Formerly known as RTX (symbol: RTX).
“Hit [is] Worse than expected,” Vertical Research Partners analyst Rob Stallard wrote in a Monday report. “Customer compensation [is] “The biggest expense.”
RTX stock fell 7.9% on Monday, but
S&P 500
And
Dow Jones Industrial Average
It increased by 0.7% and 0.3%.
It is a powder metal Process To make metal parts. It’s normal. Companies have the option of baking, forging, machining, or forming parts from metal powder. Choosing a process depends on the physical properties a part needs.
The powder metal issue extends to maintenance and repair issues for some of the RTX engines built by the Pratt & Whitney division. Between 2023 and 2026, between 2023 and 2026, 600 to 700 engines will be removed for shop visits, the company added in Monday’s announcement. Most visits will take place in 2023 and early 2024.
RTX CEO Greg Hayes said in a news release: “We are focused on solving the problems that arise from powder metallurgy.” “We never compromise on the safe operation of our fleet, which is why the Pratt & Whitney team has worked diligently to develop the fleet management plan. At the same time, we recognize that this is an extremely difficult situation for our customers, and we are proactively taking steps to support and minimize the operational impact on them.”
Along with the payment, RTX updated the manual. Adjusted full-year earnings per share guidance is the same in the range of $4.95 to $5.05. Free cash flow guidance remained at $4.3 billion. Sales guidance was cut midway to $68 billion from $73.5 billion due to the powder metal issue.
As of Monday’s trading, RTX stock is down 12 percent over the past 12 months. Engine trouble weighed on stocks. RTX stock fell 10% at the end of July after the engine problem was announced, and has fallen another 4% since then.
The S&P 500 is down 2% over the same period.
Boeing
( BA ) stock was down about 2%. Shares of
General Electric
( GE ), another aircraft engine maker, is about 1%.
Write to Al Root at [email protected]
