Southwest Airlines Co. (NYSE: LUV), the largest carrier of domestic air passengers in the U.S., released third-quarter earnings this morning neatly making short shrift of analyst’s estimates. The airline reported record earnings of $259 million, or $0.37 a share, up from $16 million, or $0.02 cents a share in Q3 2012. The company also posted record third-quarter net income (exclusive of special items) of $241 million, or $0.34 per diluted share, compared to third-quarter 2012 net income (exclusive of special items) of $97 million, or $0.13 per diluted share. Operating revenue rose 5.5 percent to $4.55 billion. Analysts had predicted a profit of $0.34 cents a share on revenue of $4.53 billion. Cash flow from operations of $428 million and capital expenditures of $268 million resulted in $160 million in free cash flow in the quarter.

Gary C. Kelly, Chairman of the Board, President, and Chief Executive Officer, stated, “We are very pleased to report a record third quarter earnings performance.  Our People delivered very strong year-over-year earnings growth as we continued to transform our Company for the future.  Our continued focus on strategic initiatives is paying off, and I am very proud of our outstanding Employees for a very solid third quarter financial performance.”

The world’s largest missile manufacturer, Raytheon Company (NYSE: RTN), saw third-quarter profits fall by 2.8 percent on the back of significantly reduced government spending. RTN reported net income of $487 million, or $1.51 a share, compared with $501 million, also $1.51 a share, during the same period in 2012. The earnings beat the $1.33 per share average analyst estimate. Taking the effects of sequestration into account, the company raised its full year profit outlook to a range of $5.67 to $5.77 a share, up from $5.51 to $5.61 projected in July. Net sales for the third quarter 2013 were $5,842 million compared to $6,045 million in the third quarter 2012.

“While the overall economic environment has been challenging, Raytheon’s solid third quarter performance reflects our continued focus on the fundamentals,” said William H. Swanson, Raytheon’s Chairman and CEO. “Our company has continued to perform well by providing affordable solutions and advanced technology that meet our customers’ current and future needs.”

Driven by higher plastic revenue and prices, The Dow Chemical Company (NYSE: DOW) saw its third-quarter profit rise by 17 percent. The company’s performance materials division sales fell 3 percent, performance plastics sales were up 3.3 percent, while sales in feedstock and energy declined 7.7 percent. Dow reported a profit of $679 million, up from $582 million in the same quarter last year. On a per share basis, profit rose to $0.49 from $0.42. Excluding restructuring costs, earnings were $0.50. Dow reduced gross debt by $200 million in the quarter and $2.4 billion year-to-date, resulting in a nearly $120 million decline in interest expense year-to-date.

Andrew N. Liveris, Dow’s Chairman and Chief Executive Officer, stated: “Dow continued to demonstrate positive momentum with our drive to execute self-help measures in a slow-growth world, achieving strong cash flow, as well as year-over-year earnings growth for the fourth consecutive quarter. Through our integrated value chains and the diversity of our targeted end markets, we continue to demonstrate strong performance – particularly in emerging geographies, in our equity earnings, and in key downstream businesses such as Electronics, Coatings and Infrastructure, and Packaging. We continue to prioritize our resources to focus on these and other high-growth markets.”

Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 48 hours.