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Raytheon Company has announced net sales for the third quarter of 2019 of $7.4 billion, up 9.4 percent compared to $6.8 billion in the third quarter of 2018. Third-quarter 2019 EPS from continuing operations was $3.08 compared to $2.25 in the third quarter of 2018. The increase in the third quarter 2019 EPS from continuing operations was primarily driven by operational improvements and the unfavorable $0.80 per share impact in the third quarter of 2018 related to the pension plan annuity transaction.
As previously announced, on October 11, 2019 at their respective special meetings, Raytheon and United Technologies shareholders overwhelmingly approved all of the proposals necessary to complete the merger of equals transaction. The expected close of the merger remains on track for the first half of 2020, subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals, as well as completion by United Technologies of the separation of its Otis and Carrier businesses.
"Raytheon delivered strong bookings, sales growth, EPS and cash generation in the third quarter," said Thomas A. Kennedy, Raytheon Chairman, and CEO. "Bookings strength across our broad portfolio of proven technology solutions positions the company well for future growth.
"I am pleased that the shareholders of Raytheon and United Technologies voted in favor of our powerful strategic combination. The vote reflects a significant milestone on our path to unite two world-class companies with complementary technologies."
Operating cash flow from continuing operations for the third quarter of 2019 was an inflow of $1,278 million compared to an outflow of $444 million for the third quarter of 2018. The increase in operating cash flow from continuing operations in the third quarter 2019 was primarily due to the $1.25 billion pretax discretionary pension plan contribution in the third quarter of 2018 and the timing of collections in the third quarter of 2019. Operating cash flow from continuing operations for the third quarter of 2019 was better than the company's prior guidance.
The company had bookings of $9.4 billion in the third quarter of 2019, resulting in a book-to-bill ratio of 1.27. Third-quarter 2018 bookings were $8.7 billion.
Raytheon Company, with 2018 sales of $27 billion and 67,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 97 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I® products and services, sensing, effects, and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts.