Shares of RTX Corp.
RTX,
formerly known as Raytheon Technologies, sank 4.4% toward a near two-year low in premarket trading Monday, after the defense contractor lowered its sales outlook as a result of the “rare condition in power metal” used to make certain engine parts. The company said because of the powder metal condition, about 600 to 700 Pratt & Whitney engines will be removed for shop visits, with the most being removed in 2023 and early 2024. The company expects to take a $3 billion charge in the third quarter as a result. “The financial charges related to the powder metal manufacturing issue, that will be recognized this quarter, reflect the impact of this matter and how we expect to support our customers,” said Chief Financial Officer Neil Mitchill. RTX said it now expects reported 2023 sales of $67.5 billion to $68.5 billion, down from previous guidance of $73.0 billion to $74.0 billion, while reiterating its outlook for adjusted earnings per share of $4.95 to $5.05.
