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☆ Growing geopolitical conflicts have some investors feeling guilty about buying defense stocks
▼ + stars: | 2023-11-12 | by ( Alex Harring | ) www.cnbc.com time to read: +4 min

He went on to list the names and performances of defense-focused funds including the iShares U.S. Aerospace & Defense ETF (ITA) and the SPDR S&P Aerospace & Defense ETF (XAR) . As the latest geopolitical conflict escalates, these investors are ignoring defense stocks despite the market axiom that those holdings tend to perform better in times of war. Indeed, the iShares U.S. Aerospace & Defense ETF popped more than 4% in the week following Hamas' Oct. 7 attack and went on to finish October up about 3.7%. Ignoring market wisdomRetail traders poured into defense stocks and funds in the aftermath of the invasion, but inflows have since cooled, according to Vanda Research. But not everyone sees the intensifying conflict as a moment to invest in defense stocks.

Persons: Kenneth Suna, Suna, Vanda, Sow, Andrew Behar, it's, Behar, Hannah Beier, Jason Aiken Organizations: Raytheon, U.S . Aerospace & Defense ETF, P Aerospace & Defense ETF, D.C, CNBC, U.S . Aerospace & Defense, Vanda Research . Defense, Trust, Scranton Army, Plant, Getty, General, Funds Locations: Israel, U.S, Washington, Scranton, Scranton , Pennsylvania, Russia, Ukraine

☆ Nikki Haley Is Gaining Ground - The New York Times
▼ + stars: | 2023-11-08 | by ( Katherine Miller | ) www.nytimes.com time to read: +3 min

She’d need to continue dominating debates; she’d need to not fade or completely lose it when Mr. Trump turns a real attack on her; and more than anything she’d need a substantive critique, even if gently delivered, of Mr. Trump to feel true and land with people. A win in Iowa or New Hampshire for Ms. Haley would reset the entire primary. That response likely derived from the ridiculous period after Jan. 6, when Ms. Haley criticized Mr. Trump harshly, then seemed to dial it back. Part of it is the smooth, pain-free way Ms. Haley entered and extricated herself from the Trump administration, after criticizing him in 2016 and endorsing Marco Rubio. This picture of Ms. Haley culminated in Vivek Ramaswamy congratulating her on her future on the Raytheon board.

Persons: Trump, Haley, Sarah Palin, Mitt Romney, today’s, Jan, Mr, extricated, Marco Rubio, Vivek Ramaswamy, Eva Braun, “, Rex Tillerson, Tim Alberta, Stuart Stevens, Marjorie Taylor Greene, Nikki, Katon Dawson, ” Organizations: Mr, South Carolina Legislature, Ivy, Raytheon, Democratic Party, Yorker, “ Locations: New Hampshire, Iowa, South Carolina, Alberta

Details of how Japan is paring back military procurement due to currency fluctuations have not been previously reported. China, which has not ruled out using military force to bring Taiwan under its control, has expressed concern about Japan's military spending plans, accusing it of displaying a "Cold War mentality." In December, defence ministry officials discussed an order for 34 twin-rotor Chinook transport helicopters at roughly 15 billion yen per aircraft, two of the sources said. She declined to comment on whether the defence ministry had dropped an order for the seaplane. A ministry spokesperson confirmed the companies delivered a letter on Oct 25 to Defence Minister Minoru Kihara urging the government to proceed with the defence procurement as planned.

Persons: Tomohiro, Fumio Kishida, Christopher Johnstone, Johnstone, Biden, Kishida, outlays, spender, Nancy Pelosi's, Yoji Koda, Lockheed Martin, Minoru Kihara, Kevin Maher, Nobuhiro Kubo, Takaya Yamaguchi, Tim Kelly, Yoshifumi Takemoto, Katerina Ang Organizations: Defense Force, East Fuji Maneuver, REUTERS Acquire, Rights, Reuters, Bank of Japan, Center for Strategic, International Studies, National Security, East, Japan's Ministry of Defence, Embassy, Pentagon, Russian, Kawasaki Heavy Industries, Boeing Co, Kawasaki, Industries, Maritime Self Defense Force, Raytheon, Lockheed, Japan Business Federation, NMV Consulting, U.S . State Department's Office, Japan Affairs, Thomson Locations: Japan, Gotemba, Shizuoka, Taiwan, Tokyo, Washington, Beijing, East Asia, U.S, East China, Ukraine, China, U.S .

