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RTX Reports 2023 Results and Announces 2024 Outlook
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.
The post RTX Reports 2023 Results and Announces 2024 Outlook appeared first on HIPTHER Alerts.
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Tata Electronics and Tokyo Electron Limited (TEL) Announce Strategic Partnership to Grow Semiconductor Ecosystem in India
Tata Electronics today signed a memorandum of understanding with Tokyo Electron Limited (TEL), a leading global supplier of semiconductor equipment and services. The two companies will collaborate to accelerate semiconductor equipment infrastructure for India’s first Fab being built by Tata Electronics in Dholera, Gujarat, and for its assembly and test facility in Jagiroad, Assam.
Through this partnership, Tata Electronics and TEL will also focus on training Tata Electronics’ workforce on TEL equipment and supporting ongoing improvement and R&D initiatives. This collaboration will leverage the strengths of both companies to establish a robust semiconductor manufacturing ecosystem in India.
As previously announced, Tata Electronics is building India’s first Fab in Dholera, Gujarat, with a total investment of INR 91,000 crores (~US$11bn). In addition, another INR 27,000 crores (~US$3bn) will be invested in a greenfield facility in Jagiroad, Assam, for the assembly and testing of semiconductor chips. Together, these facilities will produce semiconductor chips for applications across automotive, mobile devices, artificial intelligence (AI), and other key segments to serve customers globally. As the construction of these facilities progresses, it is critical to grow partnerships across the entire semiconductor ecosystem, spanning process and design technology, as well as equipment suppliers. With this announcement of the partnership with TEL, Tata Electronics has solidified a critical pillar to achieve its execution targets.
Dr Randhir Thakur, Managing Director & CEO, Tata Electronics, said, “We have a bold vision of becoming a leader in electronics manufacturing by offering integrated solutions across the value chain to our global customers. TEL has a history of working closely with its customers, and its expertise in the semiconductor equipment space will help build a dynamic ecosystem to support the timely execution of bringing up our Fab and advanced packaging factories. We are excited about the customer centricity that TEL brings to this partnership.”
Toshiki Kawai, President & CEO of Tokyo Electron Limited, emphasised, “We are delighted to announce our partnership with Tata Electronics, which brings together our combined expertise and resources to strengthen the semiconductor ecosystem in India significantly. This strategic collaboration spans both front-end fabrication and back-end packaging technologies, highlighting our commitment to delivering exceptional support and value to Tata Electronics. By leveraging our collective strengths, we aim to accelerate development and drive innovation across multiple technology nodes. Together, we are poised to set new benchmarks in the industry, fostering a robust and dynamic semiconductor landscape that will benefit all stakeholders.”
TEL is committed to supporting the Indian semiconductor ecosystem. Both the front-end and back-end product groups will provide resources and technology support to bring advanced TEL products to the Indian market. TEL will lead this effort by also offering diversified products for the MAGIC market (MAGIC—Metaverse, Autonomous Mobility, Green Energy, IoT & Information, Communications). TEL will actively explore opportunities to leverage India’s talent to establish an engineering service in India to support its global product development.
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Blackwired Launches ThirdWatch℠, A Paradigm Shift in Cybersecurity
Blackwired, the leading cyber observatory for disruptive cybersecurity technologies, has announced the launch of ThirdWatchSM, a groundbreaking solution to identify direct threats facing an organization and its Third Parties.
ThirdWatchSM is a subject-directed monitoring platform that provides a comprehensive 360-degree view in 3D of existential threats that impact organizations and the associated cyber risks posed by their vendors, partners, suppliers, networks, and digital assets. Utilizing a non-invasive, zero-touch technology process, ThirdWatchSM generates Direct Threat Intelligence while cross-referencing this intelligence with traditional vulnerability assessment data. This integration produces evidence-based scoring and specific solution sets to mitigate all direct cyber threats facing an organization.
Direct Threat Risk Management
This innovative platform establishes a new category—Direct Threat Risk Management. By incorporating all features of Attack Surface Management (ASM) and Third-Party Risk Management (TPRM) tools, ThirdWatchSM surpasses conventional offerings, delivering enhanced usability, substantial value, and unique Direct Threat Intelligence.
Central to ThirdWatchSM are its pivotal features, including Direct Threat Intelligence, Direct Threat Mitigation, Third-Party Risk Management, Network Vulnerability Assessment, 3D Visualization, a comprehensive Ecosystem and Evidence-Based Scoring. The platform is designed with five key configurations: Enterprise, Audit, Managed Service Provider (MSP), Incident Response (IR), and Legal.
“Implementing a ‘defend forward’ mentality is crucial. To combat modern threats, organizations need to pivot to a proactive approach to threat management, seeking out threats and neutralizing them before they escalate into attacks. ThirdWatchSM empowers organizations to identify and eliminate direct threats that jeopardize core operations, subsidiaries, and affiliates while mitigating risks posed by third parties in their ecosystems.” – Jeremy Samide, CEO & Co-founder, Blackwired.
