Radeon lowers sales forecast due to Russia’s sanctions

NEW YORK (awp / afp) – US space and defense company Raytheon Technologies on Tuesday released better-than-expected quarterly results, but its sales for that year will be affected by Russian sanctions.

As a result of the merger of Radeon and United Technologies in 2020, the group’s revenue rose 3% year-on-year to $ 15.7 billion in the first quarter, slightly higher than analysts’ estimates.

Adjusted earnings per share was $ 1.15, up 28% from the previous year. “This is a bit of a burden as our operations in Russia are being suspended,” the group said in a statement.

Throughout 2022, Raytheon lowered its revenue forecast, mainly due to “global sanctions against Russia”.

Annual sales are expected to be between $ 67.75 billion and $ 68.75 billion, down from the previous estimate of $ 68.5 billion or $ 69.5 billion.

“Our focus on strong recovery and operational implementation in the business space has enabled us to deliver both revenue growth and margin expansion,” said Greg Hayes, CEO of Radeon Technologies.

The Collins Aerospace branch (avionics, information systems, etc.) grew its quarterly revenue by 10% to $ 4.8 billion, driven by growth in commercial aviation.

An allocation of $ 141 million has been recorded to take into account the impact of sanctions against Russia.

The performance of Brad and Whitney (aircraft engines) also reached double-digit growth (+ 12%) to $ 4.5 billion.

Russian sanctions are $ 155 million.

The segment dedicated to communications technologies, cyber security and space fell by 5% to $ 3.5 billion, while the segment dedicated to missiles and defense fell by 7 to 3.5 billion.

“This decline is mainly the result of disruptions in the supply chain and a drop in sales of some security programs,” Radeon said.

On the New York Stock Exchange, the title Raytheon, which had been on the air since its invasion of Ukraine by Russia, was flat at $ 99.73 (+ 0.12%) on Tuesday morning.

afp / rp