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The company also approved a $10 billion share repurchase program that will be funded through short and long-term debt. But profit at RTX's Collins Aerospace unit, which deals with commercial aftermarket service, rose 22% to $903 million. RTX reported an overall third-quarter adjusted profit of $1.25 per share, beating Wall Street estimates of $1.21, according to LSEG data. The company now expects reported sales of $68.5 billion, up from about $67.5 billion, and adjusted sales of $74 billion, up from $73 billion. Adjusted earnings per share - previously projected to be $4.95 to $5.05 - are now expected to be between $4.98 and $5.02.

Persons: Benoit Tessier, Pratt, Whitney, RTX, Neil Mitchill, Pratyush Thakur, Mike Stone, Valerie Insinna, Krishna Chandra Eluri, Mark Potter Organizations: Raytheon Technologies Corporation, International Paris Air, Le, REUTERS, Collins Aerospace, Reuters, RTX, RTX's Collins Aerospace, Wall, Intelligence, Services, Raytheon, Thomson Locations: Le Bourget, Paris, France, Arlington , Virginia, Bengaluru, Washington

RTX said on Monday it would have to pull 600 to 700 of its Pratt & Whitney Geared Turbofan (GTF) engines from Airbus A320neo jets for quality inspections over the next three years. The engine issue was first disclosed in July, but RTX made the extent of the problem clearer on Monday. The announcement caused waves up and down the industry, from component manufacturers like Japan's Kawasaki Heavy Industries to airline carriers like Germany's Lufthansa that rely on the popular Airbus jets. In July, RTX said microscopic contaminants were found in a powdered metal used in high-pressure turbine discs that are part of the GTF engine's core. RTX is one of two manufacturers of engines for the popular narrowbody Airbus A320neo, the other being CFM International, a joint venture between GE (GE.N) and Safran (SAF.PA).

Persons: Benoit Tessier, RTX, Guillaume Faury, Ken Herbert, Japan's IHI, Safran, Valerie Insinna, Rajesh Kumar Singh, Abhijith, Aniruddha Ghosh, Mehr Bedi, David Gaffen, Arun Koyyur Organizations: Raytheon Technologies Corporation, International Paris Air, Le, REUTERS, Aerospace, Airbus, Pratt & Whitney, Washington D.C, Japan's Kawasaki Heavy Industries, Lufthansa, Raytheon, United Technologies, Capital, AIRLINES, HIT Aerospace, London, Melrose Industries, Kawasaki Heavy Industries, Aero, Air New Zealand, Singapore Airlines, Wizz, Airbus A320neo, CFM International, GE, Thomson Locations: Le Bourget, Paris, France, Washington, RTX, New Delhi, Bengaluru

Visitor passes the Raytheon Technologies Corporation (RTX) logo at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. In July, RTX said a rare powder metal defect could lead to the cracking of some engine components and called for accelerated inspections affecting 200 engines by mid-September. Repair work that CEO Greg Hayes had initially expected would take 60 days is now projected to last up to 300 days per engine. An average of 350 jets could be grounded per year through 2026, with as many as 650 jets sitting idle in the first half of 2024. Disclosing higher-than-expected gross costs of $6-7 billion for dealing with the problem, RTX said it expected an up to $3.5 billion pre-tax hit to profits over the next several years.

Persons: Benoit Tessier, Pratt & Whitney, RTX, Greg Hayes, Safran, Hayes, Germany's, Robert Stallard, Valerie Insinna, Abhijith, Tim Hepher, Arun Koyyur, Nick Zieminski, Grant McCool Organizations: Raytheon Technologies Corporation, International Paris Air, Le, REUTERS, Pratt &, RTX Corp, Airbus, Pratt, Raytheon, GE, CFM, Boeing, Aero, Germany's Lufthansa, AIRBUS, U.S, Spirit Airlines, JetBlue Airways, Hawaiian Airlines, Jefferies, Vertical Research Partners, Thomson Locations: Le Bourget, Paris, France, Clayville , New York, Washington, Bengaluru

The issue also forced RTX to decrease its $9 billion free cash flow goal for 2025 to approximately $7.5 billion. The quality issue relates to a "rare condition" in powder metal used to manufacture engine parts, such as high pressure turbine disks and high-pressure compressor disks, that could result in micro-cracks and fatigue. Pratt & Whitney is also analyzing the impact of the quality issue on other engine models in its fleet, but that impact is expected to be far less, RTX said. The company expects to release a service bulletin in the next 60 days laying out an inspection protocol for high pressure turbine disks and compressor disks. It also plans to add maintenance capacity and increase part output to help mitigate the impact to GTF customers, RTX, said.

