Ashar Jawad
2 min read
In This Article:
The three-week-long strike by Pratt & Whitney engine workers is likely to weigh on RTX Corporation (NYSE:RTX)’s cash flow during the second quarter, CEO Chris Calio told the Bernstein Strategic Decisions Conference on Wednesday.
A person wearing a hardhat and safety glasses in a factory installing a LED high bay fixture.
On Tuesday, about 3,000 machinists approved a new four-year contract, marking the end of the first strike at the engine-maker’s Connecticut sites since 2001, where the workers’ top priority was securing a commitment from RTX Corporation (NYSE:RTX) subsidiary Pratt & Whitney to maintain work on the F-35 fighters in the state.
According to Calio, the strike hampered the company’s ability to ship jet engines because of which he expects break-even to negative cash flow during Q2. However, the RTX Corporation (NYSE:RTX) CEO was confident about the company’s ability to recover from the impact in the quarters ahead.
RTX Corporation (NYSE:RTX)’s shares were down 1% as of 2 PM EDT on Wednesday. Despite the dip, the company has had impressive year-to-date returns of nearly 15% on the back of notable high-value contract awards.
During the conference, Calio described President Trump’s proposed Golden Dome missile defense shield as a unique opportunity. He also added that RTX Corporation (NYSE:RTX) continues to expect strong weapons demand from Europe despite ongoing trade tensions.
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Disclosure: None.
