plane is delivered to the customer.

The No. 3 U.S. defense and aerospace company said in its filing that it is in the process of responding to the SEC inquiry. http://biz.yahoo.com/rf/000223/bgh.html

Raytheon was slapped with a series of shareholder lawsuits last fall as its stock was pummeled following warnings that 1999 and 2000 earnings would fall far short of expectations.

In its filing on Tuesday, Raytheon said it was contesting those lawsuits ``vigorously.''

Raytheon's class B shares dipped 1-5/16 to 19 5/8 on Wednesday, far below their 52-week high of 76-9/16.

http://biz.yahoo.com/rf/000225/ye.html

Friday February 25, 12:54 pm Eastern Time

Raytheon to privately sell $2.0 bln debt

NEW YORK, Feb 25 (Reuters) - Raytheon Co. (NYSE:RTNa - news), the No. 3 U.S. defense contractor, plans to sell $2.0 billion of debt next week, market sources not connected with the deal said.

The deal is expected to be conducted in the Rule 144a market through Credit Suisse First Boston and Morgan Stanley, Dean Witter & Co., sources said. Maturities have not been set, they said.

Moody's Investors Service on Jan. 18 affirmed Raytheon's Baa2 senior debt rating, with a negative outlook, and said its various ratings affected about $14.6 billion of debt and bank facilities.

Standard & Poor's on Oct. 29 rated Raytheon's senior unsecured debt BBB-minus, one notch above junk, with a stable outlook.

Raytheon is based in Lexington, Mass