☆ Raytheon's CEO said on an earnings call that the company stood to 'benefit' from DoD budget increases due to the war in Israel
▼ + stars: | 2023-10-25 | by ( Caroline Haskins | ) www.businessinsider.com time to read: +5 min

President Biden requested an additional $106 billion to the DoD budget, citing the Israel-Hamas war and other global conflicts. The CEO of military contractor RTX said Tuesday the company could "benefit" from an increased DoD budget. RTX Corporation, formerly known as Raytheon, is a long-time US defense contractor which has worked on supplying Israel's Iron Dome since 2014. Liwag asked how quickly RTX Corporation, formerly known as Raytheon Corporation, could profit if Congress approves President Biden's request for a DoD budget increase in 2024. He called the budget request "a smart investment" in American security and emphasized the need to support Israel's Iron Dome.

Persons: Biden, RTX, —, Greg Hayes, Hayes, Kristine Liwag, Morgan Stanley, Liwag, Biden's, you've, Liwang, Israel, Kevin McCarthy's, Jake Sullivan, USA, Sam Deneke Organizations: RTX Corporation, Raytheon, Service, RTX, US Department, Raytheon Corporation, Israel, Raytheon Defense, CNBC, Israeli Defense Force, Rafael Advanced Defense Systems, DoD, Republican Party, National, U.S . Department of Defense, Corporation Locations: Israel, Ukraine, Gaza, U.S, Egypt

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

JERUSALEM (AP) — Since Israel activated the Iron Dome in 2011, the cutting-edge rocket-defense system has intercepted thousands of rockets fired from the Gaza Strip. Here is a look at the accomplishments — and limitations — of the Iron Dome. HOW DOES THE IRON DOME WORK? The Iron Dome is a series of batteries that use radars to detect incoming short-range rockets and intercept them. “We’re surging additional military assistance, including ammunition and interceptors to replenish Iron Dome,” Biden said.

Persons: Israel's, Rafael, Joe Biden, “, ” Biden Organizations: JERUSALEM, Hamas, Raytheon, Israel's Rafael Defense Systems, Institute for National Security Studies, Israel Locations: Israel, Gaza, West, Tel Aviv, U.S, Iron, israel

☆ Wall Street braces for big tech earnings and key economic data in the week ahead as Treasury yields rise
▼ + stars: | 2023-10-20 | by ( Sarah Min | ) www.cnbc.com time to read: +6 min

Major earnings reports and economic data will be in focus next week as investors seek clarity on how the Federal Reserve will proceed from here. But next week will bring the lion's share of results including reports from mega-cap darlings Alphabet, Amazon , Meta Platforms and Microsoft . While the S & P 500 is higher by 10% in 2023, the equal-weighted index is down slightly. Of note, Tesla shares sank more than 9% on Thursday following a pessimistic economic outlook from CEO Elon Musk during the company's earnings call. Its the S & P 500's first weekly loss in three weeks.