ThirdWatchSM ensures compliance with third-party regulatory cybersecurity requirements and helps organizations navigate potential supply chain disruptions caused by cyber events.
Management teams can utilize the platform to monitor their cybersecurity operations’ effectiveness, access cyber threat landscapes swiftly, and provide a digital witness record of pre-event direct threat intelligence.
Blackwired leverages industry and government expertise to deliver innovative solutions that integrate cutting-edge technologies such as artificial intelligence, edge computing, blockchain, and quantum computing. This strategic integration is underpinned by a methodology that starts with the premise of proactive prevention and, when necessary, offense – a notably different approach compared to traditional reactive cybersecurity measures.
The launch of ThirdWatchSM marks a significant evolution in cybersecurity strategy. Organizations can utilize the platform to enhance cyber resilience while safeguarding their digital assets against a rapidly changing threat landscape. As cyber risks escalate, ThirdWatchSM offers a proactive defense mechanism designed to help organizations stay one step ahead of malicious threat actors.
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On Mission to Upskill 500,000 Students, MongoDB Partners With Ministry of Education’s All India Council for Technical Education
MongoDB, Inc. (NASDAQ: MDB) today announced the expansion of MongoDB for Academia in India, including a new partnership with All India Council for Technical Education (AICTE), Ministry of Education, Government of India. The AICTE partnership will be supported by SmartBridge’s SmartInternz learning platform to give more than 150,000 Indian students access to virtual internships and to gain the skills required to use MongoDB Atlas—the leading multi-cloud developer data platform.
As part of the program’s expansion, MongoDB also announced a new partnership with GeeksforGeeks, a platform for computer science resources in India. The collaboration will make the MongoDB Developer Learning Path available to all of GeeksforGeeks’ 25 million registered users.
Launched in September 2023, the MongoDB for Academia in India program provides student training, curriculum resources for educators, credits to use MongoDB technology at no cost, and certifications to help individuals start careers in the technology industry. The skills and training provided through the program are particularly important, as many Indian organizations struggle to find developers who have the skills to build modern applications and take advantage of emerging technologies like generative AI. According to a report from the National Association of Software and Service Companies, India’s technology sector will demand more than one million engineers with advanced skills in artificial intelligence and other capabilities over the next three years. Overall, the industry body expects there will be a need for around six million digital roles by 2028—and the available talent pool is forecast to be 4.7 million workers. This gap underscores the need for increased collaboration between industry and academia to upskill students and educators in India to meet the demands of the country’s large and growing economy.
“In India, we have a massive opportunity with the current wave of AI and modern technologies that will transform our lives and economy in the coming years. But to take advantage of that opportunity, it is vital our developers have the right skills. We’re excited to partner with MongoDB to help make that possible,” said Dr. Buddha Chandrasekhar CEO, Anuvadini AI, Ministry of Education and Chief Coordinating Officer, AICTE, Ministry of Education, Government of India.
To address this challenge, MongoDB for Academia is partnering with the All India Council for Technical Education (AICTE), the Indian government’s authority for the management of technical education, and the edtech platform SmartBridge to launch a virtual internship program through the SmartInternz platform. Aligned with the government’s Skill India Initiative, the program aims to provide full-stack development skills to over 150,000 students. Each internship will include 60 hours of experiential learning, hands-on bootcamps, courses, and project work, as well as simulated corporate environments where students can apply their learned skills, collaborate with peers, and receive mentorship.
“We’ve seen great appetite and interest on our platform for modern database technologies like MongoDB. We want to equip students with knowledge of in-demand technologies so they have skills they need to become the job-ready candidates India’s organizations are looking for,” said Amarender Katkam, Founder and CEO at SmartBridge and SmartInternz.
In the past year, the MongoDB for Academia program has made major strides toward its goal of upskilling 500,000 students. To date, more than 200 partnerships with educational institutions have been established, as well as collaborations with other government and private organizations. Hundreds of educators have been onboarded on to the MongoDB for Academia program, more than 100,000 students have received skills training, and over 450,000 hours of learning have been completed.
“India loves developers and so does MongoDB. I’m so proud of the work our MongoDB for Academia team is doing to empower Indian developers and to support the next generation of tech talent in this country,” said Sachin Chawla, Area Vice President, India at MongoDB.
MongoDB for Academia is also expanding to partner with GeeksforGeeks which will see the organizations collaborate on a number of new projects, including the syndication of key full-stack development courses to learners both in online and offline GeeksforGeeks centers across India. The MongoDB Developer Learning path will also become available to all GeeksforGeeks users, and is expected to reach more than 100,000 aspiring developers.
To learn more about MongoDB for Academia, visit mongodb.com/academia.
MongoDB Developer Data Platform
MongoDB Atlas is the leading multi-cloud developer data platform that accelerates and simplifies building with data. MongoDB Atlas provides an integrated set of data and application services in a unified environment to enable developer teams to quickly build with the capabilities, performance, and scale modern applications require.
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