Raytheon's strong profit offset a slight shortfall in sales.
Shares of Raytheon Technologies Corp., the maker of the Stinger and Javelin missiles, rose Tuesday, after the company posted fourth-quarter profit that more than doubled from the year-earlier period, offsetting a slight miss on sales.
Chief Executive Greg Hayes said the Russian invasion of Ukraine had boosted demand for its products as governments raise defense budgets. The U.S. government said in December it would offer Raytheon’s Patriot air and missile defense system to Ukraine to help it defend itself against Russian missiles.
In its aerospace segment, Raytheon RTX is benefiting from the recovery in travel, that has seen demand climb at a time when airlines are facing supply chain issues and flying planes for longer, boosting demand for parts and aftermarket services. The company is expecting the lifting of COVID restrictions in China to boost traffic levels, with China representing about 14% of global air traffic, he said.
“While we are broadly beginning to see our supply chain improve, it’s not yet at the levels we need. We are assuming a recovery as we move into the back half of the year,” said Calio. “Given that Raytheon has exposure to pretty much every market in aerospace & defense, its outlook neatly encapsulates the broad themes that we expect to play out this year,” Stallard wrote in a note to clients.
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