Persons: bode, Elon Musk, We're, Sam Stovall, it's, Raphael Bostic, Ed Clissold, Ned Davis, Clissold, Katie Stockton, Rob Ginsberg, I'm, CFRA's Stovall, Stovall, Sherwin, Williams, Kimberly, Hess, Raymond James Financial, Keurig Dr Pepper, Northrop, Willis Towers Watson, Stanley Black, Rowe Price Organizations: Federal Reserve, Microsoft, Investors, CFRA, Dow Jones, Treasury, Fed, Atlanta Federal Reserve, Ned, Ned Davis Research, Wolfe Research, Chicago, P, PMI, P Global PMI Manufacturing, P Global PMI Services, Richmond Fed, Visa, Texas Instruments, General Electric, NextEra Energy, Raytheon Technologies, Dow, Inc, General Motors, Halliburton, Coca, Corning, Hilton Worldwide, General Dynamics, Dominion Freight, Mobile US, Boeing, Raymond, Technology, Whirlpool, International Business Machines, O'Reilly, Honeywell, Northrop Grumman, Mastercard, Amazon, Royal Caribbean Group, Tractor Supply, United Parcel Service, Hasbro, Southwest Airlines, Comcast, Hershey, Intel, L3Harris Technologies, Ford Motor, Energy, Chevron, Decker, Exxon Mobil, Colgate, Palmolive Locations: U.S, Atlanta, AbbVie

☆ What the Israel-Hamas war means for defense stocks
▼ + stars: | 2023-10-18 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —When war breaks out, defense companies tend to make money. That means aerospace and defense stocks tend to rise during geopolitical unrest. Defense stocks typically rise after military conflicts but soon lose those gains. Following Russia’s invasion of Ukraine, the iShares defense ETF surged by 5%, with Lockheed Martin and Northrop Grumman’s shares jumping about 20%. Goldman Sachs announced third-quarter results on Tuesday morning, reporting earnings of $5.47 per share, which beat the $5.31 expected by analysts.

Persons: Lockheed Martin, Northrop Grumman, ”, Jim Taiclet, “ That’s, JPMorgan Chase, Jamie Dimon, “, ” Sam Stovall, Joe Biden’s, Northrop Grumman’s, Raffi Boyadjian, Goldman Sachs, David Solomon, “ David, Goldman, Tony Fratto, Solomon, DJ, ” Solomon, it’s, Lloyd Blankfein, they’re, Elon Musk’s, Elon Musk, X, Clare Duffy Organizations: CNN Business, Bell, New York CNN, U.S . Aerospace & Defense ETF, Raytheon, Lockheed, Boeing, General Dynamics, Northrop, “, Lockheed Martin Corporation, titans, Hamas, JPMorgan, Defense, XM, Treasury, CNN, Revenue, Twitter Locations: New York, Israel, U.S, Ukraine, Kippur, Kuwait, South Beach, New Zealand, Philippines

Chief among those is getting munitions for Israel's Iron Dome air defense system sped along. President Joe Biden said Tuesday that resupplying Iron Dome munitions and air defense systems was an immediate priority. “We’re surging additional military assistance, including ammunition and interceptors to replenish Iron Dome,” Biden said. Raytheon produces most of the missile components for Iron Dome in the U.S., and the Army has two Iron Dome systems in its stockpile. Neither the Air Force nor Central Command would comment on what additional missions U.S. airpower might take on in response to the conflict.

Persons: Lloyd Austin, Joe Biden, ” Biden, “ We’re, Gerald R, Dwight D, Eisenhower, Biden, John Kirby, Frank Kendall, Kendall, hadn't, Colleen Long Organizations: WASHINGTON, Hamas, Israel . Defense, Raytheon, Israel Defense Forces, Iron Dome, Army, Pentagon, Ford, Italian Navy, Hawkeye, Eisenhower, AIR FORCE, Air Force, Atlantic Council, U.S . Air Force, Central Command, Associated Press Locations: U.S, Norfolk , Virginia, Israel, Iran, Iron, Syria

☆ Monthly Meeting Q&A with Jim Cramer on everything from tech to health care to industrials
▼ + stars: | 2023-10-12 | by ( Paulina Likos | ) www.cnbc.com time to read: +13 min

