raytheon-technologies-gives-airlines-new-insights-into-system-health-with-connected-galley-inserts

Raytheon Technologies gives airlines new insights into system health with connected galley inserts

 

Collins Aerospace, a Raytheon Technologies (NYSE: RTX) business, is introducing a cost-effective wireless connectivity solution for airplane galley inserts (the appliances used to prepare inflight food and beverage), providing operational efficiencies and cost savings for airlines while also supporting improved passenger service.

Once connected, the galley inserts automatically transmit data in real-time from the aircraft to maintenance operations, differentiating between specific unit component issues and aircraft interface issues, like faulty water or power supplies. This data provides the information needed to quickly identify unit faults, decreasing the time spent troubleshooting and reducing occurrences of misdiagnosing unit malfunctions.

In addition to the diagnostic benefits, when implemented across broader fleets the data gathered could ultimately predict future failures before they happen, allowing airlines to better plan, mitigate faults before they occur and more accurately assess spare and repair inventory needs.

“Collins’ connected galley inserts solution will utilize artificial intelligence and big data to accurately analyze collected information to make informed decisions that best suit their operations – without excessive investment or aircraft modification time,” said Alison Davidson, vice president and general manager of Cabin Products for Collins Aerospace. “This unique solution is made possible by combining the expertise, resources and capabilities of our Connected Aviation Solutions business with our Interiors cabin products to provide airline customers consistent, reliable and actionable data.”

Implementation is simple as the connected solution can be installed without aircraft modifications and seamlessly integrates with existing Collins galley inserts – avoiding aircraft downtime as well as the need to replace existing units.

The wireless functionality integrates easily with existing inflight Wi-Fi networks, requiring a minimal amount of data to transmit information to maintenance staffs and crew members, without overwhelming network services.

Collins Aerospace’s wirelessly connected galley inserts solution will be on display at the Aircraft Interiors Expo in Hamburg, Germany in Hall B5 at stand 5B30.

raytheon-technologies-reports-fourth-quarter-2020-results,-announces-2021-outlook

Raytheon Technologies Reports Fourth Quarter 2020 Results, Announces 2021 Outlook

 

Raytheon Technologies Corp. (NYSE: RTX) reported fourth quarter 2020 and full year 2020 results, and announced its 2021 outlook.

Fourth quarter 2020

  • Sales of $16.4 billion; Adjusted sales of $16.6 billion
  • GAAP EPS from continuing operations of $0.10, which included $0.64 of net significant and/or non-recurring charges and acquisition accounting adjustments
  • Adjusted EPS of $0.74
  • Operating cash flow from continuing operations of $1.4 billion; Free cash flow of $747 million
  • Achieved $1.8 billion in cash conservation and $700 million in cost reduction actions
  • Robust defense backlog of $67.3 billion

Outlook for full year 2021

  • Sales of $63.4 – $65.4 billion
  • Adjusted EPS of $3.40 – $3.70
  • Free cash flow of approximately $4.5 billion
  • Authorized a $5 billion share repurchase program in December; plan to repurchase at least $1.5 billion of shares in 2021

“We closed the year on a strong note with fourth quarter sales, EPS and free cash flow exceeding our expectations, as we delivered on our customer commitments and drove strong execution against our cost and cash actions,” said Raytheon Technologies CEO Greg Hayes. “As a result, we delivered $2.3 billion in pro forma free cash flow for the year which includes $800 million of discretionary pension contributions.”

Hayes continued, “In 2021, our strategy of harnessing next-generation technologies across our resilient and balanced portfolio will continue to drive differentiated value for customers and advance our industry leadership for years to come. Combined with our recent structural actions, we’re well positioned for sustainable growth and profitability in 2021 and beyond, and remain committed to returning $18 to $20 billion to shareowners in the four years following the merger.”

