Raytheon Technologies Corp., parent of ÃÛèÖÖ±²¥-based Raytheon Missiles & Defense, on Tuesday reported third-quarter profit of $1.4 billion, beating Wall Street forecasts as its commercial aviation business began to rebound from a pandemic slump.
But the company’s third-quarter revenue fell short of analysts’ expectations, as the U.S. exit from Afghanistan and pandemic disruptions weighed on sales, and Raytheon shares closed at $89.16, down $2.14 or more than 2% in trading on the New York Stock Exchange.
On a conference call with analysts, Raytheon Technologies Chairman and CEO Greg Hayes said the company expects the U.S. withdrawal from Afghanistan will cost the company $75 million in sales this year, which he called “not huge, but meaningful.â€
Hayes said supply-chain disruptions and staffing issues related to the COVID-19 pandemic will cost the company some $275 million this year but the company expects to recover that in coming quarters.
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“The fact is, we haven’t been able to bring enough people on board to generate the revenue that we were expecting,†said Hayes.
The Waltham, Massachusetts-based company posted quarterly net income of 93 cents, which after adjustments for one-time gains and costs came to $1.26 per share.
The results topped Wall Street expectations for adjusted earnings of $1.07 per share, according to average estimates of analysts surveyed by Zacks Investment Research.
The aerospace and defense company posted revenue of $16.2 billion in the third quarter, missing analysts’ average forecast of $16.5 billion.
Raytheon Technologies increased its full-year outlook, pegging earnings in the range of $4.10 to $4.20 per share, with revenue expected to be $64.5 billion.
The company’s third-quarter results included $496 million in accounting adjustments and non-recurring charges related to its announced acquisitions of global aircraft-tracking company FlightAware and space-electronics maker SEAKR Engineering.
Raytheon Missiles & Defense saw its third-quarter sales rise 5% to $3.9 billion and its operating profit increase to $490 million, up 9% from third-quarter 2020.
Higher third-quarter sales at the ÃÛèÖÖ±²¥-based unit were driven mainly by growth on an international National Advanced Surface to Air Missile System program and on the Advanced Medium-Range Air-to-Air Missile program, the company said. Major contract bookings included $432 million to provide Patriot Guidance Enhanced Missiles for a foreign ally and $358 million for Evolved Sea Sparrow Missiles for the U.S. Navy and international customers.
Raytheon’s Collins Aerospace, which makes an array of aircraft components, had third-quarter operating income of $480 million and 2021 adjusted sales of $4.6 billion, up 7% versus the prior year as a 38% increase in commercial aftermarket sales more than offset declines in sales of new commercial equipment and military products.
Engine maker Pratt & Whitney posted third-quarter sales of $4.7 billion, up 35% from last year, and swung to an adjusted operating profit of $189 million after losing $43 million in third-quarter 2020.
Third-quarter sales at Raytheon Intelligence & Space were virtually flat from a year ago at $3.7 billion, while adjusted operating profit rose 12% to $391 million, mainly on productivity gains.
Contact senior reporter David Wichner at dwichner@tucson.com or 520-573-4181. On Twitter: @dwichner. On Facebook: