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RTX Reports 2023 Results and Announces 2024 Outlook

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RTX (NYSE: RTX) reported fourth quarter 2023 results and announces 2024 outlook.
Fourth quarter 2023

Reported sales of $19.9 billion, up 10 percent versus prior year
Adjusted sales* of $19.8 billion, up 10 percent versus prior year
GAAP EPS from continuing operations of $1.05 included $0.29 of acquisition accounting adjustments and a $0.05 benefit from restructuring and net significant and/or non-recurring items
Adjusted EPS* of $1.29, up 2 percent versus prior year
Operating cash flow from continuing operations of $4.7 billion; Free cash flow* of $3.9 billion
Company backlog of $196 billion; including $118 billion of commercial and $78 billion of defense
Repurchased $10.3 billion of RTX shares

Full year 2023

Reported sales of $68.9 billion, up 3 percent versus prior year, reflecting the impact of the previously disclosed Pratt powder metal matter
Adjusted sales* of $74.3 billion, up 11 percent versus prior year
GAAP EPS of $2.23, down 36 percent versus the prior year, reflecting the impact of the previously disclosed Pratt powder metal matter
Adjusted EPS* of $5.06, up 6 percent versus the prior year
Operating cash flow from continuing operations of $7.9 billion; Free cash flow* of $5.5 billion
Achieved approximately $295 million of incremental RTX gross synergies
Repurchased $12.9 billion of RTX shares

Outlook for full year 2024

Sales of $78.0 – $79.0 billion
Adjusted EPS* of $5.25 – $5.40
Free cash flow* of approximately $5.7 billion

2025 RTX financial commitments

Updates 2020 to 2025 adjusted annual sales* growth to 5.5 to 6.0 percent1, down from 6.0 to 7.0 percent
Updates 2020 to 2025 adjusted segment margin* expansion to 500 to 550 basis points1, down from 550 to 650 basis points
Reaffirms 2025 free cash flow* commitment of $7.5 billion
Reaffirms 2025 capital return commitment of $36 to $37 billion through 2025

“RTX reported solid full-year results, delivering 11 percent organic sales* growth and $5.5 billion in free cash flow* for the year, exceeding our expectations” said RTX Chairman and CEO Greg Hayes. “Across our portfolio, we supported the continued recovery in commercial aerospace and provided critical platforms and advanced technologies to our customers, achieving $95 billion in new awards and ending the year with a record backlog of $196 billion. I am extremely proud of what RTX has been able to accomplish, and I’m even more excited to see the innovations that RTX will deliver in the future.”
“RTX is beginning 2024 with strong momentum and we are projecting another year of strong sales growth and continued segment margin expansion,” said RTX President and COO Chris Calio. “The financial and operational outlook of our GTF fleet management plans remain consistent from October and continues to be a top priority as we focus on driving performance across all three businesses to support our customers and deliver shareowner value. With the execution of our $10 billion accelerated share repurchase program, we’ve delivered over $29 billion to shareowners since the merger, achieving significant progress toward our capital return commitment of between $36 – $37 billion through 2025.”
Fourth quarter 2023RTX reported fourth quarter sales of $19.9 billion, up 10 percent over the prior year, which included a benefit of $0.1 billion related to a customer settlement. On an adjusted basis, sales* were $19.8 billion, up 10 percent over the prior year. GAAP EPS from continuing operations of $1.05 was up 9 percent versus the prior year, and included $0.29 of acquisition accounting adjustments, a $0.06 benefit related to a customer settlement and $0.01 of restructuring and other net significant and/or non-recurring charges. Adjusted EPS* of $1.29 was up 2 percent versus the prior year.
The company recorded net income from continuing operations attributable to common shareowners in the fourth quarter of $1.4 billion which included $394 million of acquisition accounting adjustments, a benefit of $87 million related to a customer settlement and $20 million of restructuring and other net significant and/or non-recurring charges. Adjusted net income* was $1.8 billion, down 6 percent versus prior year as adjusted segment operating profit* growth was more than offset by higher interest expense and tax expense, and lower non-operating pension income. Operating cash flow from continuing operations in the fourth quarter was $4.7 billion. Capital expenditures were $805 million, resulting in free cash flow* of $3.9 billion.
Summary Financial Results – Continuing Operations Attributable to Common Shareowners

