RTX plans to buy back an additional $10 billion in stock to take advantage of the sharp slide in its share price since disclosing quality problems with its latest jetliner engine during the summer.
The world’s biggest aerospace and defense company by sales reported a loss for the third quarter as it booked a charge to cover compensation and repair of geared turbofan engines that will require the grounding of hundreds of Airbus jets next year.
RTX’s market value has fallen by more than $30 billion since the problems were disclosed in July, and Chief Financial Officer Neil Mitchill said it is taking advantage of the low price to repurchase shares.
Mitchill said the cost and repair timelines for engines remained unchanged from its guidance in September.
Shares of RTX, previously known as Raytheon Technologies, jumped more than 6%.
Here’s more detail on how RTX did in the third quarter:
RTX reported a loss of $984 million for the third quarter. Excluding the engine charge, per-share earnings of $1.25 beat the consensus among analysts polled by FactSet by 3 cents.
Adjusted sales rose 12% to $18.95 billion in the quarter, topping analysts’ estimates, with backlog rising to a record $190 billion after a third consecutive quarter of double-digit growth.
RTX also agreed to sell its cybersecurity and intelligence business for $1.3 billion to an undisclosed customer.
Excerpt from WSJ
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