(Todd) Jim Cramer: I believe that the rally in oil was a short squeeze that is now over. (John) Jim Cramer: FTC chair Lina Khan does not have a strong antitrust case against Amazon (AMZN) – her arguments don't make sense. (Norman) Jim Cramer: We like to have something related to the housing cycle that could make money. (James) Jim Cramer: This is more of an art, not a science. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Persons: Jim Cramer's, Jeff Marks, Jim Cramer, It's, Todd, Joe Biden, Tom Jorden, Donald, John, it's, Zev Fima, I've, Peter, Marc Benioff, Lina Khan, Khan, David, Rich Galanti, Eli Lilly, LLY, we've, Lilly, clobbered, Mounjaro, Stanley Black, Decker, that's, James, Michael Steinhardt, Rhonda, Vimal Kapur, Darius Adamczyk, Jim Organizations: Investing Club, Federal Reserve, Nvidia, Fed, Apple, Shark, ESPN, Our, Nasdaq, Amazon, Costco, Diabetes, Procter & Gamble, Honeywell, Electric, GE, Raytheon Technologies, CNBC Locations: Russia, China

☆ Why Israel's Iron Dome couldn't stop every rocket strike from Hamas
▼ + stars: | 2023-10-11 | by ( Marianne Guenot | ) www.businessinsider.com time to read: +8 min

The Iron Dome has been a crucial part of Israel's first line of defense for the past decade. The cost of the Iron Dome is under scrutinyAn ongoing controversy about the Iron Dome is its cost — some of which has come out of US pockets. If the Iron Dome were shown to be less effective under heavy fire, that cost-to-benefit ratio might shift. Per reports, the Iron Dome has continued to intercept short-range fire coming from Gaza over the past few days. One of the unique things about Iron Dome to date has been its ability to learn as it goes on and become more effective.

Persons: —, Israel, Tamir, Israel Ilia Yefimovich, John Erath, Erath, MAHMUD HAMS, that's, It's, Joe Biden Organizations: Service, Iron Dome, Raytheon Technologies, Rafael Advance, Center for Arms Control, Israel Defense Forces, CNN, ABC, US Locations: Israel's, Israel, Ashdod, Tel Aviv, Jerusalem, Ashkelon, North, Gaza, Al Jazeera, Israeli, Netivot, States, Germany, Ukraine

The war provoked by Hamas' attack on Israel has shaken American politics — and put the primary race in her wheelhouse. Iran has long supported Hamas, though U.S. officials say there's no conclusive evidence yet that Iranian agents were involved in the most recent attack. Ron DeSantis proposed state-level sanctions against Iran for its ongoing support of Hamas. Since before the war, Haley has gone after her rivals on issues such as U.S. support for Ukraine against Russia's invasion and how Washington deals with China. And, in keeping with how he treats rivals, Trump has given Haley a nickname, “Birdbrain."

Persons: CLIVE, — Nikki Haley, peppering, —, Haley, Donald Trump, ”, we’re, wouldn't, Israel, Kevin McCarthy, Joe Biden, South Carolina Sen, Tim Scott, Ron DeSantis, Trump, Vivek Ramaswamy’s, “, ” Ramaswamy, ” Haley, DeSantis, ” DeSantis, Bill Strong, ” Strong, Nikki, doesn’t, Bruce Rauner, Rauner, She’s, Linda Marks, ” Marks, Thomas Beaumont, Elliot Spagat, ___ Meg Kinnard Organizations: Republican, United Nations, Department of Homeland Security, Israel, Saturday, Banking, Gov, Ukraine, Washington, GOP, Lockheed, Raytheon, Boeing, Trump, Disney, ” Former Illinois Gov, doer, Palestinian, Security, The Associated Press, NORC, for Public Affairs Research, Associated Press Locations: Iowa, China, Russia, Israel, U.S, America, Mexico, Iran, Tehran, South Carolina, Florida, Ukraine, Taiwan, ”, Texas, United States, Gaza, Des Moines, Windsor Heights , Iowa, Boone , Iowa, San Diego

For nearly three decades – from fiscal years 1974 to 2002 – Israel was the top recipient of U.S. aid, the longest-standing duration for a top aid recipient dating back to 1946, according to figures from ForeignAssistance.gov. While 2003 to 2020 saw the most aid going to either Iraq or Afghanistan, Israel nevertheless remained a top three aid recipient throughout that time. In 2021, U.S. obligations to Israel amounted to $3.31 billion, a figure that saw Israel returning to the top spot among aid recipients that year. Almost all U.S. aid to Israel recently has been military aid rather than economic aid, in the form of Foreign Military Financing grants – U.S. grants and loans to Israel for acquiring U.S. military equipment and services. Israel saw that rate peak at 30.5% in 1975, but it has slowly been descending since.

Persons: Biden, Gerald R, Ford, Israel, – Israel, Christine Wormuth, Kevin McCarthy’s, Israel’s Rafael, – Organizations: United, Foreign Military Financing, U.S, Congressional Research Service, CRS, Israel Defense Forces, Defense Systems, Raytheon, Raytheon Rafael, Protection Systems, Israel Aerospace Industries, Boeing, Israel, World Bank, Russia, USAID . Missile Locations: Israel, U.S, United States, Egypt, ForeignAssistance.gov, Iraq, Afghanistan, Ukraine, – Israel

CNN —As thousands of rockets have rained down on Israel, the country has been relying once again on the Iron Dome system to protect its citizens. The missile defense system is one of the most important tools in Israel’s arsenal and has saved countless civilian lives over various conflicts in the last decade, analysts say. The Israel Defense Forces said the system boasted a 95.6% success rate during a rocket salvo fired by Islamic Jihad in May. After tests in 2008 and 2009, the first Iron Dome batteries were deployed in 2011. The US government has spent over $1.5 billion on the Iron Dome program, and research related to it as well.

Persons: IHS Jane’s Organizations: CNN, Israel Defense Forces, Islamic Jihad, Development, Dome, Raytheon, Center for Strategic, International Studies, IHS Locations: Israel, Gaza, Washington

☆ How would a government shutdown affect US foreign policy?
▼ + stars: | 2023-09-29 | by ( ) www.reuters.com time to read: +3 min

Some foreign aid programs could also run out of money or have trouble performing their missions. "It would make it harder to do everything that we do to try to advance national security." Contracts awarded before the shutdown would continue, and the Pentagon could place new orders for supplies or services needed to protect national security. SPY AGENCIESThe Central Intelligence Agencies and other intelligence agencies have not publicly shared their plans for a shutdown. But in the past, staff involved in operations, analysis and cyber activities have been deemed critical to national security and ordered to keep working, possibly without pay.

Persons: Joshua Roberts, Biden, Antony Blinken, Lockheed Martin, Patricia Zengerle, Daphne Psaledakis, Mike Stone, Don Durfee, Jonathan Oatis Organizations: REUTERS, Rights, STATE DEPARTMENT U.S, Department of State, State Department, Pentagon, Boeing, Lockheed, Raytheon, National Nuclear Security Administration, Central Intelligence Agencies, Thomson Locations: Washington , U.S, Russia, Ukraine, States, China, U.S

☆ As Ukraine and Russia burn through artillery shells, the US Army is looking for new highly precise rounds to fire from its extra-long-range cannons
▼ + stars: | 2023-09-28 | by ( Michael Peck | ) www.businessinsider.com time to read: +6 min

Artillery has been one of the most heavily used weapons by both Russia and Ukraine. As part of that work, the US Army is investing in precision shells and long-range cannons. AdvertisementAdvertisementThe war in Ukraine has highlighted both the value of precision-guided artillery rounds and how such munitions can be foiled by jamming navigational technologies such as GPS. AdvertisementAdvertisementA developmental test of the Extended Range Cannon Artillery project at US Army Yuma Proving Ground in November 2018. The Biden administration has supplied Ukraine with DPICM, justifying it as a stopgap measure until industry can ramp up production of regular 155-mm rounds, but the decision still drew criticism.

Persons: —, Christopher Brumbelow, DAEM, Biden, Michael Peck Organizations: Artillery, US Army, Service, Army, Munitions, Cannon Artillery, US Army Yuma, US Army Reserve, GPS, US Navy, Raytheon, YouTube, DPICM, Defense, Foreign Policy, Twitter, LinkedIn Locations: Russia, Ukraine, Yuma, McCoy, Wisconsin, Soviet, Kyiv, Washington, Forbes

☆ US government shutdown: What is it and who would be affected?
▼ + stars: | 2023-09-21 | by ( ) www.reuters.com time to read: +7 min

Contracts awarded prior to the shutdown would continue, and the Pentagon could place new orders for supplies or services needed to protect national security. NATIONAL PARKS AND NATURAL RESOURCESIt's not clear how the United States' 63 national parks would be affected. They remained open during the 2018-2019 shutdown, through restrooms and information desks were closed and waste disposal was halted. WHITE HOUSEIn 2018-2019 shutdown, the White House furloughed 1,100 of 1,800 staff in the Executive Office of the President. Some offices, such as the National Security Council, continued at full strength, while others like the Office of Management and Budget were scaled back sharply.

Persons: Kevin Wurm, Lockheed Martin, Donald Trump, Pete Buttigieg, Pell, Andy Sullivan, Pete Schroeder, Howard Schneider, Moira Warburton, Scott Malone, Alistair Bell Organizations: U.S, Capitol, REUTERS, Workers, Pentagon, Boeing, Lockheed, Raytheon, The, National Nuclear Security Administration, FBI, Drug Enforcement Administration, Service, Border Patrol, Coast Guard, Federal Trade, AFFAIRS U.S, National Institutes of Health, National Science Foundation, National Oceanographic, Atmospheric Administration, NASA, Space, Disease Control, Prevention, Food and Drug Administration, Securities, Exchange, Commodities, Futures Trading, Federal Reserve, Federal Deposit Insurance Corporation, Currency, Social Security Administration, Veterans Administration, Federal Emergency Management Agency, Education Department, White, Small Business Administration, National Labor Relations, National Security Council, Management, U.S . Postal, Thomson Locations: Washington , U.S, United States

REUTERS/Valentyn Ogirenko/File Photo Acquire Licensing RightsNEW YORK, Sept 20 (Reuters) - U.S. President Joe Biden plans to announce a $325 million military aid package for Ukraine on Thursday to coincide with a visit to Washington by President Volodymyr Zelenskiy, a U.S. official said on Wednesday on condition of anonymity. The weapons aid package was expected to include the second tranche of cluster munitions fired by a 155 millimeter Howitzer cannon, the U.S official said. Ukraine got an initial tranche of M864 155 millimeter artillery rounds in July 2023. Sending 155 millimeter artillery rounds with cluster munitions has eased the drain on standard "unitary" 155 millimeter shells, which the U.S. also plans to include in this shipment. Since the Russian invasion in February 2022 the U.S. has sent more than $40 billion worth of security assistance to Ukraine.

Persons: unpack, Valentyn, Joe Biden, Volodymyr Zelenskiy, Biden, Steve Holland, Doina Chiacu, David Ljunggren, Bill Berkrot Organizations: U.S, Boryspil, REUTERS, NATO, RTX Corp, Raytheon, High Mobility Artillery Rocket Systems, Lockheed, Presidential, Authority, Capitol, White, Thomson Locations: Ukraine, Kyiv, Washington, Russian

☆ Wells Fargo upgrades L3Harris, says shares could benefit from a potential government shutdown
▼ + stars: | 2023-09-18 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

Investors could benefit from the discount in L3Harris Technologies shares relative to its defense technology peers, according to Wells Fargo. L3Harris Technologies stock has slipped more than 17% from the start of the year. LHX YTD mountain L3Harris Technologies stock. The analyst added that estimates have likely bottomed for L3, and that a government shutdown has typically benefited defense stocks. In the same report, Akers also upgraded Lockheed Martin to equal weight from underweight, and left his price target at $440.