4th Quarter

Twelve Months

($ in millions, except EPS)

2023

2022

% Change

2023

2022

% Change

Reported

Sales

$    19,927

$    18,093

10 %

$    68,920

$    67,074

3 %

Net Income

$      1,426

$      1,422

— %

$      3,195

$      5,216

(39) %

EPS

$        1.05

$        0.96

9 %

$        2.23

$        3.51

(36) %

Adjusted*

Sales

$    19,824

$    18,093

10 %

$    74,305

$    67,074

11 %

Net Income

$      1,753

$      1,868

(6) %

$      7,263

$      7,098

2 %

EPS

$        1.29

$        1.27

2 %

$        5.06

$        4.78

6 %

Operating Cash Flow from     Continuing Operations

$      4,711

$      4,628

2 %

$      7,883

$      7,168

10 %

Free Cash Flow*

$      3,906

$      3,773

4 %

$      5,468

$      4,880

12 %

Backlog and BookingsBacklog at the end of the fourth quarter was $196 billion, of which $118 billion was from commercial aerospace and $78 billion was from defense.
Notable defense bookings during the quarter included:

$2.8 billion for GEM-T production at Raytheon
$1.3 billion of classified bookings at Raytheon
$838 million for F135 sustainment at Pratt & Whitney
$443 million for F119 sustainment at Pratt & Whitney
$408 million for HACM development at Raytheon
$355 million for F100 sustainment at Pratt & Whitney
$343 million for StormBreaker production at Raytheon
$321 million for Silent Knight production at Raytheon

Segment ResultsThe company’s reportable segments are Collins Aerospace, Pratt & Whitney, and Raytheon.
Collins Aerospace

4th Quarter

Twelve Months

($ in millions)

2023

2022

% Change

2023

2022

% Change

Reported

Sales

$   7,120

$   6,231

14 %

$ 26,253

$ 23,052

14 %

Operating Profit

$   1,126

$      843

34 %

$   3,825

$   2,816

36 %

ROS

15.8 %

13.5 %

230

bps

14.6 %

12.2 %

240

bps

Adjusted*

Sales

$   7,008

$   6,231

12 %

$ 26,198

$ 23,052

14 %

Operating Profit

$   1,035

$      845

22 %

$   3,896

$   3,047

28 %

ROS

14.8 %

13.6 %

120

bps

14.9 %

13.2 %

170

bps

Collins Aerospace had fourth quarter 2023 reported sales of $7,120 million, up 14 percent versus the prior year. Reported sales benefited from a customer settlement. The remaining increase in sales was driven by a 23 percent increase in commercial aftermarket, a 17 percent increase in commercial OE, and a 1 percent increase in military. The increase in commercial sales was driven primarily by strong demand across commercial aerospace end markets, which resulted in higher flight hours and higher OE production rates. The increase in military sales was driven primarily by the timing of deliveries. On an adjusted basis, sales* were up 12 percent versus the prior year.
Collins Aerospace recorded operating profit of $1,126 million, up 34 percent versus the prior year. The increase in operating profit was primarily driven by drop through on higher commercial aftermarket volume and favorable mix, partially offset by lower commercial OE as drop through on volume was more than offset by higher production costs. Higher R&D expenses were offset by lower SG&A. Reported operating profit included a $112 million benefit from a customer settlement. On an adjusted basis, operating profit* of $1,035 million was up 22 percent versus the prior year.
Pratt & Whitney

4th Quarter

Twelve Months

($ in millions)

