RTX has reported fourth quarter sales of US$19.9 billion, up 10% over the prior year, which included a benefit of US$0.1 billion related to a customer settlement. On an adjusted basis, sales were US$19.8 billion, up 10% over the prior year. GAAP EPS from continuing operations of US$1.05 was up nine 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 US$1.29 was up 2% versus the prior year.
The company recorded net income from continuing operations attributable to common shareowners in the fourth quarter of US$1.4 billion which included US$394 million of acquisition accounting adjustments, a benefit of US$87 million related to a customer settlement and US$20 million of restructuring and other net significant and/or non-recurring charges. Adjusted net income was US$1.8 billion, down six percent versus the 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 US$4.7 billion. Capital expenditures were US$805 million, resulting in free cash flow of US$3.9 billion.
Outlook:
“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 US$10 billion accelerated share repurchase programme, we’ve delivered over US$29 billion to shareowners since the merger, achieving significant progress toward our capital return commitment of between US$36 – US$37 billion through 2025.” (£1.00 = US$1.29 at time of publication).
