Raytheon (RTN -1.1%) reported a 12% Q2 net profit rise of $553M compared with $493M Y/Y.
Net sales fell to $5.7B vs. $6.1B Y/Y.
Operating expenses dropped 8% to $4.94B, while operating margin rose to 13.3% from 12.5% a year earlier. Raytheon expects margins to be in the high 12% to low 13% range on an adjusted basis for the second half of the year.
The company says it still expects revenue of $22.5B-$23B for full-year 2014, with an EPS of $5.76-$5.91, excluding special items.