Massachusetts-based Raytheon Technologies has stopped all business operations in Russia, hurting Pratt & Whitney’s financial projections for this year.
After ceasing all business operations in Russia, Raytheon Technologies CEO Gregory Hayes said the company was adjusting its financial outlook as a result. The company reported first-quarter net income of $1.1 billion, or 74 cents per share, Tuesday, up 43% from the year-ago period.
“We’re done in Russia, full stop. We actually — we had a joint venture there where we built commercial heat exchangers for Boeing and Embraer. We closed that facility. We sold our share. We aren’t going back,” Hayes said during an earnings call Tuesday. “I think this is, as they say, crossing the Rubicon here as far as we’re concerned for Russia. We’re not going to support the airlines. We’re not going to support the development programs. We’re not going to support any Russian customers going forward, while this is going on.”
Raytheon reduced its full-year sales outlook by $750 million; half of that was attributed to East Hartford jet-engine maker Pratt & Whitney’s, the other half from Collins Aerospace.
Hayes said Russia accounts for about 4% of the company’s global revenue and about 1.5% of its total sales, amounting to $900 million a year.
During Tuesday’s earnings call, Raytheon Vice President of Investor Relations Jennifer Reed said Pratt’s first-quarter sales of $4.5 billion were up 12% on an adjusted basis and up 13% on an organic basis, driven primarily by the continued recovery of the commercial aerospace industry.
Pratt & Whitney’s commercial aftermarket sales were up 37% in the quarter. Commercial original equipment sales were up 12% and military business sales were down 11%.
Reed said Pratt’s adjusted operating profit of $308 million was up $268 million from the prior-year.
