US aerospace and defence group Raytheon Technologies received a third-quarter revenue boost from the recovering commercial air travel industry, but its missiles unit took a hit from continued supply chain constraints.
Raytheon’s third-quarter revenue reached $17bn, up 5 per cent over the same period last year, slightly missing analyst estimates of $17.2bn.
The top line increase was fuelled by “the continued recovery in the commercial aerospace market and strong customer demand,” said chief executive Greg Hayes.
Revenue at Collins Aerospace, which makes aircraft parts and avionics, jumped 11 per cent to $5.1bn in the quarter over the previous year, while Pratt & Whitney, which makes jet engines, had sales of $5.38bn, up 14 per cent.
The revenue growth was driven by commercial sales, which were up as higher consumer demand for air travel meant Raytheon customers, which include Boeing and Airbus, were buying more parts, jet engines and services for their aircraft.
However, Raytheon’s military business revenues declined as supply chain snarls, particularly parts and labour shortages, continued throughout the industry.
Sales in the company’s missiles and defence unit, which houses the Stinger missile, were down 6 per cent to $3.7bn in the third quarter compared with the previous year.
Hayes said that “we expect industry-wide challenges to continue near-term”.
Raytheon cut its full-year sales guidance to $67bn to $67.3bn, down from $67.75bn to $68.75bn.
The group earned 94 cents a share in the third quarter, up from 93 cents a share the previous year, compared with analyst estimates of 96 cents a share.
Shares were flat in pre-market trading on Tuesday.