Persons: Benoit Tessier, RTX, Pratt & Whitney, Valerie Insinna, Abhijith, Arun Koyyur, Nick Zieminski Organizations: Raytheon Technologies Corporation, International Paris Air, Le, REUTERS, Aerospace, RTX, Airbus, Raytheon, Pratt &, Thomson Locations: Le Bourget, Paris, France, RTX, Washington, Bengaluru

☆ Safran nears $1.8 billion deal to acquire Raytheon's flight controls unit
▼ + stars: | 2023-06-14 | by ( David Carnevali | ) www.reuters.com time to read: +2 min

June 14 (Reuters) - French aerospace engine maker Safran SA (SAF.PA) is nearing an approximately $1.8 billion deal to acquire a Raytheon Technologies Corp (RTX.N) unit that makes flight controls for aircraft, helicopters and missiles, according to a person familiar with the matter. Safran may reach a deal to acquire Raytheon's actuation business that makes flight controls as early as this week, the source said, asking not to be identified because the matter is confidential. Spokespeople for Safran and Raytheon did not immediately respond to requests for comment. Safran said on June 5 it was participating in a "competitive process" for Raytheon's flight controls business, without commenting on the chances of an agreement or the terms of a deal. The Raytheon business will strengthen Safran's ties with Airbus SE (AIR.PA), since it sells into many of its commercial aircraft and has some operations in France.

Persons: Safran, Parker, Spokespeople, Olivier Andries, Rockwell Collins, Greg Hayes, David Carnevali, Louise Heavens Organizations: Safran SA, Raytheon Technologies Corp, Raytheon, United Technologies, Moog Inc, Eaton Corp, Woodward Inc, Hannifin, Bloomberg News, Safran's, French, Zodiac Aerospace, Airbus, U.S ., Rockwell, Collins Aerospace, Thomson Locations: France, New York

☆ Can Ukraine use Patriot defense systems to knock out Russian hypersonic missiles?
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +4 min

Here is what you need to know about the Patriot:WHAT IS THE PATRIOT MISSILE SYSTEM? CAN PATRIOTS KNOCK OUT HYPERSONIC MISSILES? Ukraine has said it needs more air defense systems to protect against the barrage of missile and drones strikes from Russian forces. The United States has also provided a pair of National Advanced Surface-to-Air Missile Systems (NASAMS) to Ukraine. Raytheon has built more 240 Patriot systems and they are currently used by 18 countries, including the United States.

☆ Factbox: The engine dispute at the heart of Go First's bankruptcy filing
▼ + stars: | 2023-05-03 | by ( ) www.reuters.com time to read: +3 min

Here are some details on the U.S. enginemaker's geared turbofan (GTF) engines, which Go First says are at the heart of the crisis. In 2016, Go First received its first A320neo aircraft powered by GTF engines after placing an order for 72 narrow-body jets from Airbus (AIR.PA). Pratt & Whitney is the exclusive engine supplier for the airline's A320neo aircraft fleet. The issues with the GTF engines grounded several A320neo planes in 2017, a year after the engine was launched. In India alone, IndiGo and Go First, among the biggest customers for the A320neo planes, grounded as many as 12 planes at one point, and cancelled dozens of flights.

☆ Raytheon, Lockheed executives banned from China
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: 1 min

[1/2] Chinese and U.S. flags flutter outside a company building in Shanghai, China April 14, 2021. REUTERS/Aly SongBEIJING, April 18 (Reuters) - China has banned senior executives of Raytheon Missiles & Defense and Lockheed Martin Corp (LMT.N) from entering, working, staying and residing in the country since Feb. 16, the Ministry of Commerce said on Tuesday. Raytheon and Lockheed Martin have been involved in arms sales to Taiwan for a long time, the ministry said. China banned the two U.S. firms from carrying out import and export activities with Chinese enterprises in a bid to prevent Chinese products from being used in their military businesses. Raytheon Missiles & Defense is a unit of Raytheon Technologies Corp (RTX.N).

