Why RTX Stock Is Falling Today
(NYSE: RTX) is beginning to quantify the impact of a previously announced massive recall of one of its most popular aircraft engines, forecasting billions in charges related to the problems. The stock is feeling the hit, falling by more than 6% as of 11:25 a.m. ET on Monday.
RTX, which until recently was known as Raytheon Technologies, was formed in 2020 when defense specialist Raytheon combined with the commercially focused aerospace arm of United Technologies. In July, the company disclosed that it had discovered a problem with the manufacture of hundreds of Pratt Whitney jet engines that would require a costly fix.
On Monday, investors got a glimpse at the magnitude of the financial hit. RTX said it would remove about 600 to 700 engines for inspection over the next three years and would book a pretax operating-profit charge of at least $3 billion in the current quarter related to the issue.
Source Fool.com
