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RTX profit jumps 20% on aviation strength, military demand
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RTX profit jumps 20% on aviation strength, military demand
Apr 23, 2024 4:09 AM

April 23 (Reuters) - Aerospace and defense major RTX

on Tuesday reported a 20% jump in its first-quarter

profit, helped by robust commercial aftermarket business and

military equipment demand.

The Arlington, Virginia-based company reported net income of

$1.71 billion, or $1.28 per share, for the quarter ended March

31, compared with $1.43 billion, or 97 cents per share, a year

earlier.

The aftermarket business gained as airlines had to extend

the service life of aircraft to keep up with the recovery in air

travel amid the limited availability of new commercial planes.

Pratt and Whitney, a subsidiary of RTX, reported a sales

rise of 23% amid the ongoing inspection drive in GTF engines.

"We are making progress on ... our GTF fleet management

plans, which remain on track," Chief Operating Officer Chris

Calio said in a statement.

Following a quality crisis in some GTF engines last year,

RTX estimated grounding of 350 jets annually from 2024 through

2026, outlining $6 billion to $7 billion in recall cost.

Driven by strong demand for both original equipment and

aftermarket service, sales at RTX's Collins Aerospace unit,

which makes avionics and aerospace components, rose 9%.

Operating profit at RTX's defense arm, Raytheon, jumped 74%,

aided by its in-demand Patriot defense system, and gains from

the divestiture of the cybersecurity, intelligence, and services

business.

During the quarter, Raytheon booked a $1.2 billion order for

Germany Patriot production.

International demand for U.S. weaponry is soaring following

Russia's invasion of Ukraine, the specter of Chinese aggression,

and conflicts in the Middle East, with countries striking and

negotiating new deals to buy arms and looking to speed up

existing contracts.

RTX's quarterly revenue jumped 12% to $19.3 billion.

The company reaffirmed its 2024 per-share profit forecast of

$5.25 to $5.40 on sales of $78 billion to $79 billion.

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