☆ Japan awards Mitsubishi Heavy $2.8 bln missile contracts
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +1 min

TOKYO, April 11 (Reuters) - Japan has awarded its largest defence equipment maker Mitsubishi Heavy Industries (7011.T) contracts worth 378 billion yen ($2.84 billion) to develop and build a new missile force aimed at deterring China from using military force in East Asia. The new missile force, which is expected to be capable of striking ships and land targets more than 1,000 km from Japan, is at the center of that plan. To bolster its defences before it can deploy those home-built missiles, Japan in February also said it will bulk order Raytheon Technologies Corp (RTX.N) Tomahawk cruise missiles from the United States. It has not yet said how many it will buy, but local media reports said it will be as many as 500. ($1 = 133.0800 yen)Reporting by Tim Kelly; Editing by Jan HarveyOur Standards: The Thomson Reuters Trust Principles.

☆ Intel, Raytheon, Other Big Companies Push Back on EU Subsidy Rules
▼ + stars: | 2023-03-28 | by ( Kim Mackrael | ) www.wsj.com time to read: 1 min

The new European Union foreign-subsidy rules are set to take effect later this year. BRUSSELS—Multinational companies including Intel Corp. and Raytheon Technologies Corp. are warning that new European Union rules for reporting foreign subsidies are so onerous they could disrupt mergers and acquisitions and impede public tendering. In a letter sent last week to the European Commission, the bloc’s executive body, the companies said the commission “severely underestimates” the work required to comply. While the companies said they support the overall aim of the new rules, they said their implementation “will result in an extremely complex administrative ordeal.”

☆ Multinationals Slam New EU Foreign-Subsidy Law’s Reporting Rules
▼ + stars: | 2023-03-28 | by ( Kim Mackrael | ) www.wsj.com time to read: 1 min

☆ These 74 stocks across 5 categories of AI are the top picks from the sector's leading fund managers.
▼ + stars: | 2023-03-18 | by ( Laila Maidan | ) www.businessinsider.com time to read: +11 min

These 74 stocks are picked by AI ETF managers. What she believes is unique about her fund is its heavy focus on quantum computing technology, making up 41.22% of the fund. While big data is used for different technologies, it enables AI to work with massive data sets in its machine-learning process. TipRanks, a financial technology website that uses AI to analyze financial data, created a stock list for what they deem are the best AI stocks based on popularity. TipRanks' list of nine of the best AI stocks have large market caps and are likely to remain relevant for a long time.

☆ Biden wants $886 billion defense budget with eyes on Ukraine and future wars
▼ + stars: | 2023-03-13 | by ( Mike Stone | ) www.reuters.com time to read: +4 min

The total amount of the 2024 budget proposal is $28 billion more than last year's $858 billion. Congress has passed an annual defense budget for more than 60 years. Biden's budget request also speeds the Department of Defense's pace for buying the stealthy F-35 fighter jet to 83. The 2023 budget request asked for 61 F-35 jets made by Lockheed Martin and Congress increased that number to 77. The budget would benefit the biggest U.S. defense contractors including Lockheed, Raytheon, Northrop Grumman Corp (NOC.N) and General Dynamics Corp (GD.N).

☆ Big Companies Seeing Tax Benefits From Law Change Some of Them Fought
▼ + stars: | 2023-03-08 | by ( Richard Rubin | Jennifer Williams-Alvarez | ) www.wsj.com time to read: +6 min

Those companies now qualify for a bigger tax break for exports because of the way the research-deduction change alters their tax calculations. Photo: Dado Ruvic/REUTERSModerna saw that tax break jump to a 7.4 percentage-point benefit on its tax rate from 4.8 points in 2021, even as its cash tax payments rose. The change requiring companies to spread out research deductions was part of the 2017 tax law, and it was designed to partly offset the revenue loss from cutting corporate tax rates. PREVIEWAt the same time, the smaller research deduction means many companies can get a bigger advantage from the export tax break. The size of the FDII tax break is based in part on how much income a company has.

