Profits at US aerospace and defense contractor Raytheon rose as it sold more jet engines, parts and aftermarket services to airlines in 2022 amid rising demand for air travel around the world.
The results followed strong sales of fighter jets, helicopters and missiles, including a type of rocket sent to the Ukrainian army, helping profits at Lockheed Martin, which beat Wall Street expectations in the fourth quarter.
Operating profit at Raytheon Pratt & Whitney’s jet engine division rose 127 percent to $306 million from the same period a year earlier on higher commercial aftermarket sales. Revenue at Pratt & Whitney rose 10 percent to $5.65 billion, driven by a 37 percent increase in commercial original equipment components.
Lockheed reported revenue of $19bn for the quarter ended last year, up more than 7 per cent from $17.7bn in the same period in 2021. Earnings per share fell to $7.40 from $7.47 as the company took a $129m charge, mostly $100m in the helicopter business for severance costs and asset impairment.
While Raytheon’s missile sales rose 6 percent to $4.1 billion in the quarter, profits fell 23 percent due to inefficiencies and costs from divestments. Raytheon’s missiles include the Stinger and Javelin, the latter of which was produced jointly with Lockheed Martin and played a crucial role at the start of the war in Ukraine.
Lockheed’s quarterly sales increase was driven by $275 million in net sales of the group’s F-35 fighter jet program and $260 million for various integrated warfare systems and sensors.
Also added to the top line is $115 million for tactical and attack missiles, including a multiple-launch rocket system that Ukrainian forces are using from a high-mobility artillery rocket system (Himars) to defeat Russian forces.