2023

2022

% Change

2023

2022

% Change

Reported

Sales

$   6,439

$   5,652

14 %

$ 18,296

$ 20,530

(11) %

Operating Profit

$      382

$      306

25 %

$ (1,455)

$   1,075

(235) %

ROS

5.9 %

5.4 %

50

bps

(8.0) %

5.2 %

(1,320)

bps

Adjusted*

Sales

$   6,439

$   5,652

14 %

$ 23,697

$ 20,530

15 %

Operating Profit

$      405

$      321

26 %

$   1,688

$   1,250

35 %

ROS

6.3 %

5.7 %

60

bps

7.1 %

6.1 %

100

bps

Pratt & Whitney had fourth quarter 2023 reported sales of $6,439 million, up 14 percent versus the prior year. The increase in sales was driven by a 20 percent increase in commercial OE, an 18 percent increase in commercial aftermarket, and a 4 percent increase in military sales. The increase in commercial sales was primarily due to higher aftermarket volume, higher OE volume and favorable mix. The increase in military sales was driven by higher sustainment volume partially offset by lower material inputs on production programs.
Pratt & Whitney recorded operating profit of $382 million, up 25 percent versus the prior year. The increase in  operating profit was primarily driven by drop through on higher commercial aftermarket volume and favorable commercial OE mix. This was partially offset by higher commercial OE volume, higher production costs, an unfavorable military contract adjustment, and the absence of a benefit from a prior year customer contract adjustment. Higher R&D expenses were offset by lower SG&A. On an adjusted basis, operating profit* of $405 million was up 26 percent versus the prior year.
Raytheon

4th Quarter

Twelve Months

($ in millions)

2023

2022

% Change

2023

2022

% Change

Reported

Sales

$   6,886

$   6,661

3 %

$ 26,350

$ 25,176

5 %

Operating Profit

$      604

$      528

14 %

$   2,379

$   2,448

(3) %

ROS

8.8 %

7.9 %

90

bps

9.0 %

9.7 %

(70)

bps

Adjusted*

Sales

$   6,886

$   6,661

3 %

$ 26,350

$ 25,176

5 %

Operating Profit

$      618

$      570

8 %

$   2,434

$   2,498

(3) %

ROS

9.0 %

8.6 %

40

bps

9.2 %

9.9 %

(70)

bps

Raytheon had fourth quarter 2023 reported sales of $6,886 million, up 3 percent versus prior year. The increase in sales was primarily driven by higher volume on advanced technology and air power programs.
Raytheon recorded operating profit of $604 million, up 14 percent versus the prior year. The increase in operating profit was driven primarily by higher volume and lower operating expenses, partially offset by unfavorable net program efficiencies. The prior year operating profit also included a charge of $42 million related to a divestiture. On an adjusted basis, operating profit* of $618 million was up 8 percent versus the prior year.
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Klarna says its AI assistant does the work of 700 people after it laid off 700 people

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The Swedish fintech, which was criticized for its handling of a dramatic staff reduction in 2022, is touting new efficiencies powered by OpenAI.