☆ Defence contractors target Australia as it gears up to counter China
▼ + stars: | 2023-03-02 | by ( Jamie Freed | ) www.reuters.com time to read: +4 min

The firms are pushing for billions of dollars' worth of purchases expected after Australia's long-awaited defence strategic review (DSR) is made public next month, setting out the force structure and equipment required over the next decade. The government's aim is to "speed up the acquisition cycle" and move as quickly as possible once the review is public, Defence Industry Minister Pat Conroy told reporters on Wednesday. Australia ranked 12th globally in military spending in 2021 at $31.8 billion, according to the Stockholm International Peace Research Institute. Lockheed was selected last year alongside Raytheon Technologies Corp (RTX.N) to accelerate the manufacture and delivery of guided weapons to Australia. In-country assembly, and eventually manufacturing, are a focus of the project that aims to build local stockpiles, said Ken Kota, vice president of Lockheed's Australian defence strategic capabilities office.

☆ U.S. State Dept okays potential Javelin anti-tank missile sales to UK -Pentagon
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, Feb 28 (Reuters) - The U.S. State Department has approved the possible sale of anti-tank Javelin missiles to the United Kingdom for an estimated $125 million, the Pentagon said on Tuesday. The potential sale package authorized by the State Department would include 600 Javelins technical assistance, and logistics support, the Pentagon said. The Pentagon's Defense Security Cooperation Agency notified Congress of the possible sale on Tuesday. Despite approval by the State Department, the notification does not indicate that a contract has been signed or that negotiations have concluded. Reporting Rami Ayyub; writing by Paul Grant and Mike Stone; Editing by Doina Chiacu and David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. govt clears F-35 engine deliveries after safety concerns addressed
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

Feb 24 (Reuters) - Raytheon Technologies Corp (RTX.N) said on Friday the U.S. government has cleared its Pratt and Whitney unit to resume deliveries of its F-135 engine for the F-35 fighter jet, after a halt was put in place in December following the discovery of a safety concern. The F-35 Joint Program Office said in a statement its engineers worked alongside Pratt & Whitney and Lockheed Martin (LMT.N) to develop "mitigations for a rare system phenomenon involving harmonic resonance to develop a path forward for safe operation of the F135 in flight". "The actions the government and industry team are taking will ensure incorporation of mitigation measures that will fully address/resolve this rare phenomenon in impacted F135 engines," it added. The JPO also said the government was working on drawing up instructions for safely resuming flight operations for impacted and new production aircraft. Reporting by Tiyashi Datta in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ Raytheon says can support mid-50 Airbus A320 output, backs Boeing target
▼ + stars: | 2023-02-22 | by ( Abhijith Ganapavaram | ) www.reuters.com time to read: +2 min

Feb 22 (Reuters) - Aerospace giant Raytheon Technologies Corp (RTX.N) can support a monthly production rate in the mid-50s range for Airbus SE's (AIR.PA) A320 aircraft this year, a target that appears slightly below the planemaker's planned output hike. Speaking at a Barclays conference on Wednesday, Raytheon Chief Executive Officer Greg Hayes backed Airbus rival Boeing Co's (BA.N) planned 737 MAX jet production hike. Boeing aims to raise the production of its bestselling 737 MAX jetliner from about 31 jets a month. Production targets of the planemakers are under the scanner by investors - albeit for different reasons. Raytheon-owned Pratt & Whitney's engines power all Airbus A220 jets and about half of A320neo aircraft.

☆ China Sanctions Lockheed Martin and Raytheon as Tensions Over Balloon Increase
▼ + stars: | 2023-02-16 | by ( Dave Sebastian | ) www.wsj.com time to read: 1 min

Lockheed Martin is prohibited from export and import activities related to China under the country’s latest sanctions. HONG KONG–China has imposed fresh sanctions on the U.S.’s two largest defense contractors, a largely symbolic gesture that nevertheless signaled escalating tensions between the world’s two largest economies following the shooting down of a Chinese balloon by an Air Force fighter jet. On Thursday, the Chinese Commerce Ministry said it blacklisted Lockheed Martin Corp. and an arm of Raytheon Technologies Corp. over the companies’ arms sales to Taiwan. Putting the companies on its “unreliable entities list” prohibits them from export and import activities related to China.

