Tuesday, April 16, 2024
HomeFinanceRTX to take $3 billion charge on Pratt & Whitney engine problem

RTX to take $3 billion charge on Pratt & Whitney engine problem


Model of a Pratt & Whitney GTF engine is displayed at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 20, 2023. 

Benoit Tessier | Reuters

RTX said Monday that an engine manufacturing flaw forcing accelerated inspections will hit its pretax results this quarter by $3 billion, sending shares lower in premarket trading.

The problem stems from flaws with powder metal used to make some of the popular Pratt & Whitney GTF engines. That issue is forcing inspections on hundreds of engines ahead of schedule, depriving airlines of some aircraft during a travel rebound in the pandemic’s wake.

The engines power many of the popular Airbus A320neo planes and others.

RTX, formerly known as Raytheon Technologies, reaffirmed its adjusted earnings estimates of $4.95 to $5.05 a share for 2023. But it said it expects a $1.5 billion hit to cash flow in 2025, bringing that estimate to $7.5 billion.

This story is developing. Please check back for updates.



This story originally appeared on CNBC

RELATED ARTICLES
- Advertisment -

Most Popular

Recent Comments