Klarna is bullish on bots.
One month after taking its OpenAI-powered virtual assistant global, the Swedish buy-now, pay-later company has released new data touting its ability to handle customer communications, make shoppers happier, and even drive better financial results.
The app-based AI chatbot already handles two-thirds of all customer service chats, the company said Tuesday—some 2.3 million conversations so far—with the virtual assistant earning customer satisfaction ratings at the same level as human agents. Klarna, which is expected to go public this year and will need all the hype it can get at a time when investors have been generally frosty toward IPOs, estimates that the chatbot could help improve its profits by $40 million in 2024.
Announcing a partnership with OpenAI early last year, Klarna said it was one of the first companies to integrate the firm’s groundbreaking ChatGPT technology into a plug-in for shopping. The natural-language interface initially helped customers choose items and make other shopping-related decisions based on personalized queries, a feature Klarna described as “smooth shopping.”
The company has continued to build out its AI offerings since then. Its app-based assistants are now available to customers worldwide and handle a variety of tasks including refunds, cancellations, and even disputes.
Klarna boasted in its announcement on Tuesday that the AI assistant “is doing the equivalent work of 700 full-time agents.”
That statement may raise eyebrows for anyone who remembers the middle of 2022, when the company laid off roughly the same number of employees, then about 10% of its staff. At the time, CEO Sebastian Siemiatkowski cited economic uncertainty, inflation, and the likelihood of a recession as reasons for the cuts. He was criticized for his handling of the staff reduction after he shared a public spreadsheet on LinkedIn that contained the names of many of the laid-off workers.
Fast Company asked Klarna how the company arrived at its calculation for its AI assistant’s human-equivalent productivity. The company said the number of equivalent jobs the AI could perform wasn’t related to the layoffs. In a statement, a spokesperson said the company’s customer service is supported by four to five large third-parties that collectively have over 650,000 employees, and that it offers customers the option to speak with human agents if that’s what they prefer.
“This is in no way connected to the workforce reductions in May 2022, and making that conclusion would be incorrect,” the statement read. “We chose to share the figure of 700 to indicate the more long-term consequences of AI technology, where we believe it is important to be transparent in order to create an understanding in society. We think [it’s] important to proactively address these issues and encourage a thoughtful discussion around how society can meet and navigate this transformation.”
Companies have used chatbots for years to handle low-level customer queries and other interactions, although these tools are expected to become more versatile in the wake of advancements in artificial intellegence.
Source: Fast Company

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ASTRI fully supports Budget to invest in the future

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The Hong Kong Applied Science and Technology Research Institute (ASTRI) welcomes the Financial Secretary’s robust and actionable initiatives outlined in the latest Budget, reinforcing Hong Kong’s status as a leading international hub for innovation and technology (I&T). These strategic moves are designed to enhance the city’s appeal for investment and talent, catalysing the growth of I&T ecosystem with a focus on fostering a green future and advancing digitalisation, injecting fresh impetus into Hong Kong’s high-quality development.
ASTRI is at the forefront with a cache of mature innovative technologies, ranging from AI, Blockchain, Cybersecurity, Digital Twins, Eco-Tech, FinTech and Micro-electronics, that are ready for commercialisation and adoption. These technologies are poised to expedite the green and digital transformation of local businesses, and support Hong Kong to develop as an international green financial centre and establish a highly efficient data ecosystem.
Realise I&T commercialisation
Ir Sunny Lee, Chairman, ASTRI, expressed gratitude for HKSAR Government’s unwavering support towards innovation and technology, bringing new partners and investments for the sector.  ASTRI is committed to collaborating with the government, and developing more applied technologies that positively impact the business and society, with a focus on commercialisation and industrialisation for the greater good.
He added that the I&T sector is actively engaged in the national development plan, seizing “Greater Bay Area” (GBA) and “Belt and Road” (B&R) opportunities, and promoting high-quality development with a focus on technological advancement and green sector. “With ASTRI’s newly-opened office in Shenzhen Futian District, we will further promote GBA companies to adopt Hong Kong-invented innovative technologies to upgrade and transform. With the advanced Hong Kong platform, we aim at helping technologies developed in the region to go global, tapping into B&R countries and beyond.”
Focus on Fintech and Green Tech
Dr Denis Yip, Chief Executive Officer, ASTRI said he is pleased that more resources will be allocated on supporting I&T sector, building I&T ecosystem and strengthening collaboration among government, industry, academia and research institutes, investing the future together. “Technology and finance are the twin engines for the city’s economic development. ASTRI-develop fintech and green tech would revolutionalise traditional industries, and promote the development of new sector such as digital assets, bringing new opportunities for I&T companies and new areas of growth.”
Dr Yip stressed that apart from promoting green finance and digitisation, ASTRI is also committed to the development of the whole I&T ecosystem. He added that three alliances have been set up in the past year, namely, Microelectronics Technology Consortium, Smart Mobility Technology (C-V2X) Alliance and Fintech and ESG Alliance. The fourth one on ConTech and PropTech is on the way, facilitating knowledge transfer and technology innovation. ASTRI will also facilitate industrial transformation and economic growth through I&T. Looking ahead, ASTRI will continue incubating new blood through various talent programmes, expanding the I&T talent pool in the city.
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Natural Personal Care Ingredients Market worth $7.9 billion by 2028 – Exclusive Report by MarketsandMarkets™

