RTX To Incur $3B Pre-Tax Charge In Q3 Due To Pratt & Whitney Engine Problem; Stock Slides
Portfolio Pulse from Shivani Kumaresan
RTX Corp (NYSE:RTX) announced that it will incur a pre-tax operating profit impact of between $3 billion and $3.5 billion over the next several years due to a problem with the Pratt & Whitney GTF fleet. This includes a $3 billion pre-tax charge in Q3. The company also reduced its FY23 sales outlook from $73 billion - $74 billion to $67.5 billion - $68.5 billion. Despite this, RTX remains confident in its ability to return $33 - $35 billion in capital to its shareholders through 2025.
September 11, 2023 | 1:22 pm
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RTX Corp is expected to incur a significant pre-tax charge due to a problem with the Pratt & Whitney GTF fleet. This has led to a reduction in the company's FY23 sales outlook.
The announcement of a significant pre-tax charge due to a problem with the Pratt & Whitney GTF fleet is likely to negatively impact RTX Corp's stock price in the short term. The company's reduction in its FY23 sales outlook further adds to this negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100