RTX Corp Quarterly Report for Q1 Ended Mar 31, 2016

Summary

United Technologies Corporation (RTX) reported its first-quarter 2016 results, showcasing a slight increase in net sales to $13.357 billion from $13.320 billion in the prior year, largely driven by organic growth in its aerospace businesses. However, operating profit saw a decrease of 10.9% to $1.945 billion from $2.182 billion, impacted by various factors including unfavorable mix in commercial OEM sales and increased engine margins at Pratt & Whitney. The company also incurred significant restructuring costs. The sale of Sikorsky Aircraft in November 2015 continues to influence the financial statements, with its results reclassified to discontinued operations. RTX utilized a portion of the proceeds from this sale for substantial share repurchases. The company maintained a strong liquidity position with a considerable amount of cash and cash equivalents, though total debt increased due to recent debt issuances and share repurchase activities.

Key Highlights

• 1Net sales for Q1 2016 were $13.357 billion, a marginal increase of 0.2% compared to $13.320 billion in Q1 2015.
• 2Operating profit decreased by 10.9% to $1.945 billion in Q1 2016 from $2.182 billion in Q1 2015.
• 3Diluted earnings per share from continuing operations were $1.42 in Q1 2016, down from $1.51 in Q1 2015.
• 4The company recorded $62 million in pre-tax restructuring costs in Q1 2016.
• 5Cash and cash equivalents stood at $7.215 billion as of March 31, 2016, up from $7.075 billion at December 31, 2015.
• 6Total debt increased to $23.051 billion as of March 31, 2016, from $20.425 billion at December 31, 2015, largely due to debt issuances and share repurchases.
• 7The sale of Sikorsky Aircraft in November 2015 continues to impact financial reporting, with its results classified under discontinued operations.

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