Raytheon Technologies reported fourth quarter sales of $16.4 billion and adjusted sales of $16.6 billion. GAAP EPS from continuing operations was $0.10 and included $0.64 of net significant and/or non-recurring charges and acquisition accounting adjustments. This includes $0.29 of acquisition accounting adjustments primarily related to intangible amortization, $0.29 for an adjustment associated with certain Middle East contracts which are subject to regulatory approval, $0.05 of charges due to the current economic environment primarily driven by the COVID-19 pandemic, and $0.05 of restructuring, which were partially offset by $0.04 of other items. Adjusted EPS was $0.74.

The company recorded net income from continuing operations in the fourth quarter of $146 million, which included $976 million of net significant and/or nonrecurring charges and acquisition accounting adjustments. Adjusted net income was $1,122 million. Operating cash flow from continuing operations in the fourth quarter was $1.4 billion, which includes $800 million of discretionary pension contributions. Capital expenditures were $623 million, resulting in free cash flow of $747 million. Free cash flow included approximately $360 million of merger costs, restructuring and tax payments on divestitures. This quarter’s performance included approximately $1.8 billion of cash conservation and $700 million of cost savings actions. Full year cash conservation actions were approximately $4.7 billion and cost savings were approximately $2.0 billion, exceeding the cash conservation and achieving the cost reduction commitments made early in 2020.

Summary Financial Results – Continuing Operations

($ in millions, except EPS)

4th Quarter 2020

Reported

Sales

$

16,419

Net Income

$

146

EPS

$

0.10

Adjusted

Sales

$

16,583

Net Income

$

1,122

EPS

$

0.74

Operating Cash Flow from Continuing Operations

$

1,370

Free Cash Flow

$

747

See “Use and Definitions of Non-GAAP Financial Measures” below for information regarding non-GAAP financial measures.

Bookings and Orders
Backlog at the end of the fourth quarter was $150.1 billion, of which $82.8 billion was from commercial aerospace and $67.3 billion was from defense.

Notable defense bookings during the quarter included:

  • $947 million of classified bookings at Raytheon Intelligence & Space (RIS)
  • $354 million for a classified program at Raytheon Missiles & Defense (RMD)
  • $305 million for F-119 spare parts at Pratt & Whitney
  • $282 million for F-135 sustainment services at Pratt & Whitney
  • $240 million for StormBreaker production Lot 6 primarily for the U.S. Air Force at RMD
  • $236 million for the production of Silent Knight radar systems and spares for the U.S. Special Operations Command at RIS
  • $234 million for Tube-launched, Optionally-tracked, Wireless-guided missiles (TOW) Multi-Year 4 at RMD
  • $217 million for the AN/TPY-2 radar sustainment program for the Missile Defense Agency (MDA) at RMD

Segment Results
The company’s reportable segments are Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD). In connection with the merger, the company revised its segment presentation. Prior periods have been revised to reflect the current presentation. Refer to the accompanying tables for further details.

Collins Aerospace

4th Quarter

Twelve Months

($ in millions)

2020

2019

% Change

2020

2019

% Change

Reported

Sales

$

4,374

$

6,444

(32)

%

$

19,288

$

26,028

(26)

%

Operating Profit

$

11

$

1,009

(99)

%

$

1,466

$

4,508

(67)

%

ROS

0.3

%

15.7

%

7.6

%

17.3

%

Adjusted

Sales

$

4,388

$

6,444

(32)

%

$

19,424

$

26,028

(25)

%

Operating Profit

$

89

$

1,061

(92)

%

$

1,470

$

4,849

(70)

%

ROS

2.0

%

16.5

%

7.6

%

18.6

%

Note: Prior periods have been revised to reflect the current segment presentation which excludes acquisition accounting adjustments and includes additional corporate expense allocations.

Collins Aerospace had fourth quarter 2020 adjusted sales of $4,388 million, down 32 percent versus the prior year. Commercial OE was down 41 percent and commercial aftermarket was down 48 percent, while military was up 1 percent. Excluding the impact of the Military GPS and Space ISR divestitures, military was up 7 percent in the quarter. The decrease in commercial sales was driven primarily by the current environment which has resulted in lower flight hours, aircraft fleet utilization and commercial OEM deliveries, as well as the impact of the 737 MAX. This was slightly offset by higher sales across key military platforms.

Collins Aerospace recorded adjusted operating profit of $89 million in the quarter, down 92 percent versus the prior year. The decrease in adjusted operating profit was driven by lower commercial aerospace OEM and aftermarket sales volume, as well as the impact of the Military GPS and Space ISR divestitures. This was partially offset by cost reduction actions and continued synergy capture.

Pratt & Whitney

4th Quarter

Twelve Months

($ in millions)

2020

2019

% Change

2020

2019

% Change

Reported

Sales

$

4,465

$

5,645

(21)

%

$

16,799

$

20,902

(20)

%

Operating Profit

$

33

$

354

(91)

%

$

(564)

$

1,801

(131)

%

ROS

0.7

%

6.3

%

(3.4)

%

8.6

%

Adjusted

Sales

$

4,496

$

5,645

(20)

%

$

17,224

$

20,902

(18)

%

Operating Profit

$

105

$

470

(78)

%

$

426

$

1,934

(78)

%

ROS

2.3

%

8.3

%

2.5

%

9.3

%

Note: Prior periods have been revised to reflect the current segment presentation which excludes acquisition accounting adjustments and includes additional corporate expense allocations.

Pratt & Whitney had fourth quarter 2020 adjusted sales of $4,496 million, down 20 percent versus the prior year. Commercial OE was down 46 percent and commercial aftermarket was down 32 percent, while military was up 18 percent. The decrease in commercial sales was primarily due to a significant reduction in shop visits and related spare part sales, and commercial engine deliveries principally driven by the current environment. This was slightly offset by higher F-135 engine sales and aftermarket growth across key military platforms.

Pratt & Whitney recorded adjusted operating income of $105 million in the quarter, down 78 percent versus the prior year. The decrease in adjusted operating profit was primarily driven by lower commercial aerospace sales volume and unfavorable mix. This was partially offset by cost reduction actions and gross margin drop through on higher military volume.

Raytheon Intelligence & Space

4th Quarter

Twelve Months

($ in millions)

2020

2020

Reported

Sales

$

3,853

$

10,841

Operating Profit

$

355

$

1,014

ROS

9.2

%

9.4

%

Adjusted

Sales

$

3,853

$

10,841

Operating Profit

$

355

$

1,014

ROS

9.2

%

9.4

%

Note: Twelve months 2020 reported and adjusted results include RIS since the merger date of April 3, 2020. Reported and adjusted numbers do not include RIS pre-merger stub period from March 30, 2020 to April 2, 2020 which had an estimated $200 million of sales and $20 million of operating profit.

RIS had fourth quarter adjusted sales of $3,853 million and adjusted operating profit of $355 million.

Raytheon Missiles & Defense

4th Quarter

Twelve Months

($ in millions)

2020

2020

Reported

Sales

$

4,276

$

11,660

Operating Profit

$

40

$

890

ROS

0.9

%

7.6

%

Adjusted

Sales

$

4,395

$

11,660

Operating Profit

$

586

$

1,406

ROS

13.3

%

12.1

%

Note: Twelve months 2020 reported and adjusted results include RMD since the merger date of April 3, 2020. Reported and adjusted numbers do not include RMD pre-merger stub period from March 30, 2020 to April 2, 2020 which had an estimated $200 million of sales and $25 million of operating profit.

RMD had fourth quarter adjusted sales of $4,395 million and adjusted operating profit of $586 million.

Raytheon Technologies 2021 outlook
Outlook for full year 2021

  • Sales of $63.4 – $65.4 billion
  • Adjusted EPS of $3.40 – $3.70
  • Free cash flow of approximately $4.5 billion
  • Plan to repurchase at least $1.5 billion of shares in 2021

Outlook for Q1 2021

  • Sales of $14.8 – $15.4 billion
  • Adjusted EPS of $0.70 – $0.75