(Reuters) – Raytheon Technologies Corp reported a 4% rise in quarterly adjusted profit on Tuesday, as the aerospace company benefited from strong demand for jet engine spare parts and services.
A stronger-than-expected recovery in travel has forced airlines to keep older jets in service for a longer period, helping companies such as Raytheon through sales of spare parts and other aftermarket services.
Raytheon’s Pratt & Whitney business, which makes engines for the Airbus A320neo family of aircraft, reported a 41% jump in adjusted operating profit and a 15% rise in adjusted sales in the first quarter.
Supply chain snags and labour shortages, however, continued to weigh on the company’s missiles and defense business, which reported a 13% fall in adjusted operating profit in the quarter through March.
Overall, Raytheon quarterly sales rose 10% to $17.21 billion and adjusted profit rose to $1.79 billion from $1.72 billion a year earlier.
“Continued global airline travel and defense systems demand point to sustained top line growth,” Raytheon Chief Executive Greg Hayes said.
On a per share basis, the company posted adjusted profit of $1.22. Analysts on average were expecting a profit of $1.13 per share, as per Refinitiv data, but it was not immediately clear if the numbers were comparable.
The Arlington, Virginia-based company reaffirmed its annual sales outlook of $72 billion to $73 billion and adjusted profit per share forecast of $4.90 to $5.05.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Vinay Dwivedi)
