What was the primary driver of the significant increase in net sales?

The primary driver of the 16% increase in net sales to $14.4 billion was the acquisition of Goodrich Corporation, which was integrated into the UTC Aerospace Systems segment. This acquisition significantly contributed to the top-line growth.

How did the Goodrich acquisition impact the company's financial performance beyond sales?

The Goodrich acquisition significantly impacted various aspects of the company's financial performance. While it drove sales growth and strengthened the UTC Aerospace Systems segment, it also led to increased interest expense due to the financing required, and the company incurred substantial integration and restructuring costs. The fair value accounting for the acquisition also resulted in significant goodwill and intangible asset recognition.

What is the company doing with its divestiture proceeds?

The company is using the cash generated from the divestiture of non-core businesses primarily to repay debt that was incurred to finance the acquisition of Goodrich. This strategy aims to deleverage the balance sheet and improve financial flexibility.

What is the outlook for research and development spending?

The company expects company-funded research and development for the full year 2013 to increase by approximately $300 million compared to 2012. This increase is driven by investments in new aerospace programs, particularly at UTC Aerospace Systems and Pratt & Whitney.

RTX 10-Q Quarterly Report Q1 FY2013 — Revenue, Net Income, EPS

Summary

United Technologies Corporation (UTC) reported strong top-line growth in the first quarter of 2013, with net sales increasing 16% year-over-year to $14.4 billion. This growth was primarily driven by the significant contribution from the acquisition of Goodrich, which was integrated into the UTC Aerospace Systems segment. Income from continuing operations attributable to common shareowners rose to $1.27 billion, or $1.39 per diluted share, up from $1.19 billion, or $1.31 per diluted share, in the prior year period. The company also continued its strategic divestiture of non-core businesses, using the proceeds to reduce debt incurred from the Goodrich acquisition. Despite the overall positive financial performance, the company incurred restructuring charges of $50 million related to ongoing cost-reduction efforts across its segments. The aerospace businesses, particularly Pratt & Whitney and UTC Aerospace Systems, showed robust sales increases due to the Goodrich acquisition and other factors, though Sikorsky experienced a decline in sales. The company reiterated its focus on cash generation and maintaining strong liquidity, with plans for significant share repurchases and capital expenditures for the remainder of the year.

Financial Highlights

46 data points

Beta

Revenue

$14.40B

0.3% Gross Margin

Net Income

$1.27B

0.1% Net Margin

EPS (Diluted)

$1.39

Total Assets

$88.51B

Free Cash Flow

$1.41B

Financial Statements

Beta

Revenue	$14.40B
Cost of Revenue	$7.85B
Gross Profit	$3.93B
R&D Expenses	$610.00M
SG&A Expenses	$1.63B
Operating Expenses	$12.70B
Operating Income	$2.01B
Net Income	$1.27B
EPS (Basic)	$1.40
EPS (Diluted)	$1.39
Shares Outstanding (Basic)	901.30M
Shares Outstanding (Diluted)	913.80M

Key Highlights

1Net sales increased by 16% to $14.4 billion compared to the prior year's first quarter, largely due to acquisitions, primarily Goodrich.
2Income from continuing operations attributable to common shareowners increased to $1.27 billion from $1.19 billion year-over-year.
3Diluted earnings per share from continuing operations were $1.39, up from $1.31 in the prior year.
4The company recognized $50 million in pre-tax restructuring costs across its segments.
5Significant progress was made on divesting non-core businesses, with proceeds used to reduce debt.
6The UTC Aerospace Systems segment saw substantial growth, driven by the integration of Goodrich.
7Share repurchases resumed, with $335 million in common stock repurchased in the quarter.

RTX Corp Quarterly Report for Q1 Ended Mar 31, 2013

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions