Shares of RTX tumbled 14% Tuesday after the aerospace giant said a manufacturing problem with some of its popular engines will require "accelerated" inspections on about 200 airplane engines.
The problem stems from powdered metal used to make some engine parts, RTX, the parent of airplane engine maker Pratt & Whitney, said during a quarterly earnings call.
RTX, previously known as Raytheon Technologies, trimmed its cash-flow outlook for the year by $500 million to $4.3 billion due to the problem.
"It's going to be expensive," RTX CEO Greg Hayes said during an earnings call.
Pratt & Whitney said that it also expects about 1,000 more engines will have to be removed from airline fleets over the next nine to 12 months.
Persons:
Pratt, Whitney, RTX, Greg Hayes, Airbus didn't
Organizations:
Whitney, Airbus A320neo, Airbus Group, Pratt, Raytheon Technologies, Boeing, Max, Federal Aviation Administration, FAA, Delta Air Lines, Airbus
Locations:
Hamburg, Germany, RTX