Collins Aerospace parent Raytheon Technologies reports third-quarter sales of $17 billion

Despite a cluster of extremely persistent industrywide challenges, the CEO of Collins Aerospace’s parent company, Raytheon Technologies, said that “Our future looks absolutely bright for RTX.”

The Boston-based aerospace and defense company reported third-quarter sales of $17 billion — up 5 percent from the previous year — including 6 percent in organic growth.

The sales total, however, for the full year of 2022 now is projected to be down, from a range of $67.75 billion to $68.75 billion to a newly anticipated range of $67 billion to $67.3 billion, according to Raytheon’s results.

Greg Hayes, head of Raytheon, cited during Tuesday morning’s analysts call to discuss third-quarter earnings the ongoing headwinds of inflation, labor shortages and supply chain issues, plus the unexpected trials caused by Russia’s war in Ukraine.

“It’s been a tough year,” he added, pointing out Raytheon overall has hired 27,000 new employees so far this year — but the company could use “10,000 more.”

Hayes said he would be meeting with U.S. Department of Defense officials Thursday to discuss how workforce and materials shortages are hindering the industry, even in a time of strong demand.

“I think it’ll be most of 2023 before we get out of the woods” in terms of the supply chain struggles, he said in response to an analyst’s question during the earning call.

As for the Russia-Ukraine war, Raytheon’s report indicated a loss of $141 million related to sanctions for the first nine months of the year for Collins Aerospace alone, for example.

But, Hayes stressed, for the most part “those are short-term issues.”

Anticipated earnings per share for 2022, Hayes continued, would rise by “a dime” — from a range of $4.60 to $4.80 to a range of $4.70 to $4.80.

Hayes and Neil Mitchill, Raytheon sales and marketing vice president, and Hayes both commented on how they expected a boost from what has been a “strong summer (air) travel season.”

Commercial air travel “remains robust and we expect to be at 90 percent of 2019 levels as we exit this year,” Mitchill said.

Among its numerous defense bookings for the third-quarter, Raytheon signed a $1 billion contract to develop the Hypersonic Attack Cruise Missile for the U.S. Air Force.

Collins Aerospace

Collins Aerospace was a particularly strong highlight for the company’s July-through-September period, with a jump of 11 percent in sales, at $5.1 million. Its adjusted operating profit was up 31 percent, to $630 million.

Moreover, its commercial aftermarket sales climbed 25 percent compared to 2021, and its commercial original equipment sales rose 16 percent.

Collins Aerospace also was awarded a contract valued at up to $583 million for production of the Mounted Assured Positioning, Navigation and Timing System, known in the defense industry as MAPS.

It is considered “the latest generation” of such systems for manned and unmanned ground vehicles, according to Raytheon’s third-quarter statement.

In addition, “revised pricing” for its products would begin in 2023, Mitchill said.

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