East Hartford-based Pratt & Whitney saw a 16% rise in revenue in the third quarter, but the jet-engine maker’s profit margin was cut by the impact of tariffs.
Parent company RTX said tariff costs at Pratt amounted to $90 million for the quarter, with a similar number at another RTX subsidiary, Collins Aerospace.
Still, Pratt reported $8.4 billion in third-quarter revenue, and an operating profit of $751 million, up 35% from the year-ago period.
On a conference call Tuesday, RTX Chief Financial Officer Neil Mitchill told analysts both companies are working to get more products certified under the US-Mexico-Canada agreement, which would see them get preferential tariff treatment.
“The team’s doing a great job making that a smaller number as we move forward,” said Neil. “A number of mitigations have been identified.”
However, he warned that tariffs will continue to take a bite out of profits in the fourth quarter.
RTX overall reported third-quarter earnings of $1.92 billion in the quarter, or $1.41 per share, up 30% from a year earlier.