EADSY - RTX declines after disclosing Pratt & Whitney engine defect

2023-07-25 07:47:12 ET

RTX’s ( NYSE: RTX ) stock fell 3% to $94 a share in premarket trading after the aerospace and defense company said its Pratt & Whitney unit found a manufacturing defect.

“Pratt & Whitney has determined that a rare condition in powder metal used to manufacture certain engine parts will require accelerated fleet inspection. This does not impact engines currently being produced,” RTX said in its earnings announcement. “The business anticipates that a significant portion of the PW1100G-JM engine fleet, which powers the A320neo, will require accelerated removals and inspections within the next nine to twelve months, including approximately 200 accelerated removals by mid-September of this year.”

The A320neo is a passenger plane made by Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ).

RTX’s revenue in Q2 rose 12% from a year earlier to $18.32 billion, compared with the consensus estimate of $17.7 billion.

Net income rose 10% to $1.9 billion, or $1.29 a share, from $1.72 billion, or $1.16 a share, a year earlier. Earnings adjusted for one-time items were $1.29 a share, beating the consensus estimate of $1.18 a share.

The company this month changed its name from Raytheon Technologies to RTX.

More about RTX

• Raytheon, Northrop secure DARPA order for additional HAWC vehicles
• Safran to buy Collins Aerospace flight control unit in $1.8B deal

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