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The report “Natural Personal Care Ingredients Market  by Type (Emollients, Surfactnats, Rheology Modifiers, Preservatives, Active Ingredients), Application (Skin Care, Hair Care, Make-up, Oral Care), and Region – Global Forecast to 2028″, Natural Personal Care Ingredients Market size was USD 5.3 billion in 2022 and is projected to reach USD 7.9 billion by 2028, at a CAGR of 8.3%, between 2023 and 2028.
The market is projected to grow because of the evolving lifestyle across globe. These natural Ingredients play a crucial role in various skin care, hair care, oral care, make-up, and other applications such as foundations, serums, shampoos, bath soaps, shower gels, creams, face masks, sun care products, lip balms, lipsticks, color cosmetics and others. In addition, due to the increasing population, increasing demand for natural ingredients, technological advancements and changing consumer preferences the demand for natural personal care ingredients can increase due to various applications.
Browse in-depth TOC on “Natural Cosmetics Ingredients Market”

198 – Tables        
68 – Figures
241– Pages

Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=181363323
“Surfactants are projected to register the highest CAGR, in terms of value, of the global natural personal care ingredients market during the forecast period.”
Surfactants are expected to grow rapidly in the natural personal care ingredients market due to increased demand for sustainable products in cosmetics and personal care, as well as their use in pharmaceuticals. They function as surface-active agents, meaning they help reduce surface tension between different substances, allowing them to mix more effectively. Therefore, surfactants are crucial in skincare, haircare, and cosmetics like creams and lotions. Also, the rising awareness of natural ingredients in personal care boosts the demand for natural surfactants. Thus, surfactants are widely used in applications such as skin care, hair care, make-up, oral care, and others, which will increase demand for them in the future.
“The hair care is estimated to be the second-largest application of natural personal care ingredients market, in terms of value, during the forecast period.”
As individuals tackle with a different hair-related issues, ranging from hair loss and thinning to dryness and damage, the demand for effective solutions continues to rise. Combined by the diverse array of hair types, each with its unique needs, such as curly, straight, fine, or coarse, the market for tailored hair care products grows rapidly. Moreover, escalating levels of pollution, characterized by airborne toxins and particulate matter, further exacerbate hair woes, triggering issues like scalp irritation, dullness, and accelerated hair aging. Consequently, the hair care application within the natural personal care ingredients market stands composed for sustained growth, driven by the imperative for complete solutions that address these multifaceted challenges while prioritizing natural and sustainable ingredients.
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“Europe is estimated to be the largest market for the natural personal care ingredients market, in terms of value, during the forecast period.”
The adoption of natural personal care ingredients in this region has increased due to changing environment, concerns about increasing health hazards linked to synthetic ingredients, and shift in lifestyle preferences towards eco-conscious and sustainable products. Moreover, The European region is estimated to be the second-fastest growing regions in the world, with rising disposable incomes. This is creating a favourable environment for the growth of the natural personal care ingredients market. Accordingly, Europe will be the largest market for natural personal care ingredients market during the forecast period.
The key players profiled in the report include BASF SE (Germany), Croda International Plc (UK), Ashland Inc. (US), The Lubrizol Corporation (US), Evonik Industries AG (Germany), Dow Inc. (US), Symrise AG (Germany), and others.
Browse Adjacent Market: Specialty Chemicals Market Research Reports & Consulting
Related Reports:
Green Preservatives Market – GLOBAL FORECAST TO 2028
Biosurfactants Market – GLOBAL FORECAST TO 2028
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