American multinational aerospace and defence conglomerate RTX announced its Q3 results on 24 October, with sales down $13.5bn, 21% lower than last year, with $5.4bn of this drop related to a manufacturing issue with powder metal in engineering parts, which lead to inspections and engine removals from a tranche of operational engines in August and September.
The company also announced that it had entered into a definitive agreement to sell the Raytheon Cybersecurity, Intelligence and Services business for approximately $1.3bn.
During the filings call, RTX CEO and Chairman Greg Hayes gave an update on the powder metal issue, stating that during the early stages of engine inspections and removals of the PW1100 engine had left the outlook for both financials and operations consistent with expectations. Chief Operating Officer Chris Call added that the powdered metal issue is the company’s “top priority”, and that the outlook for fleet management and financial impact remain intact.
Adjusted Sales were up by $19.0bn, a 12% increase over last year, credited by Hayes to historic demand across the defence and aerospace business. The adjusted earnings per share were $1.25, up 3% versus the previous year.
Raytheon recorded an operating profit of $560m, down 18% versus the prior year.
Neil Mitchell, Chief Financial Officer for RTX, said that military sales for its Collins segment were down 1% “primarily due to the timing of deliveries”, but the Pratt & Whitney segment’s higher military sales had increased its operating profit from a prior range of $200m up to $275m.
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