Summary
United Technologies Corporation (UTC), now known as RTX Corp, reported its second-quarter 2019 financial results, showing a notable increase in net sales compared to the prior year. Net sales for the quarter rose by 18% to $19.6 billion, driven by the acquisition of Rockwell Collins and organic growth across its segments, particularly in aerospace. Net income attributable to common shareholders was $1.9 billion, or $2.20 per diluted share, a decrease from the $2.05 billion, or $2.56 per diluted share, reported in the second quarter of 2018. The company also announced significant strategic developments, including a pending all-stock merger of equals with Raytheon Company, expected to create a new entity named Raytheon Technologies Corporation. Concurrently, UTC is progressing with its plan to separate its commercial businesses, Otis and Carrier, into independent companies. These transformative events are poised to reshape the company's structure and strategic focus moving forward.
Financial Highlights
51 data points| Revenue | $11.33B |
| Gross Profit | $2.77B |
| R&D Expenses | $605.00M |
| SG&A Expenses | $902.00M |
| Operating Expenses | $10.06B |
| Operating Income | $1.39B |
| Interest Expense | $352.00M |
| Net Income | $1.90B |
| EPS (Basic) | $2.22 |
| EPS (Diluted) | $2.20 |
| Shares Outstanding (Basic) | 854.40M |
| Shares Outstanding (Diluted) | 863.70M |
Key Highlights
- 1Net sales increased by 18% year-over-year to $19.6 billion for the second quarter of 2019, primarily driven by the Rockwell Collins acquisition and organic growth in aerospace segments.
- 2Net income attributable to common shareholders decreased to $1.9 billion ($2.20/share) from $2.05 billion ($2.56/share) in the prior year's quarter, impacted by higher costs and integration expenses.
- 3The company announced a significant all-stock merger of equals with Raytheon Company, expected to close in the first half of 2020, creating Raytheon Technologies Corporation.
- 4UTC is proceeding with the separation of its Otis and Carrier businesses into independent entities, also anticipated for completion in the first half of 2020.
- 5Research and development expenses increased significantly, reflecting investments in new technologies and the impact of the Rockwell Collins acquisition.
- 6Operating profit for the quarter decreased to $2.58 billion from $2.88 billion in the prior year, impacted by increased operating expenses and restructuring costs.
- 7The company maintained strong liquidity with $6.8 billion in cash and cash equivalents, and access to substantial revolving credit facilities.