Jan 28 (Reuters) - Aerospace and defense major RTX
posted a rise in quarterly profit on Tuesday, as demand
for its aircraft parts and repair services benefited from
airlines flying older, maintenance-intensive planes to cope with
a jet shortage.
Supply chain snags and the resulting lack of certain
components are hampering production of new commercial jets,
forcing airlines to keep their aged fleets in service to meet
booming demand for travel.
Taking the shine off RTX's strong quarter, however, the
company's 2025 adjusted sales forecast of between $83 billion
and $84 billion fell short of analysts' average estimates of
$84.47 billion, according to data compiled by LSEG.
Though the incoming administration led by U.S. President
Donald Trump is likely to increase defense spending, investors
are concerned about potential budget cuts under the newly formed
Department of Government Efficiency (DOGE) headed by billionaire
Elon Musk.
Some analysts have underplayed those concerns, arguing
Trump's recent comments on acquiring Greenland and taking over
the Panama Canal should support the case for increased defense
spending.
RTX's Pratt and Whitney unit, which produces engines for
Airbus' A320neo jets and competes with CFM International, posted
a sales rise of 18% on a profit of $504 million for the fourth
quarter.
The unit is currently navigating an issue with its Geared
Turbofan (GTF) engines and is conducting an inspection drive for
potentially flawed components, leading to the grounding of
hundreds of planes in recent months.
Revenue at the company's aerospace and avionics arm Collins
Aerospace rose 6% in the reported quarter.
Raytheon, RTX's defense unit, reported a 36% rise in
operating profit due to robust demand for its Patriot defense
system used on the battlefield in Ukraine to counter missile
threats from Russia.
A prolonged Russia-Ukraine war and ongoing conflicts in the
Middle East have led countries to bolster their defense
spending, stoking higher demand for arms and weaponry.
The Arlington, Virginia-based company reported a 9% rise in
quarterly total revenue to $21.62 billion.
It reported a net income of $1.48 billion, or $1.10 per
share, compared with $1.43 billion, or $1.05 a share, a year
earlier.
(Reporting by Utkarsh Shetti in Bengaluru and Mike Stone in
Washington; Editing by Devika Syamnath)