What is the financial performance for the quarter and nine months ended September 30, 2015, compared to the prior year?

For the quarter ended September 30, 2015, net sales were $13,788 million, a decrease from $14,613 million in the prior year. Net income attributable to common shareowners was $1,362 million, down from $1,854 million. For the nine months ended September 30, 2015, net sales were $41,798 million, down from $42,920 million, and net income attributable to common shareowners was $4,330 million, down from $4,747 million. Diluted EPS from continuing operations also decreased for both periods.

What is the impact of the Sikorsky sale on the financial statements?

The agreement to sell Sikorsky Aircraft to Lockheed Martin has led to its results being reclassified to 'Discontinued Operations' for all periods presented. This includes reclassifying Sikorsky's assets and liabilities to 'Assets held for sale' and 'Liabilities held for sale.' The sale is expected to close in the fourth quarter of 2015 and is anticipated to generate approximately $6 billion in net cash.

Are there any significant cost or margin pressures impacting profitability?

Yes, the company experienced increased restructuring costs, totaling $344 million for the nine months ended September 30, 2015. Additionally, the Pratt & Whitney segment faced challenges with higher negative engine margins and supply chain transition issues, leading to a significant decline in its operating profit. Overall gross margin as a percentage of sales also declined year-over-year.

How is the company managing capital and returning value to shareholders?

RTX Corp is actively managing its capital structure. During the nine months ended September 30, 2015, the company repurchased approximately $4 billion of its common stock and paid dividends totaling approximately $1.6 billion. A new $12 billion share repurchase program was authorized in October 2015. The company also issued debt to fund these activities and anticipates using proceeds from the Sikorsky sale for further repurchases.

RTX 10-Q Quarterly Report Q3 FY2015 — Revenue, Net Income, EPS

Summary

United Technologies Corporation (RTX) reported mixed financial results for the third quarter and nine months ended September 29, 2015. While overall net sales saw a decline compared to the previous year, primarily driven by foreign currency translation and a decrease in the Pratt & Whitney segment, the company highlighted organic sales growth in its commercial businesses, specifically UTC Climate, Controls & Security and Otis. A significant event during this period was the announcement and progression of the sale of the Sikorsky Aircraft business to Lockheed Martin for $9 billion, which has led to Sikorsky's results being reclassified to 'Discontinued Operations.' This strategic divestiture is expected to generate substantial cash proceeds, which management intends to use for share repurchases. The company faced increased restructuring costs and a decline in operating profit margins, particularly within the aerospace segments, due to factors like engine margin pressure at Pratt & Whitney and higher pension expenses. Despite these challenges, RTX continued its commitment to returning capital to shareholders through dividends and significant share repurchases, funded in part by debt issuance and asset sales.

Financial Highlights

47 data points

Beta

Revenue

$13.79B

0.3% Gross Margin

Net Income

$1.36B

0.1% Net Margin

EPS (Diluted)

$1.54

Total Assets

$92.14B

Cash & Equivalents

$5.48B

Free Cash Flow

$1.02B

Financial Statements

Beta

Revenue	$13.79B
Cost of Revenue	$7.11B
Gross Profit	$3.99B
R&D Expenses	$546.00M
SG&A Expenses	$1.36B
Operating Expenses	$11.71B
Operating Income	$2.30B
Interest Expense	$184.00M
Net Income	$1.36B
EPS (Basic)	$1.55
EPS (Diluted)	$1.54
Shares Outstanding (Basic)	876.40M
Shares Outstanding (Diluted)	885.00M

Key Highlights

1Net sales for the quarter decreased by 6% to $13.79 billion, and by 3% for the nine months to $41.80 billion, largely due to foreign currency translation headwinds.
2The sale of the Sikorsky Aircraft business to Lockheed Martin for $9 billion was announced and is expected to close in Q4 2015, with its financials now reported under 'Discontinued Operations'.
3Pratt & Whitney experienced a significant operational profit decline of 34% for the quarter and 9% for the nine months, attributed to lower engine sales, supply chain transition issues, and increased negative engine margins.
4UTC Climate, Controls & Security showed resilience with organic sales growth of 3% for the quarter and 5% for the nine months, driven by U.S. HVAC and transport refrigeration businesses.
5Restructuring costs increased to $344 million for the nine months ended September 30, 2015, impacting profitability across segments.
6Diluted earnings per share from continuing operations decreased to $1.61 for the quarter and $4.76 for the nine months, down from $1.93 and $5.24 respectively in the prior year periods.
7The company significantly increased its share repurchase activities, repurchasing approximately $4 billion in the first nine months of 2015 and authorizing a new $12 billion repurchase program.

RTX Corp Quarterly Report for Q3 Ended Sep 30, 2015

Summary

Financial Highlights

Key Highlights

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