Raytheon cuts revenue forecast on impact from Russia business suspension
2022.04.26 15:37
FILE PHOTO: The Raytheon stand is seen at the 53rd International Paris Air Show at Le Bourget Airport near Paris, France June 21, 2019. REUTERS/Pascal Rossignol/File Photo
By Nilanjana Basu and Mike Stone
-Aerospace and defense firm Raytheon Technologies (NYSE:RTX) Corp lowered its full-year revenue forecast on Tuesday, hurt by the cessation of its activities in Russia.
Shares were flat in pre-market trading at $99.50.
Russia has been hit by Western sanctions over its invasion of Ukraine, leading to a large number of U.S. companies severing ties with Moscow, and the aviation industry is among the sectors severely impacted.
Raytheon (NYSE:RTN)’s Chief Financial Officer Neil Mitchill told Reuters that lowering the 2022 revenue guidance by $750 million “was strictly related to direct and indirect sales that are no longer allowed because of the global sanctions imposed on Russia.”
Raytheon expects full-year revenue to be between $67.75 billion and $68.75 billion, lower than its previous forecast of $68.5 billion to $69.5 billion.
About three quarters of that lost $750 million revenue was direct sales of commercial equipment to Russia, Mitchill said, and the remainder was engine parts that would have been sold principally by Pratt & Whitney Canada.
However, the company said revenue rose 3% to $15.72 billion in the quarter, driven by a recovery in air travel demand, which boosted sales of its aerospace products and services.
Raytheon posted a net income of $1.08 billion, or 72 cents per share, in the quarter ended March 31, compared with $753 million, or 50 cents per share, last year.
