10-QPeriod: Q1 FY2009

RTX Corp Quarterly Report for Q1 Ended Mar 31, 2009

Filed April 24, 2009For Securities:RTX

Summary

United Technologies Corporation (RTX) reported a 12.2% decrease in total revenues to $12.25 billion for the quarter ended March 31, 2009, compared to the same period in the prior year. This decline was driven by a 5% organic revenue contraction, a 6% adverse foreign currency translation impact, and a 1% impact from net divestitures. The company experienced a 25% drop in consolidated operating profit to $1.25 billion, largely due to lower revenues, increased restructuring charges, and foreign currency impacts. Despite the challenging global economic environment, Sikorsky reported a significant 30% revenue increase due to strong government military spending. However, other segments like Carrier and UTC Fire & Security saw substantial revenue declines. RTX incurred $163 million in restructuring charges during the quarter to mitigate volume declines and reduce costs, with full-year restructuring costs expected to reach approximately $750 million. The company maintained a strong liquidity position with $3.27 billion in cash and cash equivalents and access to credit facilities.

Financial Highlights

25 data points
Beta

Revenue

$12.25B

25.2% Gross Margin

Net Income

$722.00M

5.9% Net Margin

EPS (Diluted)

$0.78

Free Cash Flow

$485.00M

Financial Statements
Beta
Revenue$12.25B
Cost of Revenue$6.76B
Gross Profit$3.09B
R&D Expenses$409.00M
SG&A Expenses$1.48B
Operating Income$1.25B
Interest Expense$175.00M
Net Income$722.00M
EPS (Basic)$0.79
EPS (Diluted)$0.78
Shares Outstanding (Basic)918.00M
Shares Outstanding (Diluted)926.00M

Key Highlights

  • 1Total revenues decreased by 12.2% to $12.25 billion year-over-year, impacted by a challenging global economic environment.
  • 2Operating profit decreased by 25% to $1.25 billion, reflecting lower sales volumes and increased restructuring costs.
  • 3Sikorsky was a strong performer with a 30% revenue increase, driven by military demand, while Carrier and UTC Fire & Security experienced significant revenue declines.
  • 4Restructuring charges of $163 million were incurred in Q1 2009, with full-year estimates now at $750 million to address cost reductions.
  • 5Net income attributable to common shareholders declined to $722 million from $1 billion in the prior year.
  • 6Diluted earnings per share decreased to $0.78 from $1.03 year-over-year.
  • 7The company maintained a solid liquidity position with $3.27 billion in cash and cash equivalents and no borrowings under its committed credit agreements.

Frequently Asked Questions

The primary driver of the revenue decline was the challenging global economic environment, which led to a 5% organic revenue contraction, compounded by a 6% adverse foreign currency translation impact and a 1% impact from net divestitures. Specific segments like Carrier and UTC Fire & Security experienced significant weakness.

The company has implemented restructuring charges totaling $163 million in the first quarter of 2009, with an expectation of reaching approximately $750 million for the full year. These actions are aimed at mitigating volume declines and reducing structural and overhead costs across its businesses.

The company maintained a strong liquidity position with $3.27 billion in cash and cash equivalents as of March 31, 2009. Additionally, RTX had $2.5 billion in committed credit agreements with no borrowings outstanding, providing significant financial flexibility.

Sikorsky was a standout performer, with revenue increasing by 30% due to strong government military spending. In contrast, Carrier and UTC Fire & Security faced significant challenges, experiencing substantial revenue declines due to weak market conditions in their respective industries.