Raytheon Chairman and CEO William Swanson said the company’s effort to make its business more efficient while expanding its bookings has paid off. “Raytheon’s strong operating performance in the third quarter reflects our continued focus on reducing cost, and increasing productivity,” Swanson said in a statement. “Our bookings in the quarter were strong, and we have significant opportunities in both domestic and international markets for our innovative technologies and affordable solutions.”

   Raytheon’s Network Centric Systems (NCS) business booked $70 million on the Family of Advanced Beyond-Line-of-Sight Terminals (FAB-T) program for the U.S. Air Force. The new development contract helped push the unit’s third quarter 2012 net sales to $963 million, though still short of the $1.1 billion it reported in the the third quarter 2011.

   Swanson said he expected the NCS division to have a slight dip in net sales, primarily due to lower sales on U.S. Army production programs. Raytheon NCS recorded $131 million of operating income compared to $162 million during the same period last year, attributed to a change in contract mix and lower volume in the third quarter 2012.

   Raytheon Space and Airborne Systems (SAS), however, increased its 2012 third quarter net sales year-over-year, from $1.3 billion in 2011 to $1.32 billion in its most recent quarter. Raytheon SAS booked $105 million for an international sensor program during the quarter, along with $382 million on a number of classified contracts. The division also grew its operating income from $171 million in the comparable period last yea to $190 million, which was mostly driven a change in contract mix and improved program performance.

   Swanson provided his outlook for the next year, which will include significant changes in the U.S. government sector following the outcome of next month’s presidential elections.

   “Although it remains uncertain if sequestration under the Budget Control Act (BCA) will be implemented, sequestration could have a significant impact on the U.S. military, the aerospace and defense industry and federal spending,” Swanson said in a statement. “Several industry associations estimate that sequestration, if implemented, could have a severe impact on U.S. aerospace and defense industry employment nationwide. We believe that Raytheon’s large international market presence, portfolio of programs, technology and focus on high priority areas should help to mitigate some of the potential overall impact.”