Profits at US defense and aerospace contractor Raytheon soar as it sells more jet engines, spare parts and aftermarket services to airlines in 2022 amid demand for air travel airlines around the world are on the rise.
The results follow strong sales of fighter jets, helicopters and missiles, including those sent to the Ukrainian military, helping revenue at Lockheed Martin beat Wall Street expectations in fourth quarter.
Operating profit at Raytheon’s Pratt & Whitney jet engine division jumped 127% to $306 million year-over-year thanks to higher commercial after-sales sales. Revenue at Pratt & Whitney grew 10% to $5.65 billion, thanks to a 37% increase in commercial original equipment components.
Lockheed reported revenue of $19 billion in the last quarter of last year, up more than 7% from $17.7 billion in the same period in 2021. Earnings per share fell to $7.40 from 7 $.47 when the company received $129 million in fees, mostly $100 million in its helicopter business for severance costs and asset impairment.
While Raytheon’s rocket sales grew 6% to $4.1 billion in the quarter, profits fell 23% due to underperformance and divestment fees. Raytheon’s missiles include the Stinger and Javelin, the latter of which were co-produced with Lockheed Martin and played a key role in the start of the war in Ukraine.
Lockheed’s quarterly sales increase was driven by $275 million in net revenue from the corporation’s F-35 fighter jet program and $260 million for various integrated sensing and warfare systems. .
Also added to the top line are $115 million for offensive and tactical missiles, including an omni-directional missile system that the Ukrainian military fired from a highly mobile artillery rocket system ( Himars) to fight back against Russian forces.