Raytheon Profit Falls 7% in Period

Expectations are a big part of Economics as they can affect supply and demand. When Raytheon, maker of missiles, radar, and other defense and communitcations systems, had their profit fall 7 percent in the last period they looked back at what Wall Street had estimated. As their third quarter profit slipped 7 percent as charges from the firm's sale of commercial aviation businesses offset a revenue gain that nearly beat Wall Street estimates. When the profit of a company goes down then and expectations are not met then the price of the goods decrease along with demand. This can offset a company in a big way when certain profits fall like they did for Ratheon and it caued them to lower costs and sell their merchandise for undisclosed amounts of money. Raytheon is fortunate that their previous profits did not have that big of a decrease. However, Raytheon is forecasting smaller 2008 profits and revenue than industry analysts had predicted, sending Raytheon sahres down 1.7 percent. This causes wages to be more flexible as the compant tries to get more workers to come and be oart of the comapny. Raytheon might want rto do this as some companies find it profitable to have more workers come in so Raytheon migth need to lower wage rates or make then more flexible. What it true is that Raytheon's profit is decreasing and the future doesn't seem bright so what they need to do is lower wages, lower prices, and hire more workers.