☆ China sanctions Lockheed Martin, Raytheon for selling weapons to Taiwan
▼ + stars: | 2023-02-16 | by ( ) www.cnbc.com time to read: +3 min

China on Thursday imposed trade and investment sanctions on Lockheed Martin and a unit of Raytheon for supplying weapons to Taiwan, stepping up efforts to isolate the island democracy claimed by the ruling Communist Party as part of its territory. Lockheed Martin Corp. and Raytheon Technologies Corp.'s Raytheon Missiles and Defense are barred from importing goods into China or making new investments in the country, the Ministry of Commerce announced. The United States bars most sales of weapons-related technology to China, but some military contractors also have civilian businesses in aerospace and other markets. The United States has no official relations with Taiwan but maintains extensive commercial and informal contacts. In China, Lockheed Martin has sold air traffic control equipment for civilian airports and helicopters for commercial use.

☆ China imposes sanctions on Lockheed Martin, Raytheon over Taiwan arms sales
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +1 min

[1/2] The logo of Lockheed Martin is seen at Euronaval, the world naval defence exhibition in Le Bourget near Paris, France, October 23, 2018. REUTERS/Benoit TessierBEIJING, Feb 16 (Reuters) - China's commerce ministry on Thursday said it put Lockheed Martin Corp (LMT.N) and Raytheon Technologies Corp (RTX.N) onto an "unreliable entities list" over arms sales to Taiwan, its latest sanctions against the two U.S. defense contractors. The regulations prohibit Lockheed Martin and Raytheon Missile and Defense Corporation, a subsidiary of Raytheon Technologies, from "engaging in import and export activities related to China", according to the commerce ministry statement. China previously sanctioned the two firms in Feburary last year over a $100-million arms sale to Taiwan, a self-ruled island which Beijing views as a breakaway province. China's foreign ministry at the time said the sale "undermined China's security interests, seriously undermined China-U.S. relations and peace and stability in the Taiwan Strait".

☆ The AI craze has sent some stocks soaring up to 300%. This list of over 74 stocks across 5 categories features the top picks from the sector's leading fund managers.
▼ + stars: | 2023-02-08 | by ( Laila Maidan | ) www.businessinsider.com time to read: +11 min

☆ S&P 500 ends slightly down after mixed earnings, opening glitch
▼ + stars: | 2023-01-24 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

The Nasdaq joined the S&P 500 in negative territory, while the Dow ended modestly higher. Fourth quarter earnings season is in full swing, with 72 of the companies in the S&P 500 having reported. On aggregate, analysts now expect S&P 500 earnings 2.9% below the year-ago quarter, down from the 1.6% year-on-year decline seen on Jan. 1, per Refinitiv. Among the 11 major sectors of the S&P 500, industrials suffered the biggest loss. The S&P 500 posted 26 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 77 new highs and 22 new lows.

☆ Wall Street totters after mixed earnings, trade halt glitch
▼ + stars: | 2023-01-24 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

More than 80 stocks were affected by the glitch, which caused wide swings in opening prices in stocks, including Walmart Inc (WMT.N) and Nike Inc (NKE.N). Fourth quarter earnings season is in full swing, with 72 of the companies in the S&P 500 having reported. On aggregate, analysts now expect S&P 500 earnings 2.9% below the year-ago quarter, down from the 1.6% year-on-year decline seen on Jan. 1, per Refinitiv. Among the 11 major sectors of the S&P 500, industrials was down the most. The S&P 500 posted 27 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 69 new highs and 21 new lows.

Jan 24 (Reuters) - Aerospace and defense major Raytheon Technologies Corp (RTX.N) on Tuesday beat analysts' estimates for fourth-quarter profit, as strong travel demand across the globe boosted demand for its jet engines, parts and services. Raytheon reported an adjusted net income of $1.27 per share in the quarter ended Dec. 31, above analysts' average estimate of $1.24 per share, according to Refinitiv data. The Arlington, Virginia based company's avionics unit, Collins Aerospace, reported a 14.6% increase in its quarterly sales and a 60.7% jump in operating profit in the reported quarter. Raytheon's missiles and defense unit's sales were up 6.2% to $4.1 billion in the fourth quarter. Raytheon's fourth-quarter net sales were up 6.2% at $18.09 billion, missing analysts' average estimate of $18.15 billion.

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