By Nilanjana Basu and Mike Stone
-Aerospace and defense firm Raytheon Technologies Corp lowered its full-year revenue forecast on Tuesday, hurt by the cessation of its activities in Russia.
Shares were flat in pre-market trading at $99.50.
Russia has been hit by Western sanctions over its invasion of Ukraine, leading to a large number of U.S. companies severing ties with Moscow, and the aviation industry is among the sectors severely impacted.
Raytheon’s Chief Financial Officer Neil Mitchill told Reuters that lowering the 2022 revenue guidance by $750 million “was strictly related to direct and indirect sales that are no longer allowed because of the global sanctions imposed on Russia.”
Raytheon expects full-year revenue to be between $67.75 billion and $68.75 billion, lower than its previous forecast of $68.5 billion to $69.5 billion.
About three quarters of that lost $750 million revenue was direct sales of commercial equipment to Russia, Mitchill said, and the remainder was engine parts that would have been sold principally by Pratt & Whitney Canada.
However, the company said revenue rose 3% to $15.72 billion in the quarter, driven by a recovery in air travel demand, which boosted sales of its aerospace products and services.
Raytheon posted a net income of $1.08 billion, or 72 cents per share, in the quarter ended March 31, compared with $753 million, or 50 cents per share, last year.
(Reporting by Nilanjana Basu in Bengaluru; Editing by Amy Caren Daniel and Chizu Nomiyama)