Persons: Wells, Matthew Akers, Akers, Lockheed Martin, Price, Northrop, Booz Allen Hamilton, Harris, — CNBC's Michael Bloom Organizations: L3Harris Technologies, Lockheed, General Dynamics, Northrop Grumman, Raytheon, Booz, CACI, Leidos Holdings, Citigroup Locations: Wells Fargo

☆ Airlines, suppliers set to take a hit from RTX's jet engine issues
▼ + stars: | 2023-09-12 | by ( ) www.reuters.com time to read: +1 min

A Raytheon Technologies (RTX) logo is pictured during the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 19, 2023. REUTERS/Benoit Tessier Acquire Licensing RightsSept 12 (Reuters) - Airlines and aerospace suppliers are expected to take a hit after RTX Corp (RTX.N) said on Monday 600-700 engines on Airbus A320neo jets need to be inspected for quality issues, which could ground hundreds of aircraft through 2026. In July, RTX said microscopic contaminants were found in a powdered metal used in high-pressure turbine discs that are part of the Pratt & Whitney Geared Turbofan (GTF) engine's core. The presence of those contaminants could lead to cracks in the engine. The following airlines and aerospace suppliers expect to be affected:($1 = 0.8015 pounds)($1 = 0.9317 euros)Compiled by Pratyush Thakur in Bengaluru; Edited by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Benoit Tessier, RTX, Pratyush Thakur, Shounak Dasgupta Organizations: Raytheon Technologies, Paris, REUTERS, Airlines, RTX Corp, Airbus, Pratt & Whitney, Thomson Locations: Le Bourget, Paris, France, Bengaluru

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

☆ RTX to take $3 billion charge on Pratt & Whitney engine problem
▼ + stars: | 2023-09-11 | by ( Leslie Josephs | ) www.cnbc.com time to read: +1 min

Model of a Pratt & Whitney GTF engine is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. RTX said Monday that an engine manufacturing flaw forcing accelerated inspections will hit its pretax results this quarter by $3 billion, sending the company's shares down more than 6% in morning trading. The problem stems from flaws with powder metal used to make some of the popular Pratt & Whitney GTF engines. But it said it expects a $1.5 billion hit to cash flow in 2025, bringing that estimate to $7.5 billion from an earlier estimate of $9 billion. Pratt & Whitney has a 51% share in the GTF PW1000 engine program and the cost will be shared with its partners including Germany's MTU.

Persons: Pratt & Whitney, RTX, Whitney Organizations: Pratt &, International Paris Air, Le, Pratt, Airbus, Raytheon Technologies Locations: Le Bourget, Paris, France

☆ Lockheed Martin, but Make It Fashion
▼ + stars: | 2023-09-08 | by ( Jessica Roy | ) www.nytimes.com time to read: +1 min

Major defense contractors like Raytheon, Boeing and Northrop-Grumman have produced baseball hats, T-shirts and water bottles advertising military-grade weapons like ballistic missiles, rocket-propelled grenades and fighter jets. Now, Lockheed Martin, the American defense contractor best known as the world’s largest weapons manufacturer, is allowing its brand to be used in the streetwear business. Through Equity Management Inc, a corporate trademark licensing company in San Diego, Lockheed has been selling its trademark to apparel retailers in both the United States and abroad. A spokesperson for Lockheed Martin confirmed the collaborations were real but declined to comment further. The pieces range from $30 for a T-shirt to $115 for a nylon zip-up jacket, and are aimed at young consumers of South Korea’s growing streetwear market, where oversize cuts and bucket hats reign supreme.

Persons: you’ve, Lockheed Martin Organizations: expos, Raytheon, Boeing, Northrop, Grumman, Lockheed, Equity Management Inc, Doojin Corporation Locations: San Diego, United States, Seoul, South

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